Unemployment implies that in the labor market there is
A) an excess supply of available jobs.
B) a shortage in the demand for labor.
C) a shortage in the supply of labor.
D) an excess demand for labor.

Question

Quizplus · Accepted Answer

Unemployment implies that there is a shortage in the demand for labor, meaning that there are not enough job opportunities available for all those seeking employment. Option A and D suggest there is either an excess supply or an excess demand for labor, which is not the case in a situation of unemployment. Option C suggests there is a shortage in the supply of labor, which is not in line with the definition of unemployment.

Unemployment Implies That in the Labor Market There Is