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JAMB Economics 2002 Question 24

Question 24

Labour Market

The equilibrium wage in an economy is determined by the

  1. A.public service
  2. B.workers' union
  3. C.rate of inflation
  4. D.supply and demand for labour
Show the answer and explanation

Answer: D (supply and demand for labour)

Explanation

Like any price, the equilibrium wage is set where the demand for labour equals the supply of labour.