Unemployment implies that in the labor market
A) there is an excess supply of labor.
B) there is an excess demand for labor.
C) there are too few workers for the jobs available.
D) quantity demanded of labor exceeds quantity supplied.

Question

Quizplus · Accepted Answer

Unemployment implies that there is an excess supply of labor which means that there are more people looking for jobs than the available jobs. This results in a surplus of labor, and as employers have more choices, they can offer lower wages to attract workers. Hence, option A is the correct choice.

Unemployment Implies That in the Labor Market