Final answer:
The true statement about the labor market is that workers determine the supply of labor, while businesses determine the demand for labor. The labor market is influenced by the interplay between supply and demand, and government policies can affect both sides by altering job qualifications or providing subsidies. The correct option is a. workers determine the supply of labor, and businesses determine the demand for labor.
Step-by-step explanation:
The correct statement about the labor market is: a. workers determine the supply of labor, and businesses determine the demand for labor. The labor market operates on the principles of supply and demand. Workers provide the supply of labor by offering their services in exchange for wages, while businesses create the demand for labor by looking for employees to perform various tasks and roles. The productivity of labor helps in determining wages, as workers are generally paid by the value of what they produce.
Government policies can affect both the supply and demand sides of the labor market. For example, if the government increases qualifications for jobs, fewer workers may be qualified, reducing the labor supply at any given wage. Conversely, if training is subsidized, the supply of labor might increase. Policies related to unemployment benefits, child care, and welfare also influence the labor supply by changing the relative desirability of working.
The correct option is a. workers determine the supply of labor, and businesses determine the demand for labor.