One Labor Market Quirk That Helps Explain Why Unemployment Goes

question 54

Multiple Choice

One labor market quirk that helps explain why unemployment goes up so much in a recession is that

• A) a price floor called a "minimum wage law" exists for the labor market.
• B) wages are flexible upward but "sticky" downward.
• C) firms are "demanders" of labor, rather than suppliers.
• D) machines could "replace" humans in the labor market.

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Definitions:

Endocrine

Pertaining to glands that secrete hormones directly into the bloodstream to regulate bodily functions.

Muscular

Pertaining to or involving the muscles.

Nervous

Relating to the nervous system, or describing a state of anxiety or tension.

Skeletal

Relating to the framework of hard structures (bones) that support or protect the body's organs and provide structure.