Asked by Analise Johnson on Jul 17, 2024
Verified
In an ideal labor market, wages would adjust to balance the quantity of labor supplied and the quantity of labor demanded, ensuring that all workers are always fully employed.
Ideal Labor Market
An ideal labor market is a theoretical construct where there is perfect competition, equal access to information, and no barriers to entry or exit, leading to efficient employment outcomes.
- Understand that unemployment rates cannot hit zero because of several reasons, including the processes involved in job searching and matching.
Verified Answer
LA
Leena AlayedhJul 21, 2024
Final Answer :
True
Explanation :
In an ideal labor market, the theory of supply and demand suggests that wages would adjust to ensure that the quantity of labor supplied by workers matches the quantity of labor demanded by employers, theoretically leading to full employment.
Learning Objectives
- Understand that unemployment rates cannot hit zero because of several reasons, including the processes involved in job searching and matching.