Exhibit 11.2

-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The total labor earnings in equilibrium are represented by the area _____
A) a.
B) b.
C) c.
D) a + b.
E) b + c.

Question

Exhibit 11.2
 
-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The total labor earnings in equilibrium are represented by the area _____
A) a. 
B) b. 
C) c. 
D) a + b. 
E) b + c.

Quizplus · Accepted Answer

The total labor earnings in equilibrium are represented by the area under the wage rate (price) and above the labor supply curve, which is typically the area of a rectangle formed by the equilibrium wage and the equilibrium quantity of labor, represented by b + c.

Exhibit 11.2 -Refer to Exhibit 11.2,which Shows the Labor Market.The Vertical Axis