In the labor markets,workers determine the supply of labor and firms determine the demand.

Question

Quizplus · Accepted Answer

This statement is true. In a labor market, workers determine the supply of labor as they decide the quantity of work they are willing to provide at various wage rates. On the other hand, firms determine the demand for labor as they choose the amount of labor they need to produce their goods or services at various wage rates. The intersection of the supply and demand curves determines the equilibrium wage rate and quantity of labor in the market.

In the Labor Markets,workers Determine the Supply of Labor and Firms