Which of the following statements does not accurately describe the market for labor?
A)The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
B)Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
C)Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)Discrimination by employers against a group of workers may artificially lower wages for that group.

Question

Quizplus · Accepted Answer

This statement is inaccurate. Firms are willing to pay more for better-educated workers only if they are in short supply, which would drive up their equilibrium wage. If there is an excess supply of a certain type of worker, firms will pay less for them as their equilibrium wage will be lower.

Which of the Following Statements Does Not Accurately Describe the Market