Why Does the Labor Market Have More Than One Equilibrium

question 15

Multiple Choice

Why does the labor market have more than one equilibrium wage rate?

• A)Workers differ in their productivities.
• B)Productivity of the workers initially increase but later decline.
• C)The labor demand curve is backward bending.
• D)Marginal revenue product of the different inputs used by firms vary.
• E)Employers compete among themselves to hire the best workers.

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Definitions:

Superstitious Behavior

Actions or practices based on the belief in supernatural causality, where specific activities are thought to influence outcomes, despite the absence of a logical cause-and-effect relationship.

Persistent Behavior

A continuous, repeated pattern of actions or tendencies that are exhibited over time, often resisting change.

Token Economy

A form of behavior modification based on the systematic reinforcement of target behavior, through the use of tokens that can be exchanged for other rewards.

Fixed-Ratio Schedule

A reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses have occurred.