Labor market equilibrium is best characterized by:
A)A wage at which all people have a job.
B)A wage at which all workers are above the poverty level.
C)A wage at which the number of people willing to work equals the number of workers firms are willing to hire.
D)A minimum wage at which everyone is willing to work.
E)All workers receiving their ideal wage.

Question

Quizplus · Accepted Answer

Labor market equilibrium occurs when the number of workers willing to work at a certain wage equals the number of workers firms are willing to hire. At this equilibrium wage, there is no excess supply or demand for labor, and therefore, the labor market is in balance. The other choices are not necessarily indicative of labor market equilibrium, as they do not take into account the interplay between the number of workers and employers in the labor market.

Labor Market Equilibrium Is Best Characterized By