4. A competitive car wash currently hires 3 workers, who together can wash 90 cars per day. The market price of car washes is $5 per wash, and the price of workers is $75 per day. The car wash should hire a fourth worker if it would increase total production to at least a. 100 cars per day. c. 115 cars per day. b. 105 cars per day. d. 120 cars per day.Questions 2 and 3 refer to the following diagram, which shows the marginal revenue product of workers at Sam's Sawmill, a competitive lumber firm that hires workers from a competitive labor market. 160 140 120 Price of 100 labor dollars per day) 60 50 MRP 20 2 3 4 5 6 7 8 Quantity of labor [workers per day) 2. How many workers will Sam's Sawmill hire when the wage rate is $70 per day? a. 3 or fewer workers. b. 4 workers. c. 5 workers. d. As many workers as are available. 3. Which of the following events would increase the demand for labor at Sam's Sawmill? a. An increase in the demand for lumber. b. An increase in the number of workers living in the area. c. A decline in the market price of lumber. d. A breakdown of one of the mill's saws. 45Questions 19 and 20 refer to the following diagram, which shows the Lorenz curve for a hypothetical economy- 100 80 45 line 60 Cumulative percentage of money income 40 31 - Lorenz curve (actual Income distribution) 20 40 60 100 Cumulative percentage of families 19. According to this Lorenz curve, what percentage of total income is earned by the poorest 20 percent of families? a. 5 percent. b. 10 percent. C. 15 percent. d. 20 percent. 20. If this economy's distribution of income becomes more unequal, then the Lorenz curve will a. move closer to the 45 line. b. become more bowed outward. c. lie above the 450 line. d. develop an S-shape.17. Under a negative income tax program, a. the poor would have no incentive to work. b. other welfare programs such as food stamps would become even larger. C. government bureaucracy could be decreased. d. people with incomes slightly above the break-even level could still receive cash payments