Q
If, for any reason the wage is held above the competitive equilibrium wage?
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A
A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be unemployment
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B
B. Unions will likely strike and the wage will fall to equilibrium
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C
C. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
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D
D. The quality of workers in the applicant pool will tend to fall
Correct Answer:
A. A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be unemployment
