​The Following Graph Shows the Labor Market

question 30

Multiple Choice

​The following graph shows the labor market. The vertical axis measures wage in dollars, and the horizontal axis measures labor in hours. The opportunity cost in equilibrium is represented by the area _____. ​
Figure 11.1

• A)a
• B)b
• C)c
• D)a + b
• E)b + c

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Definitions:

Consumption

The usage of goods and services by households or individuals, forming a major component of aggregate demand in an economy.

Income

Income refers to the money received by an individual or entity, typically in the form of wages, salaries, or returns from investments, over a specified period of time.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Bushels

A unit of volume that is used for measuring agricultural produce, such as grain, fruit, or vegetables.