Exam 2: Overview of the Labor Market

If every worker wants ten dollars more per hour to work,then wages will

Suppose that there are 254 million people in the population aged 16 and over.Further suppose that 150 million people have jobs and that 10 million people are unemployed.What is the unemployment rate? How many people are not in the labor force?

Table 2.1 Population: 260 million Employed: 130 million Unemployed: 10 million Retired: 35 million Under Age 16: 60 million -Given the data in Table 2.1,the labor force participation rate is

Which of the following events will cause a surplus of workers?

Suppose the price of capital in the restaurant industry decreases.Explain how the decrease in the price of capital affects the demand for labor in the restaurant industry.

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 Year Earnings CPI 1966 \ 8,000 60 1976 \ 15,000 100 1986 \ 22,500 178 1996 \ 30,000 205 -According to Table 2.2,in which year were the real earnings of workers in the Widget Industry highest?

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

Table 2.1 Population: 260 million Employed: 130 million Unemployed: 10 million Retired: 35 million Under Age 16: 60 million -Given the data in Table 2.1,the unemployment rate is

Which of the following occurs if a firm pays workers more than the market wage?

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

If the price of capital increases in an industry and the scale effect dominates,

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

Suppose the labor supply curve is as follows.The labor supply curve is perfectly elastic at an hourly wage of $8 per hour over the first 100 workers.If more than 100 workers are to be attracted,a wage greater than $8 per hour must be paid.For example,if the wage is $10 per hour,then labor supply is 150 workers.If the wage is $16 per hour,then labor supply is 300 workers.Draw the labor supply curve described.What is the economic rent in the labor market if a wage of $10 per hour is paid and 150 workers are employed? Explain.What is the economic rent if a wage of $16 per hour is paid and 300 workers are employed? Explain.

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

Suppose that the average hourly wage rate in 1980 is $6.85 per hour and that it is $10.20 per hour in 1990.Furthermore,suppose that the consumer price index is 82.4 in 1980 and that it is 130.7 in 1990.Based on the information given,the purchasing power of American worker earnings increased during the 1980s.True or false? Explain.

A worker's total compensation consists of

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

Economic rent is

"Police persons are finding more lucrative and diverse alternative careers in the private sector." If this statement is true,then the supply curve of labor to policing will likely shift ________ and become ________ steep.Select the best pair of answers.