Exam 2: Overview of the Labor Market

Average real hourly compensation of workers in the United States

Workers in an industry are probably underpaid if

The labor force is made up of

Which area pays the highest real wage?

Which of these persons is officially classified as being "not in the labor force"?

It has been said that teaching assistants to professors are underpaid. Which of the following would be evidence (if true) that they are underpaid?

The labor market does NOT

A worker's income is equal to his

If a union negotiates an industry-wide agreement to set wages above the equilibrium level,

If the price of a product decreases due to a decrease in demand, then

Economic rent is

In the Widget industry, it takes two workers (with other inputs) to produce each widget and since consumers demand 1000 widgets at its current price, 2000 workers are employed in the industry. Which of the following could occur if the price of capital falls and labor and capital are substitutes in production?

When wages increase, the substitution effect implies that employment will ________ and the scale effect implies that employment will ________.

During the twentieth century, the unemployment rate in the United States

If the salaries of accountants increase and other conditions remain the same, then

Which of the following events could explain why wages and employment could fall in a competitive labor market?

Table 2.2 Workers in the Widget Industry -According to Table 2.2, real earnings in the Widget Industry in 1986 were

When the price of capital increases, the quantity of ________ demanded will ________, but the effect on ________ is ambiguous.

When the price of labor falls, the quantity of ________ demanded will ________, but the effect on ________ is ambiguous.

Table 2.1 -Given the data in Table 2.1, the unemployment rate is