The Following Figures Show the Demand and Supply of Labor

question 18

Multiple Choice

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
Refer to Figure 15.5.If a minimum wage of $10 is set by the government, then in market A:

• A)a shortage of 20 labor hours is created.
• B)the quantity demanded for labor rises to 20 labor hours.
• C)a shortage of 15 labor hours is created.
• D)a surplus of 20 labor hours is created.
• E)a surplus of 10 labor hours is created.

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Definitions:

Varying Amounts

Describes quantities that differ in size, number, or extent, and are not fixed or constant.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, in behavioral psychology.

Fixed Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, leading to a high and steady rate of response.

Variable Ratio

In operant conditioning, a reinforcement schedule that rewards an action after an unpredictable number of responses.