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 have to offer higher wages to attract the workers they need.
C. there won't be enough workers willing to work at that wage.
D. All of these statements are true.
D. All of these statements are true.
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An increase in the public debt would most likely indicate that
A) national saving has increased. B) the budget deficit has increased. C) the budget deficit has decreased. D) the trade deficit has decreased.
The Federal Reserve Open Market Committee meets about ____ times a year
a. 8. b. 12. c. 4. d. 2. e. 24.
If the price elasticity of supply for wheat is less than 1, then the supply of wheat is
a. inelastic. b. elastic. c. unit elastic. d. quite sensitive to changes in income.
Monetary stimulus may be ineffective if
A. People usually respond to lower interest rates by consuming more goods and services. B. The investment demand curve is inelastic. C. Expectations of a boom cause the investment demand curve to shift to the right, offsetting interest rate effects that would stimulate the economy. D. The investment demand curve is horizontal.