Surplus labour in the market creates pressure to increase market wages, in the absence of minimum-wage legislation.

Question

Quizplus · Accepted Answer

Surplus labour in the market means that there are more workers than available jobs, which typically leads to lower wages rather than higher wages. Minimum-wage legislation can help to set a floor for wages and prevent exploitation of workers, but in the absence of such legislation, wages may be driven down by competition among job seekers.

Surplus Labour in the Market Creates Pressure to Increase Market