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- Subject
- Labour Marketeconomics-mcqs › labour-market
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
If the real wage is set too high, the quantity of labor demanded is less than the quantity supplied, causing an imbalance. Equilibrium occurs only when labor demand equals labor supply. Therefore, the correct scenario is that labor demand equals labor supply.
More Labour Market MCQs
Practice related questions from the same subject.
- 1.How do unions typically contribute to widening the wage gap between union members and non-union workers?
- 2.Under which circumstance can unions enhance efficiency?
- 3.Which of the following reasons explains why companies might choose to pay efficiency wages?
- 4.Which of the following government actions is least likely to decrease the unemployment rate?
- 5.What happens if the wage rate is set above the competitive equilibrium wage for any reason?
- 6.What is the typical effect of a minimum wage law on employment levels?
- 7.Based on Figure 1, what is the unemployment rate?
- 8.Based on the UK Office of National Statistics, how is a husband classified if he stays at home to manage household duties?
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