Question

Which of the following best explains one of the restrictions on producers that keep the labor market from being a completely free market? A. The government hires a lot of productive workers. B. Workers aren't always available where they're needed. C. The reserve wage is often higher than the minimum wage. D. Workers can't always get the education needed to get better jobs.

Answer 1

The correct answer is B) Workers aren't always available where they're needed.

The statement that best explains one of the restrictions on producers that keep the labor market from being a completely free market is that "Workers aren't always available where they're needed."

This happens because when a company needs a specifically qualified worker, probably he/she is already hired in another company and is not available at the moment. The ideal would be that when a company needs a worker, it could be found immediately as if it were a product, but it isn't. Another restriction could be labor unions that represent the interests of the workers in a negotiation.