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The Following Figure Represents the Equilibrium in the Labor Markets

Question 20

Multiple Choice

The following figure represents the equilibrium in the labor markets. Figure 14.4 The following figure represents the equilibrium in the labor markets. Figure 14.4 In the figure, MFC: Marginal Factor Cost curve D: Demand or the Marginal Revenue Product curve S: Supply curve According to Figure 14.4, if the government imposes a minimum wage of W<sub>1</sub>, what quantity of labor will a competitive labor market hire? A) Q<sub>1</sub> B) Q<sub>2</sub> C) Q<sub>3</sub> D) Less than Q<sub>2</sub> E) Greater than Q<sub>3</sub> In the figure,
MFC: Marginal Factor Cost curve
D: Demand or the Marginal Revenue Product curve
S: Supply curve
According to Figure 14.4, if the government imposes a minimum wage of W1, what quantity of labor will a competitive labor market hire?


A) Q1
B) Q2
C) Q3
D) Less than Q2
E) Greater than Q3

Correct Answer:

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