Which of the following is not a consequence of above-equilibrium wages in a labor market?
A)a surplus of labor
B)unemployment
C)more unionized jobs
D)All of the above are consequences of above-equilibrium wages.

Question

Quizplus · Accepted Answer

Above-equilibrium wages typically lead to a surplus of labor (option A) and unemployment (option B) as employers demand less labor at higher wages and workers supply more labor at higher wages. Option C (more unionized jobs) is not a direct consequence of above-equilibrium wages, as unionization rates depend on various factors such as labor laws, union organizing tactics, and employer resistance to unions. However, it is possible for unions to negotiate higher wages and benefits for their members that exceed the equilibrium level for similar non-unionized jobs.

Which of the Following Is Not a Consequence of Above-Equilibrium