Asked by shawn christian on May 14, 2024
Verified
The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.
Labor Markets
Economic platforms where workers find paying work, employers find willing workers, and wage rates are determined.
Labor Supply
The total hours that workers are willing and able to work at a given wage rate, in a given time period.
Labor Demand
The total amount of workers that employers are willing and able to hire at a given wage rate within an economy.
- Gain an understanding of the theoretical foundations concerning labor markets, focusing on aspects such as supply, demand, and the determination of wages.
Verified Answer
RC
Roberto CastanedaMay 15, 2024
Final Answer :
True
Explanation :
The economic theory of labor markets, specifically the neoclassical model, posits that wages are determined by the interaction of labor supply (workers offering their skills and time) and labor demand (employers seeking to hire workers), with the equilibrium wage balancing the quantity of labor supplied and demanded.
Learning Objectives
- Gain an understanding of the theoretical foundations concerning labor markets, focusing on aspects such as supply, demand, and the determination of wages.
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