An Assumption of the Competitive Labor Market Model Is That

question 28

Multiple Choice

An assumption of the competitive labor market model is that

• A) labor is homogenous.
• B) capital is more important than labor.
• C) the labor market is a monopsony.
• D) there is no equilibrium wage rate.

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Definitions:

Express Contract

A contract in which the terms of the agreement are explicitly stated verbally or in writing.

Implied Contract

a contract formed by the actions, behavior, or circumstances of the parties involved, rather than written or spoken words.

Void Contract

A contract that lacks legal validity, making it unenforceable and as if it never existed from the onset.

Voidable Contract

A valid agreement that may be legally voided at the option of one of the parties due to certain conditions such as fraud or duress.