-In the figure above, if the minimum wage rate is $8 per hour, then, after taking account of resources lost in job search, the workers' surplus is the area ________ and the firms' surplus is the area ________.
A) e; c
B) a; f
C) f; a
D) d; b
E) a + b + c + d + e; f

Question

-In the figure above, if the minimum wage rate is $8 per hour, then, after taking account of resources lost in job search, the workers' surplus is the area ________ and the firms' surplus is the area ________.
A) e; c 
B) a; f 
C) f; a 
D) d; b 
E) a + b + c + d + e; f

Quizplus · Accepted Answer

The workers' surplus is the area above the supply curve and below the wage rate, which is area 'a'. The firms' surplus is the area below the demand curve and above the wage rate, which is area 'f'.

-In the Figure Above, If the Minimum Wage Rate Is