In the Following Graph, S and D Represent the Supply

question 88

Multiple Choice

In the following graph, S and D represent the supply and demand curves respectively, in the labour market. Refer to the graph to answer the question. The labour union in the market demands that workers should be paid a wage rate of £15. The resulting unemployment is called _____.

• A) classical unemployment
• B) structural unemployment
• C) cyclical unemployment
• D) frictional unemployment

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Definitions:

Large Firms

Companies or enterprises that have a large scale of operations, significant market power, and a vast distribution of employees and resources.

Barrier To Entry

Factors that prevent or hinder companies from entering a specific market or industry.

Natural Monopoly

A market condition where due to high fixed or start-up costs, the most efficient number of firms in the industry is one.

Electric Power

The production and delivery of electricity through an interconnected network for uses such as lighting, heating, and powering appliances.