A Surplus in the Labor Market Indicates That the

question 53

Multiple Choice

A surplus in the labor market indicates that the

• A)real wage rate is less than the equilibrium wage rate.
• B)real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor.
• C)real wage rate has to rise before the labor market will reach equilibrium.
• D)workers are not looking for work because they enjoy their leisure time.
• E)quantity of labor demanded is less than the quantity of labor supplied.

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Definitions:

Production Rate

The speed at which goods are manufactured within a specified period.

Differential Revenue

The difference in revenue between two alternative decisions or periods.

Course of Action

A decision plan or set of steps to be followed to solve a problem or achieve an objective.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, used to cover fixed costs and generate profit.