A surplus in the labor market indicates that the
A) real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor.
B) quantity of labor demanded is less than the quantity of labor supplied.
C) real wage rate has to rise before the labor market will reach equilibrium.
D) workers are not looking for work because they enjoy their leisure time.
E) real wage rate is less than the equilibrium wage rate.
B
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What best describes what makes a cooperative fixed exchange rate system work?
A) There are too many cooks in the kitchen. B) Take all you can get. C) You scratch my back, I'll scratch yours. D) Curiosity killed the cat.
Firms that face capacity constraints can increase output only up to the capacity, but no further. Therefore, firms
a. Should price to capacity as long as MR > MC b. Should price to capacity as long as MR = MC c. Should price to capacity as long as MR < MC d. Should not take capacity into consideration in pricing decisions