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Question
Table 4-4| Hourly Wage (dollars) | Quantity of Labor Supplied | Quantity of Labor Demanded |
| $7.50 | 530,000 | 650,000 |
| 8.50 | 550,000 | 630,000 |
| 9.50 | 570,000 | 610,000 |
| 10.50 | 590,000 | 590,000 |
| 11.50 | 610,000 | 570,000 |
| 12.50 | 630,000 | 550,000 |
Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.
Refer to Table 4-4. If a minimum wage of $12.50 is mandated there will be a
A) shortage of 40,000 units of labor.
B) surplus of 40,000 units of labor.
C) shortage of 80,000 units of labor.
D) surplus of 80,000 units of labor.
Answer
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above