The long-run market solution to a wage that is so low that workers cannot survive is:
A) the reallocation of property rights, reducing the wage of some but increasing the wage for those earning a below-subsistence wage.
B) the reallocation of scarce resources to those who need it the most.
C) the starvation of some low-wage workers until the supply of labor shifts to the left and the wage for survivors increases to above subsistence.
D) government intervention into the market to establish a minimum wage so that all workers earn at least a subsistence wage.

Question

Quizplus · Accepted Answer

In the long run, if wages are too low for survival, some workers may leave the labor force or perish, reducing labor supply and potentially increasing wages for the remaining workers.

The Long-Run Market Solution to a Wage That Is So