Question

The level of output produced when the labor market is in equilibrium iscalled:a. natural output.b. target output.c. product market equilibrium output.d. full-employment output.e. global production output

Answer 1

The correct answer is letter "D": full-employment output.

Step-by-step explanation:

Full-employment output or full-employment production is the situation when all available labor resources are used in their most efficient form, causing labor market equilibrium. Under this scenario, workers are in jobs where they are in their most productive use. Full employment takes into consideration highly-skilled and unskilled workers.

Answer 2

Answer: Option (d) is correct.

Step-by-step explanation:

Correct option: full-employment output.

Full employment output refers to the point where the labor market is in equilibrium. It means that all the available resources in the market are efficiently utilized.

At this point of production level economy is producing output at its higher level. This is the point where all the factors of production land, labor, capital are being used efficiently but this will stretched beyond their ability.