#1
In labor economics, what does the term 'labor supply' refer to?
The quantity of labor hours workers are willing to work at different wage rates
ExplanationQuantity of labor hours workers are willing to work at various wage rates
#2
Which of the following is NOT a factor influencing labor demand?
Government regulations on working hours
ExplanationGovernment regulations on working hours
#3
What is the primary goal of labor unions?
To advocate for better wages and working conditions for workers
ExplanationAdvocating for better wages and working conditions
#4
Which of the following is NOT a type of unemployment?
Voluntary unemployment
ExplanationVoluntary unemployment
#5
What is the labor force participation rate?
The percentage of the working-age population that is in the labor force
ExplanationPercentage of working-age population in the labor force
#6
What is the term used to describe the situation when there is a surplus of labor at the current wage rate?
Labor surplus
ExplanationSurplus of labor at current wage rate
#7
According to the theory of human capital, what is one way individuals can increase their earning potential?
Gaining relevant work experience
ExplanationGaining relevant work experience
#8
What is the impact of an increase in the minimum wage on employment according to classical economic theory?
It decreases employment as firms reduce the number of workers they hire
ExplanationDecreases employment as firms reduce the number of workers hired
#9
What does the concept of 'reservation wage' represent?
The minimum wage a worker is willing to accept for a job
ExplanationMinimum wage a worker is willing to accept for a job
#10
What is the 'efficiency wage theory' in labor economics?
The theory that higher wages lead to increased productivity
ExplanationHigher wages lead to increased productivity
#11
What concept in labor economics refers to the situation where workers are paid less than the value of their marginal product?
Exploitation
ExplanationWorkers paid less than the value of their marginal product
#12
According to the theory of compensating wage differentials, why might a dangerous job offer higher wages?
Because workers demand higher wages to compensate for the risk
ExplanationWorkers demand higher wages to compensate for risk
#13
What is 'discouraged workers' in the context of unemployment?
Workers who have given up looking for a job and are no longer counted as unemployed
ExplanationWorkers who have given up looking for a job
#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
ExplanationReducing turnover and increasing worker loyalty
#15
What is 'insider-outsider theory' in labor economics?
The theory that workers with insider connections to employers receive better job opportunities
ExplanationWorkers with insider connections receive better job opportunities