​The Following Graph Shows the Labor Market

question 57

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 total earnings of labor in equilibrium equal _____. ​
Figure 11.1

• A)$40
• B)$80
• C)$160
• D)$16
• E)$8

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Definitions:

Unemployed

Individuals who are without a job and actively seeking work.

Coined

Typically used to describe the creation of a new word or phrase, or the act of making coins.

Corporations

Legal entities that are separate and distinct from their owners, allowing them to own assets, incur liabilities, and enter into contracts.

Stock

Represents ownership in a corporation, giving holders a claim on part of the company’s assets and earnings.