Job search is the process of matching workers with appropriate jobs. Option A is incorrect because firms pay higher than the competitive equilibrium wage when they want to attract more workers than the equilibrium level. Option B is incorrect because job search occurs when wages do not balance labour supply and labour demand, but it is not the failure of wages itself.

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Job Search

Question 38

Multiple Choice

Job search:

A) explains why firms pay higher than the competitive equilibrium wage
B) is due to the failure of wages to balance labour supply and labour demand
C) is the process of matching workers with appropriate jobs
D) all of the above

Correct Answer: