#1
In labor economics, what does the term 'labor supply' refer to?
The quantity of labor demanded by firms
The quantity of goods supplied by workers
The quantity of labor hours workers are willing to work at different wage rates
The quantity of capital invested in labor-intensive industries
#2
Which of the following is NOT a factor influencing labor demand?
Wage rate
Productivity of labor
Price of substitute inputs
Government regulations on working hours
#3
What is the primary goal of labor unions?
To decrease wages for workers
To increase unemployment rates
To advocate for better wages and working conditions for workers
To eliminate job security
#4
Which of the following is NOT a type of unemployment?
Frictional unemployment
Structural unemployment
Cyclical unemployment
Voluntary unemployment
#5
What is the labor force participation rate?
The percentage of the total population that is of working age
The percentage of the labor force that is employed
The percentage of the working-age population that is in the labor force
The percentage of the labor force that is unemployed
#6
What is the term used to describe the situation when there is a surplus of labor at the current wage rate?
Equilibrium
Labor shortage
Labor surplus
Market saturation
#7
According to the theory of human capital, what is one way individuals can increase their earning potential?
Decreasing their level of education
Avoiding investing in skill development
Gaining relevant work experience
Working fewer hours
#8
What is the impact of an increase in the minimum wage on employment according to classical economic theory?
It increases employment as firms hire more workers
It decreases employment as firms reduce the number of workers they hire
It has no impact on employment
It leads to inflation
#9
What does the concept of 'reservation wage' represent?
The minimum wage a worker is willing to accept for a job
The wage a worker currently earns in their job
The maximum wage a worker can earn in a specific industry
The average wage in a particular region
#10
What is the 'efficiency wage theory' in labor economics?
The theory that higher wages lead to increased productivity
The theory that lower wages lead to increased motivation
The theory that wages are set based on the cost of living
The theory that firms pay higher wages to attract more skilled workers
#11
What concept in labor economics refers to the situation where workers are paid less than the value of their marginal product?
Monopsony
Minimum wage
Wage discrimination
Exploitation
#12
According to the theory of compensating wage differentials, why might a dangerous job offer higher wages?
Because firms prefer to pay higher wages for less dangerous jobs
Because workers demand higher wages to compensate for the risk
Because dangerous jobs are more profitable for firms
Because government regulations mandate higher wages for dangerous jobs
#13
What is 'discouraged workers' in the context of unemployment?
Workers who are actively seeking employment
Workers who have given up looking for a job and are no longer counted as unemployed
Workers who are employed but dissatisfied with their job
Workers who are employed part-time but prefer full-time employment
#14
According to the 'efficiency wage theory', what is a potential reason for paying wages above the market equilibrium?
To reduce turnover and increase worker loyalty
To decrease worker productivity
To lower production costs
To encourage workers to join labor unions
#15
What is 'insider-outsider theory' in labor economics?
The theory that workers with insider connections to employers receive better job opportunities
The theory that labor market outcomes are determined solely by government policies
The theory that wages are determined by the interaction of supply and demand in the labor market
The theory that workers who are not part of labor unions receive better wages and benefits