Which of the Following Is a Correct Statement About the Labor

question 4

Multiple Choice

Which of the following is a correct statement about the labor market?

• A) Workers determine the supply of labor, and firms determine the demand for labor.
• B) Workers determine the demand for labor, and firms determine the supply of labor.
• C) Workers determine the supply of labor, and government determines the demand for labor.
• D) The forces of supply and demand, while present in the labor market, have nothing to balance in that market.

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Definitions:

Preferences

The subjective tastes or desires of individuals, affecting their choices among various goods, services, or outcomes.

Discovered

Found or identified after a search, exploration, or investigation, often implying that the object or information was previously unknown or hidden.

Rational Consumers

Individuals who aim to maximize their utility or satisfaction from consumption under the constraints of their budget.

Complete Preferences

A concept in economics where an individual's preferences over a set of goods or outcomes are fully defined, allowing for every pair of outcomes to be compared.