When the Real Wage Rate Is Less Than the Equilibrium

question 101

Multiple Choice

When the real wage rate is less than the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________.

• A)surplus; fall
• B)shortage; fall
• C)shortage; rise
• D)surplus; rise
• E)shortage; not change because it is fixed

---

Definitions:

Welfare Reforms

Changes or amendments to a country’s welfare policy aimed at improving the effectiveness and efficiency of its social security and aid programs.

Welfare Benefits

Financial assistance or services provided by the government to support individuals or families, especially those in financial need.

Time Limit

A fixed or set period within which something must be started, completed, or achieved.

Income Inequality

The imbalanced sharing of income among participants in an economy, affecting individuals and households differently.