Economics MCQs

Page No. 232

Union might increase efficiency in the case Where they ?


aRaise the wage for insiders above the competitive equilibrium


bLower the wage of local outsiders


cOffset the market power of a large firm that is the dominant employer in a region


dThreaten a strike but don’t actually follow through so there are not lost hours of work



Which of the following is an example of a reason why firms might pay efficiency wages ?


aAt equilibrium wages workers sleep when the boss is not looking because workers are not deeply concerned about being fired


bAt equilibrium wages workers often quit to find better jobs.


cAt equilibrium wages, workers cannot afford a healthy diet so they fall asleep at work due to a lack of energy


dAll of these answers


View Answer All of these answers

Which of the following government policies would fail to lower the unemployment rate ?


aEstablishing worker training Programs


bEstablishing right-to-work laws


cReducing unemployment benefits


dRaising the minimum wage



If, for any reason the wage is held above the competitive equilibrium wage?


aThe quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment


bUnions will likely Strike and the wage will fall to equilibrium


c The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage


dThe quality of workers in the applicant pool will tend to fall



A minimum wage law tends to ?


a Help all teenagers because they receive a higher wage than they would otherwise


bhave no impact on unemployment as long as it is set above the competitive equilibrium wage


cCreate more Unemployment is high-skill job markets than in low-skill job markets


dCreate more unemployment in low-skill job markets than in high-skill job markets



Refer to Figure 1. The unemployment rate is ?


a3.2 Percent


b5.7 Percent


c 5.8 Percent


dNot Enough


View Answer 5.8 Percent

According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?


aEmployed


b Not in the labour force


cA discouraged worker


dUnemployed



TO reduce cyclical unemployment the government might ?


aIncrease the budget surplus


bIncrease the balance of payment deficit


cReduce interest rates


d Reduce government expenditure



Reducing involuntary unemployment ?


aHelps the economy move on the to Production Possibility Frontier


bHelps shift the economy’s Production Possibility Frontier outwards


cHelps the economy move along its Production Possibility Frontier


dHelps the economy move inside the Production Possibility Frontier



Occupational immobility of labour occurs if ?


aPeople lack information


b People do not want to work


cPeople do not have the right skills to work


dPeople cannot afford to move location



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