When the wage rate paid to labor is below equilibrium: A) the supply of labor increases....

When the wage rate paid to labor is below equilibrium:

A) the supply of labor increases.

B) the demand for labor decreases.

C) the number of workers seeking jobs exceeds the number of jobs available.

D) the number of jobs available exceeds the number of workers seeking jobs.

Solutions

Expert Solution

When the wages are below the equilibrium then the number of jobs available exceeds the number of workers seeking jobs.The answer is "D".

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

If the minimum wage is below the equilibrium wage, the quantity demanded of labor will be...

If the minimum wage is below the equilibrium wage, the quantity demanded of labor will be more than the quantity supplied since the wage rate will not be legally allowed to reach the equilibrium. Select one: True False If an unemployed person becomes discouraged and quits actively seeking work, then, ceteris paribus, the unemployment rate falls and the size of the labor force decreases. Select one: True False Question text Suppose the total population for a particular country is 60...

If individuals are paid the wage at which the supply of labor is equal to the...

If individuals are paid the wage at which the supply of labor is equal to the demand for labor, A) no unemployment exists, and workers have no incentive to shirk. B) no unemployment exists, and workers have an incentive to shirk. C) some unemployment still exists, but workers have no incentive to shirk. D) some unemployment still exists, but managers can tell whether or not workers are shirking.

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage...

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage rate and employment change? Wage Rate Employment a.) Increase Increase b.) Increase Decrease c.) Decrease Increase d.) Decrease Decrease e.) No change Decrease 29.)How will a decrease in demand for computer repairs impact the demand and wage rate for skilled computer technicians? Wage Rate Employment a.) Decrease Decrease b.) No change Decrease c.) Increase Decrease d.) Increase Increase e.) No change Increase 30.)Which of...

With regard to the demand and supply of labor, explain the concept of the equilibrium wage

What happens to the market clearing wage and equilibrium employment if the demand for labor increases?...

What happens to the market clearing wage and equilibrium employment if the demand for labor increases? What happens to the market clearing wage and equilibrium employment if the supply of labor increases? What happens to the market clearing wage and equilibrium employment if the demand and supply of labor increases? What happens to the equilibrium wage and equilibrium employment of a given firm if the demand for product increases? What happens to the equilibrium wage and equilibrium employment of a...

Given downward-sloping demand for labor and upward-sloping supply of labor, explain if wage increases, decreases, or...

Given downward-sloping demand for labor and upward-sloping supply of labor, explain if wage increases, decreases, or has an indeterminate effect if (a) the number of qualified workers decreases and (b) the number of employers increases. Answer (a) and (b) as two different cases.

Draw a graph illustrating what would happen to the labor supply and to the equilibrium wage...

Draw a graph illustrating what would happen to the labor supply and to the equilibrium wage in a monopsony market facing a binding minimum wage. Detail whether these quantities would increase or decrease and highlight on your graph the new MC curve.

3. (a) The income effect of a wage rate increase will labor supply, and the substitution...

3. (a) The income effect of a wage rate increase will labor supply, and the substitution effect of a wage rate increase will labor supply. A. increase B. decrease C. not change Therefore, the total effect of a wage rate increase on labor supply is . A. positive B. negative C. ambiguous (b) Increasing the overtime wage rate is often considered as an effective way to increase employees working time during a relatively short period, such as one week. Explain...

1. Consider the labor supply and labor demand functions below, where w is the hourly wage...

1. Consider the labor supply and labor demand functions below, where w is the hourly wage and h is the hours worked per day. Labor supply: w=5+2.5´h Labor demand: w=26-0.5´h Compute the daily profit of the firm assuming that other factors of production are all costless. Show all the steps. Also, draw the labor supply and labor demand lines, and identify the economic profit area. (15 points) What if labor demand is less elastic; e.g., labor demand: w=26-h? Would daily...

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If...

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, then A. both consumer surplus and producer surplus increase since the new price is higher. B. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. C. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus. D....

Subjects