What Does the Basic Neoclassical Theory of the Labour Market

question 61

Multiple Choice

What does the basic neoclassical theory of the labour market predict

• A)Workers earn a wage equal to the value they contribute to the economy.
• B)Wages are determined entirely by market demand.
• C)Wages are determined entirely by market supply.
• D)Workers are compensated according to their contribution to the social value of society.

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