please explain all parts of the question 7 Which of the foll

please explain all parts of the question

7 Which of the following statements iS correct? (a) The labour market is in equillbrium if demand for labour at the current wage is equal to the size of the labour force. (b) The labour market is in equilibrium if Ihere is zero voluntary unemployment. (c) The labour market is in equilibrium it demand for labour at the current wage is equal to the number of workers willing to accept a job at the current wage. (d) It is impossible to increase the level of equilibrium unemployment by improving the match between the skils employers require and the skills workers have.

Solution

(C) the labor market is in equilibrium if demand for labor at the current wage is equal to the number of workers willing to accept a job at the current wage.

Wage rate determines the employment level. The workers work for the wages that they will earn at the the end of the day and they should be happy with the remuneration that they earn. There is always a particular wage rate that prevails in the market which is determined and this keeps on changing as per situation. So when the demand and the supply of labor equals at the determined wage rate market is said to be in equilibrium.