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Chapter 4: Q. 13 (page 104)

What is the “price” commonly called in the labor

market?

Short Answer

Expert verified

Price is commonly called Wage.

Step by step solution

01

Labor Market

Usually informal market where workers find paying work, employers find willing workers, and where wage rates are determined are known as Labor market.

02

Step 2 

In labor markets, price is typically called a "wage."

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Most popular questions from this chapter

Are households demanders or suppliers in the

goods market? Are firms demanders or suppliers in the

goods market? What about the labor market and the

financial market?

Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received: a. a rise in demand b. a fall in demand c. a rise in supply d. a fall in supply

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

Select the correct answer. A price ceiling will usually shift:

a. demand

b. supply

c. both

d. neither

During a discussion several years ago on building a pipeline to Alaska to carry natural gas, the U.S. Senate passed a bill stipulating that there should be a guaranteed minimum price for the natural gas that would flow through the pipeline. The thinking behind the bill was that if private firms had a guaranteed price for their natural gas, they would be more willing to drill for gas and to pay to build the pipeline.

a. Using the demand and supply framework, predict the effects of this price floor on the price, quantity demanded, and quantity supplied.

b. With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in the market?

c. Suggest some policies other than the price floor that the government can pursue if it wishes to encourage drilling for natural gas and for a new pipeline in Alaska.
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