Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The market process ensures that, when all transactions are voluntary, resources get allocated to the use where they are valued the most.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-The market process ensures that, when all transactions are voluntary, resources get allocated to ​the use where they are valued the most.

Quizplus · Accepted Answer

This is a fundamental principle of free market economics. The voluntary transactions between buyers and sellers ensure that resources are allocated efficiently to the most valued use. This is commonly referred to as the "invisible hand" of the market.

​Figure 53

Figure 53