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In: Economics

When the prevailing market wage is above equilibrium, we say: Multiple Choice there is no unemployment....

When the prevailing market wage is above equilibrium, we say:

Multiple Choice

  • there is no unemployment.

  • there is a surplus of labor.

  • the quantity of labor demanded is more than the quantity supplied.

  • All of these are true.

Solutions

Expert Solution

Option 2

there is a surplus of labor

==

The market rate is above equilibrium then the quantity supplied is higher than the quantity demanded which is quantity labor surplus and the surplus is also called unemployed labors.

Rahul Sunny answered 2 years ago
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