Final answer:
The labor market is a market where equilibrium wage and employment level are determined by the intersection of labor supply and labor demand, with wages influenced by worker productivity.
Step-by-step explanation:
The labor market is a concept in economics where the equilibrium wage and employment level are determined at the intersection of labor supply and labor demand. In a competitive labor market, employers are seen as demanders of labor and workers are the suppliers.
The supply and demand for labor function similarly to that of goods. According to the law of demand, a higher wage leads to a decrease in the quantity of labor demanded, and a lower wage leads to an increase. Conversely, the law of supply indicates that a higher price for labor leads to a higher quantity of labor supplied, and a lower price leads to a lower quantity supplied. Equilibrium in the labor market is achieved where the demand for labor equals the supply.
Productivity plays a significant role in determining wages, as workers are often paid by the value of what they produce, a concept known as derived demand. Therefore, in response to the question, the labor market is one where labor supply and labor demand alone determine wages and employment, making option 'C' the most accurate.