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Chapter 4: Problem 13

What is the "price" commonly called in the labor market?

Short Answer

Expert verified
In the labor market, the term commonly used for "price" is "wages" or "salary." This refers to the amount paid by employers in exchange for the services provided by workers.

Step by step solution

01

Define the Labor Market

The labor market is the platform where workers offer their services for wages paid by employers. It is where individuals seeking jobs interact with employers looking for workers who can provide services in the labor-related tasks.
02

Understand the Term "Price" in Labor Market

In the labor market, the term "price" refers to the amount paid by employers in exchange for the services provided by workers. This amount is usually decided by supply and demand factors involving the skill level and productivity of the labor force.
03

Identify the Common Term for "Price" in the Labor Market

The "price" commonly called in the labor market is known as "wages" or "salary."

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Most popular questions from this chapter

Under what circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living raise be a binding price floor?

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?

Identify each of the following as involving either demand or supply. Draw a circular flow diagram and label the flows A through F. (Some choices can be on both sides of the goods market.) a. Households in the labor market b. Firms in the goods market c. Firms in the financial market d. Households in the goods market e. Firms in the labor market f. Households in the financial market

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

Select the correct answer. A price floor will usually shift: a. demand b. supply c. both d. neither Illustrate your answer with a diagram.
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