Presence of unemployment implies all except
A) The labor market clears
B) There exists an excess supply of labor
C) The labor market is an example of a non-clearing market
D) The quantity of labor supplied exceeds the quantity of labor demanded

Question

Quizplus · Accepted Answer

Unemployment indicates that the labor market is not in equilibrium, meaning it does not clear. This is because when unemployment exists, the quantity of labor supplied exceeds the quantity of labor demanded, which is a situation of excess supply of labor, making the labor market a non-clearing market. Therefore, the statement that the labor market clears (A) is the exception and does not imply the presence of unemployment.

Presence of Unemployment Implies All Except