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Figure: The Labor Market
-(Figure: The Labor Market) Look at the figure The Labor Market. What is the unemployment rate at an efficiency wage of $16?

Question

Use the following to answer questions:
Figure: The Labor Market 
-(Figure: The Labor Market) Look at the figure The Labor Market. What is the unemployment rate at an efficiency wage of $16?

Quizplus · Accepted Answer

At an efficiency wage of $16, the quantity of labor supplied (Qs) exceeds the quantity of labor demanded (Qd), creating a surplus of labor or unemployment. Using the graph, we can read the unemployment rate for this situation as approximately 27%. Therefore, the correct answer is C.

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