Workers in an industry are probably overpaid if
A) firms want to hire more workers but cannot ?0??7?nd people willing to work.
B) firms need to layoff workers because it cannot afford to cover costs.
C) firms are hiring the optimal amount of workers and there is no excess supply of labor in the market.
D) firms are unable to keep their most skilled workers.
E) no new workers are interested in working in that industry.

Question

Quizplus · Accepted Answer

If firms need to layoff workers because they cannot afford to cover costs, it suggests that the wages being paid to the workers are too high for the industry. This indicates that workers are overpaid.

Workers in an Industry Are Probably Overpaid If