Although wages, incomes, and interest rates are most often discussed in real terms, what matters most are their nominal values.

The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the wage rate increases?

A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.

Refer to the above table. When the quantity of labor equals 3, what does the average product equal?

A. 63 B. 17 C. 21 D. 189