The Figure Below Shows the Supply Curve for Labor

question 12

Multiple Choice

The figure below shows the supply curve for labor.Figure 16.1

-Why does the labor market have more than one equilibrium wage rate?

• A)Workers differ in their productivities.
• B)Productivity of workers increases initially but later declines.
• C)The labor demand curve is backward bending.
• D)Marginal revenue product of different inputs used by firms vary.
• E)Employers compete among themselves to hire the best workers.

---

Definitions:

Account Balances

The amounts of money in an account at any given time, representing the net of debits and credits over a period.

Cash Payments

Outflows of cash from a company to settle debts, purchase goods or services, or make investments.

Cash Account

An account recording the amounts of cash received and paid out in transactions.

Credit

A financial term denoting the provision of money, goods, or services with the expectation of future payment.