Which of the following factors is most likely to increase labor supply?
● A) Increase in wages
● B) Decrease in working hours
● C) Increase in non-wage income
● D) Increase in the cost of education
What is the primary focus of labor economics?
● A) The study of international trade
● B) The analysis of capital markets
● C) The study of labor market dynamics
● D) The impact of government policies on inflation
Which of the following is an example of human capital?
● A) A factory building
● B) A computer
● C) Education and skills of workers
● D) A company's stock of raw materials
The substitution effect of a wage increase typically leads to:
● A) More leisure time
● B) Less labor supply
● C) More labor supply
● D) No change in labor supply
What does the term "labor force participation rate" refer to?
● A) The percentage of the working-age population that is employed
● B) The percentage of the working-age population that is either employed or actively
seeking employment
● C) The unemployment rate
● D) The percentage of part-time workers in the labor force
Which of the following best describes "frictional unemployment"?
● A) Unemployment caused by technological changes
● B) Unemployment due to a recession
● C) Short-term unemployment that occurs while workers search for jobs
● D) Long-term unemployment resulting from structural changes in the economy
In a competitive labor market, the equilibrium wage is determined by:
● A) Government intervention
● B) The bargaining power of unions
● C) The interaction of labor demand and labor supply
● D) The minimum wage law
The concept of "compensating wage differentials" refers to:
● A) Wage differences due to differences in the cost of living
● B) Wage differences due to differences in job characteristics
● C) Wage differences due to discrimination
● D) Wage differences due to education levels
What is the "marginal product of labor"?
● A) The total output produced by all workers
● B) The additional output produced by hiring one more worker
● C) The average output produced by each worker
● D) The total revenue generated by all workers
What is "economic rent" in the context of labor economics?
● A) The payment for the use of land
● B) The payment to a factor of production in excess of its opportunity cost
● C) The cost of renting equipment
● D) The salary paid to a worker
Which of the following is a characteristic of a monopsony labor market?
● A) Many employers and many workers
● B) One employer and many workers
● C) Many employers and one worker
● D) One employer and one worker
In the labor market, what happens when the minimum wage is set above the
equilibrium wage?
● A) It leads to full employment
● B) It creates a shortage of labor
● C) It causes unemployment
● D) It has no effect on employment
Which of the following is an example of "disguised unemployment"?
● A) A factory worker who is laid off
● B) A part-time worker who wants to work full-time
● C) A worker who is employed but not fully utilized in terms of skills or hours
● D) A worker who is actively seeking a job
The concept of "efficiency wages" suggests that:
● A) Higher wages lead to lower productivity
● B) Higher wages can lead to higher productivity
● C) Wages have no effect on productivity
● D) Wages should always be set at the minimum level
What is "collective bargaining"?
● A) Negotiations between individual workers and employers
● B) Negotiations between unions and employers on behalf of workers
● C) Government intervention in wage-setting
● D) The process of setting minimum wage laws
Which of the following best describes "labor mobility"?
● A) The ability of workers to move between jobs, industries, or locations
● B) The rate of job turnover within a company
● C) The willingness of employers to hire workers from other regions
● D) The frequency of job training programs
What is "structural unemployment"?
● A) Unemployment due to the natural rate of turnover in the labor market
● B) Unemployment caused by a mismatch between the skills of workers and the
requirements of jobs
● C) Unemployment that occurs during economic expansions
● D) Unemployment due to seasonal changes in demand
Which of the following policies is most likely to reduce unemployment?
● A) Raising interest rates
● B) Increasing taxes
● C) Implementing job training programs
● D) Reducing government spending
What is "labor demand"?
● A) The total number of workers seeking employment
● B) The number of jobs available in the economy
● C) The relationship between the wage rate and the quantity of labor that employers
are willing to hire
● D) The demand for products produced by labor
Which of the following is a characteristic of a perfectly competitive labor market?
● A) Workers have bargaining power over employers
● B) Employers are wage setters
● C) Many employers and many workers with no single entity able to influence wages
● D) A few large employers dominate the market
What is "labor market discrimination"?
● A) The preference of employers to hire younger workers
● B) Wage differences between workers due to non-economic factors such as race,
gender, or ethnicity
● C) The legal protection of certain groups in the labor market
● D) The practice of paying workers based on performance
Which of the following is an example of "on-the-job training"?
● A) Attending a university course
● B) Learning new skills while performing tasks at work
● C) Taking online certification courses
● D) Participating in a job search workshop
What is the "income effect" of a wage increase?
● A) Workers will supply more labor as their wages increase
● B) Workers will supply less labor because they can afford more leisure
● C) Workers will demand higher wages
● D) Workers will spend more of their income on goods and services
Which of the following is an impact of labor unions on wages?
● A) They generally lead to lower wages
● B) They have no effect on wages
● C) They generally lead to higher wages for unionized workers
● D) They decrease wage equality across industries
What is "reservation wage"?
● A) The minimum wage legally required by the government
● B) The wage at which a worker is indifferent between working and not working
● C) The wage paid to employees in the public sector
● D) The average wage in the economy
Which of the following is a reason for wage differentials?
● A) Equal access to education and training
● B) Differences in job conditions and responsibilities
● C) Government regulation of wages
● D) Uniformity in skill levels across workers
The concept of "labor market segmentation" refers to:
● A) The division of the labor market into distinct sub-markets with different
characteristics
● B) The integration of all workers into a single labor market
● C) The separation of skilled and unskilled workers
● D) The equal distribution of wages across all workers
What is the "backward-bending labor supply curve"?
● A) A labor supply curve that shows an increase in labor supply as wages increase
indefinitely
● B) A labor supply curve that bends backward after a certain wage level, indicating a
decrease in labor supply as wages increase
● C) A labor supply curve that slopes downward
● D) A labor supply curve that shows no relationship between wages and labor supply
Which of the following is an effect of globalization on labor markets?
● A) Decreased competition for jobs
● B) Increased wage equality across countries
● C) Greater job opportunities and wage disparities
● D) Reduced labor mobility
Which of the following is an example of "cyclical unemployment"?
● A) A factory worker losing a job during a recession
● B) A teacher being unemployed during summer break
● C) A worker losing a job due to technological advancements
● D) A worker being laid off due to a mismatch of skills
