When labor supply is less than labor demand which of the following is True?
A) Less money is needed to recruit.
B) Wages can remain unchanged.
C) The labor market is considered loose.
D) Wages are generally increased.
E) This is considered an ideal scenario for employers.

Question

Quizplus · Accepted Answer

When labor supply is less than labor demand, it creates a tight labor market, and employers may need to increase wages to attract workers. Therefore, choice D is true. Choices A, B, and E are incorrect because less money is not needed to recruit, wages may need to increase, and this scenario is not necessarily ideal for employers. Choice C is also incorrect because a tight labor market means there are fewer available workers, making the labor market constricted rather than loose.

When Labor Supply Is Less Than Labor Demand Which of the Following