The no shirking constraint (NSC) curve never crosses the supply of labor curve, so
A) the market never reaches equilibrium.
B) there is always full employment in equilibrium.
C) there is always some unemployment in equilibrium.
D) the efficiency wage is always lower than the market-clearing wage.
E) the gap between the NSC curve and the supply of labor curve equals the difference between the efficiency wage and the market-clearing wage.
Question 2
The wage rate needed to generate enough earnings to reach the 4-person poverty line is often referred to as the working wage.
Indicate whether the statement is true or false
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