One difference between the labour market and markets for goods and services is
A) the demand in the labour market is inelastic; the demand for goods and services may be elastic or inelastic.
B) the supply of labour is perfectly inelastic because the quantity supplied is constant. The elasticity of supply for goods and services is different in different markets.
C) concepts of fairness arise more frequently in labour markets than in the markets for goods and services.
D) in the labour market, firms are suppliers while households are demanders.

Question

Quizplus · Accepted Answer

In the labour market, concepts of fairness such as minimum wage, equal pay for equal work, and working conditions arise more frequently because of the social implications of employment. In contrast, in the markets for goods and services, producers and consumers primarily focus on maximizing their own utility or profit, with less emphasis on fairness. Choices A, B, and D are incorrect because the labour market has its own demand and supply curves, and the elasticity of demand and supply can vary depending on the specific labour market and conditions. Furthermore, the supply of labour is not perfectly inelastic because people can choose to enter or exit the labour force. Finally, while it is true that firms are suppliers in the labour market, households are still the ones who demand labour by providing their time and skills.

One Difference Between the Labour Market and Markets for Goods