Question 1
Unemployment means that
◦ at the going wage rate, there are people who want to work but cannot find work.
◦ people are not willing to work at the going wage rate.
◦ there are some people who will not work at the going wage rate.
◦ there is excess demand in the labor market.
Question 2
Unemployment implies that in the labor market
◦ there is an excess supply of labor.
◦ there is an excess demand for labor.
◦ there are too few workers for the jobs available.
◦ quantity demanded of labor exceeds quantity supplied.