Economics: The Basics 1st Edition by Mike Mandel

Exercise 1

Say whether each of the following statements is true or false.
a) The labor supply curve slopes down.
b) The labor force includes people who are actively looking for work but don't have a job.
c) The labor demand curve slopes down.
d) The marginal product of labor is the extra money an additional worker can bring in.
e) The labor market equilibrium occurs at the point where the quantity of labor supplied equals the quantity demanded.
f) A rightward shift in the labor demand curve would increase the equilibrium wage and the equilibrium employment.
g) The labor pool effect of globalization tends to raise wages.
h) The education premium measures the difference between the wages paid to workers with a college education and those with only a high school education.
i) Raising the minimum wage increases employment.
j) An effective union raises wages above the market level.
k) Increased immigration always lowers domestic wages.