In a Labor Market Without an Efficiency Wage, Minimum Wage

question 112

Multiple Choice

In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate exceeds the equilibrium real wage rate, there is a _{-------------} of labor and the real wage rate will_{-------------}
.

• A)surplus; rise
• B)shortage; fall
• C)surplus; not change because only efficiency wages or union wages can change.
• D)shortage; rise
• E)surplus; fall

---

Definitions:

Local Practices

Customary ways of operating within a specific geographical or cultural context, often adopted by businesses to ensure compliance and effectiveness.

Repatriate

The process of returning a person to their country of origin or citizenship after they have been abroad.

Home Country

The county in which a corporation's headquarters is located, influencing its management practices and approach to international business.

Foreign Country

A nation different from one's own, especially in terms of home or operational base.