Suppose the Labor Market Is in Equilibrium

question 273

Multiple Choice

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

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

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Definitions:

Incentive Function

Describes how various economic incentives influence behaviors and decisions of individuals or organizations.

Resource Supply Schedules

Tables or charts that show the quantity of a resource that suppliers are willing to offer at various price levels.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Land

Refers to natural resources or the surface of the earth, including fields, forests, and minerals, which are used for production.