Category: Labour Market

A. Maximum wage the firm is willing to pay
B. tip necessary to get a waiter to reserve a table
C. minimum wage the worker is willing to accept
D. competitive equilibrium wage.

A. Will usually lead to more people employed
B. Will decrease total earning if the demand for labour is wage elastic
C. is illegal in a free market
D. will cause a shift in the demand for labour

A. Establishing worker training Programs
B. Establishing right-to-work laws
C. Reducing unemployment benefits
D. Establishing employment agencies
E. Raising the minimum wage

A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
B. Unions will likely Strike and the wage will fall to equilibrium
C. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
D. The quality of workers in the applicant pool will tend to fall

A. Frictional unemployment
B. Seasonal unemployment
C. Cyclical unemployment
D. Structural unemployment

A. Helps the economy move on the to Production Possibility Frontier
B. Helps shift the economy’s Production Possibility Frontier outwards
C. Helps the economy move along its Production Possibility Frontier
D. Helps the economy move inside the Production Possibility Frontier

A. 47.1 Percent
B. 65.9 Percent
C. 50.2 Percent
D. 70.2 Percent

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