Examlex

Solved

The Following Figure Shows Curves for Labor Demand and Labor

question 224

Multiple Choice

The following figure shows curves for labor demand and labor supply.
The following figure shows curves for labor demand and labor supply.    -Refer to the figure above.Why might we observe the wage rate to be at WH rather than at WM? A)  The market clearing wage rate is at WH. B)  By federal law, the minimum wage is set at WL. C)  New technological inventions may have driven up the wage rate. D)  Companies may have found that they can increase their returns from investments in labor by paying the higher wage.
-Refer to the figure above.Why might we observe the wage rate to be at WH rather than at WM?


Definitions:

Related Questions