The Labor Supply Curve Is Given by the Equation L_S

question 37

Multiple Choice

The labor supply curve is given by the equation L_S = 3W + 20 and the labor demand curve is given by the equation L_D = 80 − 2W. If the wage is $20, there will be a _________ of _________ workers.

• A) surplus; 80
• B) shortage; 40
• C) shortage; 80
• D) surplus; 40
• E) surplus; 20

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Definitions:

Impulsive

Characterized by actions taken without forethought or consideration of the consequences; spontaneous behavior.

Conservative

A political and social ideology that emphasizes the value of traditional institutions and practices, resistance to rapid change, and cautiousness in political and social reform.

Liberal

Pertaining to a political and social philosophy that emphasizes individual rights, freedom of expression, and a preference for governmental intervention in social and economic matters.

Openness

A personality trait characterized by an appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious.