The Figure Given Below Represents Equilibrium in the Labor Market

question 85

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-If the elasticity of supply of a resource is greater than zero but less than infinity, its income will comprise of:

• A)only economic rent.
• B)only transfer earnings.
• C)salaries and traveling allowances.
• D)both economic rent and transfer earnings.
• E)salaries, traveling allowances, as well as other incentives.

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Definitions:

Self Image

The mental representation an individual has of themselves; includes how one perceives their appearance, abilities, and worth.

Attitudes

An individual's settled way of thinking or feeling about someone or something, typically reflected in their behavior.

Values

Deeply held beliefs or standards that individuals hold which guide their behavior and decision-making processes.

Scapegoat Theory

A social psychological theory that suggests individuals may blame others for their own troubles or misfortunes as a way of coping with distress.