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Chapter 4: Q13 (page 104)

What is the “price” commonly called in the labor

market?

Short Answer

Expert verified

Price in Labor Market is 'Wages or Salaries' paid by firms & received by workers.

Step by step solution

01

Labor Market - basic concept 

Labor is demanded by firms to produce goods & services, further sold for profit.

Labor is supplied by labourers workers, to earn return on their factor services provided

02

Labor Price Concept 

Price of labor is the factor payment paid by firms & factor income received by workers, ie wages and salaries.

Labor demand by firms is inversely related to its price paid ie wages, and labor supply is directly related to price received ie wages.

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Most popular questions from this chapter

Whether the product market or the labor market, what happens to the equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply, and decrease in supply.

Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received:

a. rise in demand

b. a fall in demand

c. a rise in supply

d. a fall in supply

What would be a sign of a shortage in financial markets?

Name some factors that can cause a shift in the

demand curve in labor markets.

In the labor market, what causes a movement along the supply curve? What causes a shift in the supply curve?
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