If wages drop below the market equilibrium level in a competitive labor market:
A. unemployment will persist until the wage increases.
B. firms will be able to offer lower wages and still fill all the jobs they have.
C. firms will demand more labor than workers are willing to supply.
D. All of these statements are true.
Answer: C
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In the figure above, income is most unequally distributed
A) in Country A. B) in Country B. C) in Country C. D) in one of the nations, but without more information, it is not possible to determine in which country income is distributed most unequally.
Identify the correct statement form the following
a. Governance prevents buyers in the market from switching between sellers. b. The cost of ending a relationship with a buyer in the market is always high for sellers. c. Goods and the parties involved in market transactions are not interchangeable. d. At market-clearing prices participants can rest assured that shortages or surpluses will not frustrate their expectations.