​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:

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Quick Ratio

A financial ratio that measures a company’s ability to meet its short-term obligations with its most liquid assets.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the net income or loss.

Return On Stockholders' Equity

A measure of financial performance calculated by dividing net income by average shareholders' equity, showing how effectively management uses equity from shareholders to generate profit.