Why is the labor market called a matching ...

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Why is the labor market called a matching market?

Question 2

Government may make it possible
 A) to create a network externality.
  B) to find 'winners' in the stock market.
  C) for a firm to become a monopoly.
  D) all of these choices.

[Jadwiga9]

Answer to Question 1

A labor market is a matching market, where the value a relationship creates will depend heavily on how well employees and employers meet each others' expectations. In few other markets do individual attributes of buyers and sellers play such important roles. Either party can initiate the unmaking of a match, but only at a cost.

Answer to Question 2

C