Question 1

How may an increase in the demand for labour occur?

Accepted Answer

A)   When there is less productivity
B)   With a decrease in demand for the final product.
C)   With an increase in the revenue from selling the extra units.
D)   With an increase in the supply of labour.E) None of the above
F) A) and B)

Question 2

Efficiency wage theory suggests it may be efficient to pay more than the market wage

Accepted Answer

A) True 
 B)False  True

Question 3

Which is most likely to lead to a decrease in the wage rate?

Accepted Answer

A)   An increase in the demand for labour.
B)   An increase in the supply for labour.
C)   A decrease in the supply of labour.
D)   An increase in the demand for the productE) None of the above
F) A) and B) B

Question 4

Which is most likely to lead to an increase in the wage rate?

Accepted Answer

A)   An increase in the demand for labour.
B)   An increase in the supply for labour.
C)   A decrease in the demand for labour.
D)   A decrease in the demand for the productE) None of the above
F) B) and C)

Question 5

A minimum wage set below equilibrium will lead to excess supply of labour

Accepted Answer

A) True 
 B)False  False

Question 6

The reservation wage is the maximum amount an employee would need to accept a job

Accepted Answer

A) True 
 B)False

Question 7

The demand for labour depends on the demand for the final product; it is known as a _______ demand.

Accepted Answer

The answer of The demand for labour depends on the...

Question 8

On what does the supply of labour depend?

Accepted Answer

A)   The demand for labour.
B)   Benefit rates.
C)   The marginal revenue product.
D)   The marginal efficiency of capital.E) None of the above
F) B) and C)

Question 9

An increase in labour productivity increases the demand for labour.

Accepted Answer

A) True 
 B)False

Exam 6: Labour Market

How may an increase in the demand for labour occur?

Correct Answer
verified

Efficiency wage theory suggests it may be efficient to pay more than the market wage

Correct Answer
verified
True

Which is most likely to lead to a decrease in the wage rate?

Correct Answer
verified
B

Which is most likely to lead to an increase in the wage rate?

Correct Answer
verified

A minimum wage set below equilibrium will lead to excess supply of labour

Correct Answer
verified
False

The reservation wage is the maximum amount an employee would need to accept a job

Correct Answer
verified

The demand for labour depends on the demand for the final product; it is known as a _______ demand.

Correct Answer
verified

On what does the supply of labour depend?

Correct Answer
verified

An increase in labour productivity increases the demand for labour.

Correct Answer
verified

Exam 6: Labour Market

How may an increase in the demand for labour occur?

Correct AnswerverifiedShow Answer

Efficiency wage theory suggests it may be efficient to pay more than the market wage

Correct AnswerverifiedTrue

Which is most likely to lead to a decrease in the wage rate?

Correct AnswerverifiedB

Which is most likely to lead to an increase in the wage rate?

Correct AnswerverifiedShow Answer

A minimum wage set below equilibrium will lead to excess supply of labour

Correct AnswerverifiedFalse

The reservation wage is the maximum amount an employee would need to accept a job

Correct AnswerverifiedShow Answer

The demand for labour depends on the demand for the final product; it is known as a _______ demand.

Correct AnswerverifiedShow Answer

On what does the supply of labour depend?

Correct AnswerverifiedShow Answer

An increase in labour productivity increases the demand for labour.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified