1)Suppose that the productivity of labour () is R35 000 per year and the equilibrium mark up () is 0.25. The long-run price-setting curve will be at a real wage of:

A) R8 750

B) R26 250

C) R46 666

D) R61 250

2)We expect the diffusion of new technology to raise both the real wage and the level of employment. However, this takes time, during which some people may lose out. These include:

A) Older, less-adaptable, workers.

B) Firms with far-sighted management.

C) Young, mobile, workers.

D) Workers in essential services.