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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 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: Total labour cost (market price) Total labour cost (efficiency price) Total net employment Total opportunity cost of labour A. 112500 B. 50000 C. 62500 D. 62500 E. 40000

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: Total labour cost (market price) Total labour cost (efficiency price) Total net employment Total opportunity cost of labour A. 112500 B. 50000 C. 62500 D. 62500 E. 40000

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
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 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: Total labour cost (market price) Total labour cost (efficiency price) Total net employment Total opportunity cost of labour A. 112500 B. 50000 C. 62500 D. 62500 E. 40000
Transcribed Image Text: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: Total labour cost (market price) Total labour cost (efficiency price) Total net employment Total opportunity cost of labour A. 112500 B. 50000 C. 62500 D. 62500 E. 40000
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