The figure below illustrates the two sides of the labour market. X Wage-setting curve No work done: wage is too low for adequate effort Employed Unemployed Employment, N Which of the following statements appropriately explains the figure above? O a. The labour market equilibrium reflects the idea that the firms sets the wage level that maximises the economy's employment level. O b. Immigration shifts the labour supply curve to the left. O c. The price-setting curve reflects the idea that the real wage consistent with the firm's markup is determined by the unemployment rate in the economy. O d. The labour market equilibrium is point Y. O e. The wage-setting curve reflects the idea that firms pay a wage higher than the worker's reservation option in order to increase labour productivity. Real wage Labour supply Average product of labour, A Price-setting curve

The figure below illustrates the two sides of the labour market. X Wage-setting curve No work done: wage is too low for adequate effort Employed Unemployed Employment, N Which of the following statements appropriately explains the figure above? O a. The labour market equilibrium reflects the idea that the firms sets the wage level that maximises the economy's employment level. O b. Immigration shifts the labour supply curve to the left. O c. The price-setting curve reflects the idea that the real wage consistent with the firm's markup is determined by the unemployment rate in the economy. O d. The labour market equilibrium is point Y. O e. The wage-setting curve reflects the idea that firms pay a wage higher than the worker's reservation option in order to increase labour productivity. Real wage Labour supply Average product of labour, A Price-setting curve

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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10 units. OD. 18 units. One of the following factors shifts the labor demand curve upward (increase labor demand)? Select one: t of O A. Price of outputs good increases (labor is used to make this output). O B. Decrease in workers coming into Kuwait. O C. Increase in workers coming into Kuwait. O D. Price of output good decreases (labor is used to make this output). A shift in labor supply is caused by Select one:
D2)
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