Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 4: Problem 13

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

Short Answer

Expert verified
The "price" commonly called in the labor market is the Wage or Salary.

Step by step solution

01

Define the labor market and its components

The labor market is the market where workers offer their services and employers demand labor. There are two main components in the labor market: supply (the workers) and demand (the employers). As with any other market, there is a "price" associated with the product or service, which in this case is labor.
02

Identify the term used for "price" in the labor market

In the labor market, the term commonly used to refer to the "price" is called "wage" or "salary." The "price" at which labor is exchanged between employers and workers is based on the wage rate that employers are willing to pay, and the workers are willing to accept. So the answer is: The "price" commonly called in the labor market is the Wage or Salary.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

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

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

Other than the demand for labor, what would be another example of a "derived demand?"

Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?

Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. a. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. b. With the enactment of this price floor for fish, what are some of the likely unintended consequences in the market? c. Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free