Category: Labour Market

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

A. The natural rate of unemployment
B. cyclical unemployment
C. efficiency wage unemployment
D. frictional unemployment

A. Frictional Unemployment would fall
B. The official unemployment rate would probably understate true unemployment
C. The official unemployment rate would probably overstate true unemployment
D. There would be no impact on the official unemployment rate
E. None of these answers