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5. Which of the following is a sign of a well-functioning labor market? A. A high...

5. Which of the following is a sign of a well-functioning labor market?

A.

A high degree of labor mobility (job losses and job gains).

B.

A constant unemployment rate.

C.

Equal pay for all workers.

D.

Equal pay in all regions.

E.

All workers have a college education.

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Answer #1

A high degree of labour mobility in the labour market is a sign of a well-functioning labor market. So it's option A because then only the problems regarding structural, frictional unemployment can be resolved to some extent. In it takes into account of the other problems of unemployment also.

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