Market-Clearing Theories of the Labour Market Assume That Labour Markets

question 96

Multiple Choice

Market-clearing theories of the labour market assume that labour markets

• A)always clear.
• B)are inefficient.
• C)have asymmetrically rigid wages.
• D)should be regulated to produce an efficient wage rate.
• E)will always provide a subsistence wage.

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Definitions:

Natural Selection

A core mechanism of evolution, proposed by Charles Darwin, where individuals with traits best suited to their environment are more likely to survive and reproduce, passing those traits to future generations.

Psychological Mechanisms

Internal cognitive, emotional, or behavioral processes that mediate between stimulus and response, explaining how individuals perceive, react to, and interact with their environment.

Anxiety

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Personality

The mix of features or qualities that define an individual's unique identity.