Category: Labour Market

A. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities
B. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law
C. Paying the lowest possible wage is always the most efficient (Profitable)
D. Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort

A. Unemployment due to unions
B. Unemployment due to efficiency wages
C. Frictional Unemployment
D. Unemployment due to minimum-wage laws

A. Wages are a small proportion of total costs
B. Demand for the final product is price elastic
C. It is easy to replace labour
D. Capital is a good substitute for labour

A. Marginal revenue = marginal product
B. Marginal cost = marginal product
C. Marginal revenue product = average cost of labour
D. Marginal revenue product = marginal cost of labour

A. unemployment benefits increase
B. Income tax increases
C. More training is available for the unemployed
D. Geographical immobility increases

A. A lower equilibrium wage and lower quantity of labour
B. A lower equilibrium wage and higher quantity of labour
C. A higher equilibrium wage and higher quantity of labour
D. A higher equilibrium wage and lower quantity of labour

A. increasing the wage in the Unionized sector, Which may create a decrease in the supply of workers in the non-unionized sector
B. Increasing the demand for workers in the Unionized sector
C. decreasing the demand for workers in the Unionized sector
D. Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector

A. 3.2 Percent
B. 5.7 Percent
C. 5.8 Percent
D. Not Enough

A. Raise the wage for insiders above the competitive equilibrium
B. Lower the wage of local outsiders
C. Offset the market power of a large firm that is the dominant employer in a region
D. Threaten a strike but don’t actually follow through so there are not lost hours of work

A. Structural Unemployment
B. Unemployment due to efficiency wages
C. Unemployment due to unions
D. Frictional Unemployment