Use the Following to Answer Questions

question 145

Multiple Choice

Use the following to answer questions:
Figure: International Trade 3
-(Figure: International Trade 3) Refer to the figure. If the government in this diagram eliminates all imports with a tariff, the value of the wasted resources will be:

• A) $4.50.
• B) $81.
• C) $27.
• D) $36.

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Definitions:

Compensating Differential

Additional wage or payment provided to workers to compensate for undesirable aspects of a job, such as risk or unpleasant conditions.

Compensating Wage Differential

A financial adjustment to salaries that aims to balance out less desirable aspects of a job, such as hazardous conditions or irregular hours.

Supply Of Labor

The supply of labor refers to the total hours that workers wish to work at a given real wage rate.

Labor Economists

Specialists who study the dynamics of the labor market, including employment, wages, and labor productivity.