A surplus in the labor market indicates that the

Question

Quizplus · Accepted Answer

A surplus in the labor market means that there are more workers willing to work at a certain wage rate than there are available jobs. This leads to a situation where the quantity of labor supplied exceeds the quantity of labor demanded, creating a surplus. As a result, employers can be more selective and offer lower wages, resulting in unemployment among workers who are willing to work at the current wage rate but cannot find employment. Thus, option B is the correct choice.

A Surplus in the Labor Market Indicates That the