according to the market theory of wage determination, under what circumstances will wages for a particular group be highest?

question 19 options:

when there is now demand for this type of labor

when supply is high and demand is low

when all things are equal

when demand is high and supply is low

The correct answer is D. When demand is high and supply is low

Explanation:

The market theory of wage determination proposes wages follow the same economical rules of demand and supply. This implies, that wages would increase in the case of high demand and low supply. This can be explained as employers would pay more if few individuals are able to perform a job (low supply), but these individuals are needed by a lot of employers (high demand). For example, if in a city there are a lot of hospitals and few doctors, hospitals would offer a higher wage to doctors so they can compete over other hospitals and get doctors to work for the hospital in this way.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.