The Following Figure Shows Curves for Labor Demand and Labor

question 20

Multiple Choice

The following figure shows curves for labor demand and labor supply.

-Refer to the figure above.If labor unions negotiate the wage to be fixed at WH,we refer to the difference between ________ and ________ as ________.

• A) Q₅; Q₃; involuntary unemployment
• B) Q₃; Q₁; wage rigidity
• C) Q₅; Q₁; structural unemployment
• D) Q₄; Q₂; voluntary unemployment

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Definitions:

Proposition

A declaration or affirmation that reflects a viewpoint or evaluation.

Sentence

A collection of words complete by nature, usually having a subject and a verb, used to make a statement, ask a question, express surprise, or give an order.

Equivalent

The same in terms of importance, utility, or definition.

Property

A characteristic or attribute that something possesses, often used to differentiate it from other things.