QQuestionEconomics
QuestionEconomics
Identify the correct statement from the following.
a. The labor market exhibits rapid adjustment to changes in supply or demand conditions.
b. Wages offered for a particular type of job are the same across the country.
c. The labor market usually yields a range of wages rather than a unique equilibrium.
d. Wages exhibit frequent and prompt changes in response to changes in market conditions.
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Answer
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Step 1: To identify the correct statement about the labor market, we need to understand the concept of wage determination in labor markets.
Labor markets are not always perfectly competitive, meaning that wages may not adjust instantly to changes in supply and demand conditions.
Step 2: Let's examine each statement:
a. The labor market does not always exhibit rapid adjustment to changes in supply or demand conditions. Wages can be sticky, meaning they may change slowly or not at all in response to short-term fluctuations in supply and demand. b. Wages offered for a particular type of job are not the same across the country. This statement ignores the role of regional differences, cost of living, and other factors that influence wages. c. This statement is generally true. The labor market usually yields a range of wages rather than a unique equilibrium due to various factors, such as differences in skills, education, and labor market imperfections. d. Wages do not always exhibit frequent and prompt changes in response to changes in market conditions. As mentioned earlier, wages can be sticky and may not adjust quickly to short-term fluctuations in supply and demand.
Final Answer
The correct statement is c. The labor market usually yields a range of wages rather than a unique equilibrium.
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