#1
Which of the following is a characteristic of monopsony?
One buyer, many sellers
ExplanationMonopsony is a market structure where there is only one buyer but multiple sellers.
#2
What does the term 'reservation wage' refer to in labor economics?
The minimum wage a worker is willing to accept
ExplanationReservation wage is the lowest wage a worker is willing to accept before choosing unemployment.
#3
Which of the following is a characteristic of a perfectly competitive labor market?
Firms and workers are price takers
ExplanationPerfectly competitive labor markets involve firms and workers accepting market-determined wages.
#4
What is the term used to describe a situation where there are more job seekers than available jobs?
Structural unemployment
ExplanationStructural unemployment arises when there is a mismatch between the skills of job seekers and the available job opportunities.
#5
Which of the following is NOT a factor that can lead to wage differentials among workers?
Gender
ExplanationGender is not a relevant factor in causing wage differentials among workers.
#6
In labor market analysis, what does the term 'discouraged worker' refer to?
A worker who has given up looking for a job due to lack of success
ExplanationA discouraged worker has stopped seeking employment due to repeated failures in job search.
#7
What is the primary function of a labor union?
To negotiate better wages and working conditions for members
ExplanationLabor unions aim to secure improved wages, working hours, and conditions through collective bargaining.
#8
What is the concept of 'frictional unemployment'?
Unemployment caused by people transitioning between jobs
ExplanationFrictional unemployment results from the time and effort it takes for individuals to move between jobs.
#9
Which of the following is NOT a determinant of labor supply?
Government regulations
ExplanationGovernment regulations typically do not directly determine the quantity of labor supplied by individuals.
#10
What is the term used to describe the situation where a worker's productivity decreases over time due to repetitive tasks?
Labor fatigue
ExplanationLabor fatigue refers to reduced productivity caused by the monotony and repetition of tasks.
#11
According to the theory of compensating wage differentials, what factors may lead to higher wages for certain jobs?
Job safety risks and undesirable working conditions
ExplanationCompensating wage differentials suggest higher pay for jobs with increased risks or undesirable conditions.
#12
What is 'efficiency wages' theory in labor economics?
The theory that higher wages reduce worker turnover and increase productivity
ExplanationEfficiency wages propose that paying higher than market wages can lead to increased productivity and reduced turnover.
#13
What is the term used to describe the difference between a worker's actual wage and their marginal productivity?
Surplus value
ExplanationSurplus value is the excess of a worker's actual wage over the wage corresponding to their marginal productivity.
#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?
Compensating wage differential
ExplanationCompensating wage differentials represent the wage difference compensating workers for accepting less desirable jobs.
#15
What does the term 'efficiency wages' refer to?
Wages set above the market equilibrium to increase worker productivity
ExplanationEfficiency wages involve paying workers above market rates to enhance their productivity.