The Existence of a Shortage

question 444

Multiple Choice

The existence of a shortage

• A) means resources are being allocated efficiently.
• B) is impossible in a market economy.
• C) pushes the price up.
• D) pushes the price down.

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Definitions:

Wage Rates

The standard amount of pay given for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Wage Income

The sum of all wages received by individuals within an economy, organization, or sector over a specified period.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a certain period.

United States

A country located in North America, known for its significant impact on global finance, culture, technology, and politics.