A surplus of workers occurs
A) when the wage rate exceeds the equilibrium wage rate.
B) when the wage rate is less than the equilibrium wage rate.
C) at the equilibrium wage rate.
D) whenever there is a shortage of goods.
E) whenever there is a surplus of goods.

Question

Quizplus · Accepted Answer

A surplus of workers, also known as unemployment, occurs when the wage rate exceeds the equilibrium wage rate because employers are less willing to hire at higher wages, leading to more workers than available jobs.

A Surplus of Workers Occurs