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Question
refer to the following diagram of a perfectly competitive labor market:
At wage rate W1 there is an:
a. excess supply of labor and the wage rate will fall
b. excess supply of labor and the wage rate will rise
c. excess demand for labor and the wage rate will fall
d. excess demand for labor and the wage rate will rise
Answer
This answer is hidden. It contains 1 characters.
Related questions
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a. firms may lay off workers in return for granting then an insurance policy against wage reductions
b. firms may pay workers a lower wage in return for granting them an insurance policy against layoff
c. firms have a higher wage bill in recessions than during periods of economic expansion
d. firms have an incentive to contract with workers to pay them the going market wage
Q:
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Which one of the following is a true statement?
a. Higher levels of education are associated with higher levels of structural unemployment
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c. Historically, technological change has created more jobs than it has made obsolete
d. During a recession, most unemployment is structural unemployment
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In the short run, the aggregate quantity supplied may exceed the full-employment level of output. This is because as the price level rises:
a. firms mistake lower real wage rates for lower money wage rates and therefore increase employment beyond the profit-maximizing level
b. firms mistake lower money wage rates for lower real wage rates and therefore increase employment beyond the profit-maximizing level
c. workers respond to falling real wage rates by working more hours, since the income effect outweighs the substitution effect
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Q:
If a drop in aggregate demand causes a recession, then over this range of real output the aggregate supply curve is: a. vertical b. downward sloping c. upward sloping d. inelastic
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Compared to the 1960s, the natural rate of unemployment in the 1970s and 1980s was:
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b. higher, because of the failure of public policies to reduce it
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Q:
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a. must be 0%
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Q:
Since 1960, the employment-population ratio has:
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Q:
To determine the unemployment rate, each month the government:
a. collects data from a survey of about 60,000 households nationwide
b. collects data from a survey of about 500,000 firms nationwide
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Q:
(World of Work 17-1) Empirical studies of the productivity of public capital indicate:
a. a consensus that public capital is approximately half as productive as private capital
b. a consensus that public capital is approximately twice as productive as private capital
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Q:
Suppose productivity increases by 5% in industry X and 2% in industry Y. Further suppose the demand for X has fallen while the demand for Y has increased. If economy-wide productivity and the average wage each rise by 3%, we should expect that:
a. output and employment in X will increase relative to Y
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If nonunion workers in a given occupation are paid $16 per hour while union workers receive $20 per hour, the pure union wage advantage is: a. 20% b. 25% c. 80% d. more information is required
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Which one of the following is a true statement?
a. The union wage advantage narrows during recessions
b. There is no union wage advantage for African American males
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c. repeals the Davis-Bacon Act
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b. craft unions limit the access of nonunion workers to apprenticeship positions
c. state governments require workers in many jobs to obtain a license
d. the so-called glass ceiling (a form of discrimination) prevents women from moving into certain high-paying managerial jobs
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d. large firms are more likely to discriminate against women and minorities