Exam 2: Overview of the Labor Market

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?

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,real earnings in the Widget Industry in 1986 were

Nonmarket forces can prevent a labor market from achieving equilibrium.Explain.

Because workers choose between various employers offering the same type of job based primarily on wages,

Which area pays the highest real wage?

The labor force is made up of

Draw a hypothetical labor demand curve for machinists in the aircraft industry.What is being held constant in drawing your labor demand curve? Why does the curve look as you have drawn it? Why does the shape of this curve depend on the period of time (short run versus long run)under consideration?

Workers in an industry are probably underpaid if

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

If unions raise wages above their market clearing level,then

How is the monthly unemployment rate determined in the United States?

Long-term unemployment rates are higher in most Western European countries than in the United States because

If more people enter the labor market for architects,then

Because workers have varying preferences about the type of work they like to do,

Which of the following events will cause the labor demand curve to shift up and to the right?

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

The supply of a particular type of labor to a firm is less elastic than the supply of labor to the market.True,false,or uncertain? Explain.

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

What are the two basic types of employee benefit that workers receive? Give examples of each.

A worker's income is equal to his