Suppose the Labour Market Is in Equilibrium

question 124

Multiple Choice

Suppose the labour market is in equilibrium.Which of the following statements is false?

• A)The equilibrium wage rate is equal to the marginal revenue product of labour.
• B)At the equilibrium wage, the quantity of labour demanded equals the quantity of labour supplied.
• C)Some workers will earn more than the equilibrium wage.
• D)At the equilibrium wage, the demand for labour is equal to the supply of labour.

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Definitions:

Callable

A feature of a financial instrument that allows the issuer to repurchase or redeem the instrument before its maturity date.

Yield To Call

The total return anticipated on a bond if it is held until the date it is called by the issuer, including interest payments and the call price.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, as specified in the callable feature.