Chapter 8 (8.3) Flashcards
According to the labor supply curve, as the real wage rises,
employers will not change the number of jobs they provide.
workers are willing to provide more labor.
employers are willing to provide more jobs.
employers are willing to provide fewer jobs.
workers are willing to provide less labor.
workers are willing to provide more labor
According to the labor demand curve, as the real wage rises,
workers are willing to provide less labor.
employers are willing to provide more jobs.
workers are willing to provide more labor.
employers will not change the number of jobs they provide.
employers are willing to provide fewer jobs.
employers are willing to provide fewer jobs.
All else being constant, an increase in labor supply will cause
the real wage to decrease and the amount of labor employed to increase.
None of the above are correct.
the real wage to increase and the amount of labor employed to decline.
both the real wage and the amount employed to increase.
both the real wage and the amount of labor employed to decrease.
the real wage to decrease and the amount of labor employed to increase.
According to the labor-supply-and-demand model, if the economy enters a recession then the demand for labor shifts to the left.
true
false
true
According to the job-rationing explanation of unemployment, if unemployment occurs,
the real wage will not fall to the equilibrium level.
the real wage will fall to the equilibrium level.
the number of people employed will increase to the equilibrium level.
the real wage will increase to the equilibrium level.
the number of people employed will decrease to the equilibrium level.
the real wage will not fall to the equilibrium level.
Why would a firm elect to pay the efficiency wage?
Because they are required to do so by law.
In order to reduce job turnover.
Because this is the only wage people are willing to work for.
All firms have an incentive to pay the lowest wage possible.
All of the above are correct.
in order to reduce job turnover
Which of the following will cause the natural unemployment rate to decline?
increasing unemployment compensation
increasing the bargaining strength of labor
increasing welfare payments
increasing the minimum wage
reducing unemployment compensation
reducing unemployment compensation
Higher unemployment caused by higher unemployment compensation can be explained by:
The discouraged-worker theory
The efficiency-wage theory
the job-search theory
the insider-outsider theory
The minimum-wage theory
the job search theory
Job rationing may occur due to:
All of the above are correct.
a minimum wage
efficiency wages
the influence of insiders
market imperfections and regulations
all of the above
