Suppose a project will require 2500 local labour hours at the construction stage. Assume it can hire 80 % of labour who would otherwise be unemployed and 20% of labour will be sourced from elsewhere in the economy. The market wage of labour is $45 per hour while the leisure time for unemployed labour is measured at $20 per hour. Match the following values you would use in the CBA:
Suppose a project will require 2500 local labour hours at the construction stage. Assume it can hire 80 % of labour who would otherwise be unemployed and 20% of labour will be sourced from elsewhere in the economy. The market wage of labour is $45 per hour while the leisure time for unemployed labour is measured at $20 per hour. Match the following values you would use in the CBA:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose a project will require 2500 local labour hours at the construction stage. Assume it can hire 80 % of labour who would otherwise be
Transcribed Image Text:Total labour cost (market price)
Total labour cost (shadow price)
Total net employment
Total opportunity cost of labour
A. 112500
B. 50000
C.
D.
E.
40000
62500
62500
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