If the Real Wage Rate Is Such That the Quantity

question 276

Multiple Choice

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded

• A) the economy is at full employment.
• B) actual real GDP will not equal potential GDP.
• C) job search decreases.
• D) labor resources are allocated efficiently.

---

Definitions:

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Rational Choice Theory

A theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Psychological Principles

Psychological principles refer to fundamental theories and established facts derived from psychology that explain and predict behaviors and mental processes.

Social Behaviors

Actions and reactions of individuals or groups in response to external or internal stimuli, influenced by cultural, social, and psychological factors.