If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply.
B. firms will be able to offer lower wages and still fill all the jobs they have.
C. unemployment will persist until the wage increases.
D. All of these statements are true.
A. firms will demand more labor than workers are willing to supply.
You might also like to view...
Which of the following is correct? When expected leakages exceed expected injections, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. The nation's economy expands.
Which of the following items is included in U.S. GDP?
a. goods produced by foreign citizens working in the United States b. the difference in the price of the sale of an existing home and its original purchase price c. known illegal activities d. None of the above is included in U.S. GDP.
The term "bread and butter unionism" is closely associated with
A. the 8-hour day and the elimination of the wage system. B. better wages, hours, and working conditions. C. government ownership of the means of production. D. the abolition of factory work and a return to farming.
Based on the circular flow model, money flows from households to businesses in:
A. factor markets. B. product markets. C. neither factor nor product markets. D. both factor and product markets.