#1
Which of the following is a characteristic of monopsony?
One seller, many buyers
Many sellers, one buyer
Many sellers, many buyers
One buyer, many sellers
#2
What does the term 'reservation wage' refer to in labor economics?
The minimum wage a worker is willing to accept
The maximum wage a worker is willing to accept
The wage offered by employers
The wage set by government regulations
#3
Which of the following is a characteristic of a perfectly competitive labor market?
Firms have the power to set wages
Workers have the power to set wages
Firms and workers are price takers
Firms and workers have monopoly power
#4
What is the term used to describe a situation where there are more job seekers than available jobs?
Full employment
Structural unemployment
Cyclical unemployment
Labor surplus
#5
Which of the following is NOT a factor that can lead to wage differentials among workers?
Education level
Geographic location
Gender
Age
#6
In labor market analysis, what does the term 'discouraged worker' refer to?
A worker who is currently employed
A worker who has given up looking for a job due to lack of success
A worker who is actively seeking employment
A worker who is not qualified for any available jobs
#7
What is the primary function of a labor union?
To maximize employer profits
To minimize employee benefits
To negotiate better wages and working conditions for members
To increase competition among workers
#8
What is the concept of 'frictional unemployment'?
Unemployment caused by changes in technology
Unemployment caused by a lack of aggregate demand
Unemployment caused by people transitioning between jobs
Unemployment caused by government policies
#9
Which of the following is NOT a determinant of labor supply?
Wages
Education level
Government regulations
Preferences and tastes
#10
What is the term used to describe the situation where a worker's productivity decreases over time due to repetitive tasks?
Labor fatigue
Diminishing returns
Technological unemployment
Learning curve
#11
According to the theory of compensating wage differentials, what factors may lead to higher wages for certain jobs?
Job complexity and high demand
Job simplicity and low demand
Job safety risks and undesirable working conditions
Job stability and ease of access
#12
What is 'efficiency wages' theory in labor economics?
The theory that higher wages lead to greater worker satisfaction
The theory that lower wages lead to higher productivity
The theory that higher wages reduce worker turnover and increase productivity
The theory that lower wages increase worker morale and motivation
#13
What is the term used to describe the difference between a worker's actual wage and their marginal productivity?
Surplus value
Residual income
Compensating wage differential
Wage gap
#14
What is the term for the difference between a worker's actual wage and the wage they could earn in their next best alternative job?
Economic rent
Opportunity cost
Reservation wage
Compensating wage differential
#15
What does the term 'efficiency wages' refer to?
Wages set above the market equilibrium to increase worker productivity
Wages set below the market equilibrium to reduce labor costs
Wages set based on workers' efficiency
Wages set by government regulations