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Labor Economics MCQ

Frictional unemployment can result when ____________. (check all that apply.)

Firms and workers have imperfect information about the state of the economy.

Government regulations may limit the number of people that a firm can hire.

It takes time for firms to find applicants with the right skills and experience.

Firms and workers have imperfect information about each other.

Answer

Correct Answer: Firms and workers have imperfect information about the state of the economy.
It takes time for firms to find applicants with the right skills and experience.
Firms and workers have imperfect information about each other.

Note: This question has more than 1 correct answers

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The total efficiency units of labor are ____________.

The product of the total number of workers and the average human capital of each worker

Aggregate GDP of a nation and its factors of production

Inputs used to produce other goods and services in an economy

The value of output that a worker generates for each hour of work

Answer

Correct Answer: The product of the total number of workers and the average human capital of each worker

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When the unemployment rate is the natural unemployment rate, real gdp is .

Below; above

Above; above

Above; below

Below; below

Answer

Correct Answer: Below; above

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The value of the marginal product of labor is the ____________.

Change in output from hiring an additional worker.

Market value of a worker's additional output for a firm

Given by the marginal product of labor times the price of the firm's output.

A and C only

Answer

Correct Answer: Market value of a worker's additional output for a firm

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Structural unemployment usually lasts period of time unemployment

A longer; than frictional

Shorter; than frictional

Both

None of the above

Answer

Correct Answer: A longer; than frictional

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A pure monopoly will find that marginal revenue _____.

Is less than the price

Is greater than the price

Is sometimes greater and sometimes less than price

Is identical to price

Answer

Correct Answer: Is less than the price

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Two explanations for increasing wage inequality are and __.

Decrease job search efforts of unemployed workers

Grew more rapidly than the over-sixteen population.

Unemployed divided by the labor force

Globalization; skill-biased technological change

Answer

Correct Answer: Globalization; skill-biased technological change

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When cyclical unemployment increases and other things remain the same, ______.

The natural unemployment rate does not change

The natural unemployment rate decreases

The amount of frictional unemployment increases

The amount of structural unemployment increases

Answer

Correct Answer: The natural unemployment rate does not change

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Natural unemployment equals _ unemployment plus _ unemployment.

Frictionally unemployed.

Frictional; structural

Cause disinflation.

Unemployed to those in the labor force

Answer

Correct Answer: Frictional; structural

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The labor-force participation rate measures the proportion ( or percentage) of the_________.

(the labor force divided by the total population) times 100.

(the labor force divided by the adult population) times 100.

(the number of employed divided by the adult population) times 100.

(the number of unemployed divided by the adult population) times 100

Answer

Correct Answer: (the labor force divided by the adult population) times 100.

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Factor markets determine payments for labor as well as land, capital and ___________________.

Entrepreneurship

Increase

Substitution

Efficiency

Answer

Correct Answer: Entrepreneurship

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A minimum wage set above the equilibrium wage rate for low-skilled workers _______.

Creates more employment opportunities for low-skilled workers

Creates unemployment among low-skilled workers

Creates more prosperity among younger people

Increases the number of good paying jobs available to young people

Answer

Correct Answer: Creates unemployment among low-skilled workers

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Labor Economics MCQ

Frictional unemployment can result when ____________. (check all that apply.)

The total efficiency units of labor are ____________.

When the unemployment rate is ________ the natural unemployment rate, real gdp is ________.

The value of the marginal product of labor is the ____________.

Structural unemployment usually lasts ________ period of time ________ unemployment

A pure monopoly will find that marginal revenue _____.

Two explanations for increasing wage inequality are ______ and ________.

When cyclical unemployment increases and other things remain the same, ______.

Natural unemployment equals _____ unemployment plus _____ unemployment.

The labor-force participation rate measures the proportion ( or percentage) of the_________.

Factor markets determine payments for labor as well as land, capital and ___________________.

A minimum wage set above the equilibrium wage rate for​ low-skilled workers​ _______.

When the unemployment rate is the natural unemployment rate, real gdp is .

Structural unemployment usually lasts period of time unemployment

Two explanations for increasing wage inequality are and __.

Natural unemployment equals _ unemployment plus _ unemployment.

A minimum wage set above the equilibrium wage rate for low-skilled workers _______.