One Difference Between the Labor Market and Markets for Goods

question 54

Multiple Choice

One difference between the labor market and markets for goods and services is

• A) the demand in the labor market is inelastic; the demand for goods and services may be elastic or inelastic.
• B) the supply of labor is perfectly inelastic because the quantity supplied is constant. The elasticity of supply for goods and services is different in different markets.
• C) concepts of fairness arise more frequently in labor markets than in the markets for goods and services.
• D) in the labor market, firms are suppliers while households are demanders.

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Definitions:

Denominator

In a fraction, the number below the line which indicates the total number of parts into which the whole is divided.

Fraction

A mathematical expression representing the division of one quantity by another; it consists of a numerator and a denominator.

Multiply

The mathematical operation of increasing one number by the value of another, a basic arithmetic function symbolized by the symbol “x” or “*”.