​The Following Graph Shows the Labor Market

question 23

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 twentieth unit of labor is earning a wage of: ​
Figure 11.1

• A)$4, all of which is economic rent.
• B)$4, none of which is economic rent.
• C)$8, all of which is economic rent.
• D)$8, none of which is economic rent.
• E)$8, half of which is economic rent.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where there is discomfort or distress from holding two conflicting beliefs, attitudes, or values simultaneously.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing situational explanations.

Central Route Persuasion

A technique for convincing others that requires thoroughly understanding the message's content, resulting in enduring changes in attitudes.

Foot-In-The-Door Phenomenon

The tendency for people who have first agreed to a small request to comply later with a larger request.