The Labor Market Is Said to Be in Equilibrium When

question 30

Multiple Choice

The labor market is said to be in equilibrium when

• A) everyone who wants to work is supplying his or her labor.
• B) the number of workers is equal to the number of jobs available at a specific wage.
• C) firms are unwilling to hire more workers.
• D) workers keep their hours constant.
• E) the number of available workers is increasing.

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Definitions:

Price

The amount of money that must be paid to obtain a good or service.

Budget Line

A curve demonstrating the trade-offs between two goods or services that a consumer can afford with a specific budget, considering price changes.

Money Income

The total amount of monetary earnings or revenue received by an individual or a household over a specified period.

Budget Line

A graphical representation showing all possible combinations of goods that can be purchased with a given budget.