Which of the Following Statements Is True of Frictionless Labor

question 94

Multiple Choice

Which of the following statements is true of frictionless labor markets?

• A) In such markets, firms can instantly hire and fire workers.
• B) In such markets, all firms pay below the equilibrium wage rate.
• C) In such markets, the quantity of labor demanded always exceeds the quantity of labor supplied.
• D) In such markets, the quantity of labor supplied always exceeds the quantity of labor demanded.

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