Figure 16.3
Labor Market Impacts of Workfare-Induced Demand Shifts
Under Two Sets of Labor Market Conditions
(a) (b)

-According to figure 16.3which graph depicts a labor market that is categorized by under and unemployment?

Question

Figure 16.3
Labor Market Impacts of Workfare-Induced Demand Shifts
Under Two Sets of Labor Market Conditions
(a) (b)
 
-According to figure 16.3which graph depicts a labor market that is categorized by under and unemployment?

Quizplus · Accepted Answer

Figure 16.3A depicts a labor market that is categorized by under and unemployment, with a surplus of labor (unemployment) as the quantity of labor supplied exceeds the quantity demanded at the prevailing wage rate. Figure 16.3B, on the other hand, shows a labor market where there is no unemployment or underemployment, as the quantity of labor demanded and supplied at the prevailing wage rate are equal.

Figure 16.3 Labor Market Impacts of Workfare-Induced Demand Shifts