alleryStart learning →True or false: labor markets
Exercise and reference answers
- Questions
- Statement is true
- Yes
- Statement
- Most household income is labor income.
- Statement is true
- No
- Statement
- A union wage sits below the equilibrium wage.
- Statement is true
- Yes
- Statement
- A union wage above equilibrium creates excess supply.
- Statement is true
- Yes
- Statement
- Firms may substitute capital for costly labor.
- Statement is true
- No
- Statement
- Wages are set in product markets, not factor markets.
- Instructions
- Tap True or False for each statement.
Explanation
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_