If We Were to Observe Above-Equilibrium Wages in a Particular

question 132

Multiple Choice

If we were to observe above-equilibrium wages in a particular labor market, then a possible explanation might be that

• A)the theory of efficiency wages holds true for that market.
• B)there is a powerful labor union representing workers in that market.
• C)workers are largely unskilled and/or inexperienced and minimum-wage laws are effectively holding wages up in that market.
• D)All of the above are correct.

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Definitions:

Neutral Third Party

An impartial person or entity involved in a conflict resolution or decision-making process to ensure fairness and objectivity.

Conciliation

A method of resolving disputes where a neutral third party helps the disputing parties reach a voluntary agreement.

Human Resource Department

A department within an organization that deals with the recruitment, management, and direction of the people who work in the organization.

Employee-Related Decisions

Judgements or resolutions made by a company concerning its workforce, including hiring, training, managing, and dismissing employees.