Question 1 :

According to the child labour model, if the demand curve is sufficiently elastic

A	there are multiple equilibria
B	there is a single equilibrium with high wages
C	there is a single equilibrium with high wages or low wages, depending on the demand for labour
D	there is a single equilibrium with low wages

Question 2:

According to the child labour model, at the "bad" equilibrium

A	wages are low; all children and all adults work
B	wages are high; no children work; no adults work
C	wages are high; no children work; all adults work
D	wages are low; all children work; no adults work

Question 3:

Is the following statement true or false? The child labour model assumes children and adults are labour substitutes.

A	False; children are assumed to be less productive than adults
B	False; children are assumed to be more productive than adults
C	True; children are assumed to be less productive than adults
D	True; children are assumed to be more productive than adults