If Individuals Are Paid the Wage at Which the Supply

Multiple Choice

If individuals are paid the wage at which the supply of labor is equal to the demand for labor,

A) no unemployment exists, and workers have no incentive to shirk.
B) no unemployment exists, and workers have an incentive to shirk.
C) some unemployment still exists, but workers have no incentive to shirk.
D) some unemployment still exists, but managers can tell whether or not workers are shirking.