If at a Particular Wage Rate in a Competitive Labour

question 42

Multiple Choice

If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour,then

• A)some workers will begin to accept lower wages and induce employers to hire more workers.
• B)there will be a shortage of labour,thereby increasing the equilibrium wage rate.
• C)the demand curve for labour will shift to the right.
• D)the supply curve for labour will shift to the right.
• E)a black market for labour will form,with firms offering workers very high wages.

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Definitions:

Accord And Satisfaction

A legal settlement where a dispute is resolved by the parties involved through a mutually agreed upon arrangement, often different from the original agreement.

Discharged Debt

Debt that has been forgiven or cancelled, legally releasing the debtor from the obligation to repay.

Late Charges

Fees imposed for not meeting the payment deadlines as stipulated in a contract or agreement.

Option Contract

A contract granting the holder the right, but not the obligation, to buy or sell an asset at a specified price within a set period.