Economics MCQs

Page No. 232

Union might increase efficiency in the case Where they ?


aRaise the wage for insiders above the competitive equilibrium

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bLower the wage of local outsiders

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

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

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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

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bAt equilibrium wages workers often quit to find better jobs.

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

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dAll of these answers

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View Answer All of these answers

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


aEstablishing worker training Programs

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bEstablishing right-to-work laws

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cReducing unemployment benefits

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dRaising the minimum wage

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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

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bUnions will likely Strike and the wage will fall to equilibrium

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

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

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A minimum wage law tends to ?


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

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

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

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

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Refer to Figure 1. The unemployment rate is ?


a3.2 Percent

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b5.7 Percent

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c 5.8 Percent

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dNot Enough

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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

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b Not in the labour force

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cA discouraged worker

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dUnemployed

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TO reduce cyclical unemployment the government might ?


aIncrease the budget surplus

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bIncrease the balance of payment deficit

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cReduce interest rates

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d Reduce government expenditure

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Reducing involuntary unemployment ?


aHelps the economy move on the to Production Possibility Frontier

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bHelps shift the economy’s Production Possibility Frontier outwards

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cHelps the economy move along its Production Possibility Frontier

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dHelps the economy move inside the Production Possibility Frontier

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Occupational immobility of labour occurs if ?


aPeople lack information

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b People do not want to work

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cPeople do not have the right skills to work

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dPeople cannot afford to move location

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