If the real wage is above the equilibrium level in the labour market:
a) The quantity demanded of labour is higher than the quantity supplied
b) The quantity demanded of labour equals the quantity supplied
c) The quantity demanded of labour is lower than the quantity supplied
d) The real wage will automatically rise in the short run to bring about equilibrium
Answer: c) The quantity demanded of labour is lower than the quantity supplied
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Answer the following statement true (T) or false (F)
In a small country, the adult population equals 500. There are 400 people in the labor force and 300 people are employed. The labor force participation rate equals
A. 75 percent. B. 80 percent. C. 60 percent. D. an undetermined amount given the lack of information.
Bank interest rates on short-term business loans during the late 1970s
A. had an upward trend. B. had a downward trend. C. stayed about the same.
A farmer who takes a long position in the futures market is hedging against a potential reduction in prices
a. true b. false