Labor Economics Quiz

Unemployment resulting from a mismatch between the skills possessed by workers and the requirements of available jobs.

It indicates the proportion of the population that is either employed or actively seeking employment.

The change in total cost resulting from hiring an additional worker.

When certain groups of people are channeled into specific occupations or industries, they may face lower wages compared to others.

The theory suggests that offering higher wages than the market equilibrium can incentivize workers to perform better and stay with the company longer, leading to increased productivity.

Occurs when individuals who are willing and able to work full-time can only find part-time or temporary employment, or are working in jobs below their skill level.

A mandated wage floor set by governments to protect workers from being paid excessively low wages.

A market structure where there's only one buyer for a particular type of labor.

When a person is working in a job that requires fewer skills or qualifications than they possess.

The amount of compensation offered for labor directly influences the willingness of individuals to supply their labor.

The intangible assets embodied in individuals that contribute to their productivity.

As fewer people are actively seeking work, the unemployment rate tends to rise.

It graphically represents the distribution of income among individuals or households within an economy.

The separation of workers into different job types or occupations, often based on characteristics like gender, race, or education.

Perfect competition implies free entry and exit for firms without any restrictions.

Benefits provided by employers, such as healthcare coverage, that add value to a job beyond the wage or salary.

A compensation method where employees are paid according to the number of units they produce or tasks they complete.

Automation often leads to a reduction in demand for low-skilled labor, which can suppress wages in this segment.