Which of the following statements is correct?
a. If unions successfully bargain for higher wages for their union members, employment among union members will increase.
b. Wages are higher in nonunion jobs than in union jobs of comparable skill.
c. The efficiency wage model asserts that higher wages will lead to higher productivity.
d. The imposition of a minimum wage above the market price for unskilled labor creates a shortage of labor.
Question 2If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment:
a. Increase; increase.
b. Increase; not change.
c. Decrease; decrease.
d. Decrease; not change.
Question 3If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:
a. Increase; increase.
b. Increase; not change.
c. Not change, increase.
d. Do none of the above.
Question 4If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ structural unemployment and ____ the natural rate of unemployment:
a. Increase; increase.
b. Increase; not change.
c. Not change, increase.
d. Do none of the above.
Question 5If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor:
a. the quantity of unskilled labor demanded will exceed the quantity of unskilled labor supplied.
b. the quantity of unskilled labor supplied will equal the quantity of unskilled labor demanded.
c. the quantity of unskilled labor supplied will exceed the quantity of unskilled labor demanded.
d. the demand for unskilled labor will decrease.
Question 6The term full employment implies an unemployment rate of:
a. zero
b. approximately 5
c. approximately 10
d. 100
Question 7If the economy is operating with full employment, which of the following is essentially eliminated?
a. frictional unemployment
b. structural unemployment
c. cyclical unemployment
d. all of the above
Question 8If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?
a. frictional unemployment
b. structural unemployment
c. cyclical unemployment
d. all of the above
Question 9The natural rate of unemployment:
a. is the sum of both frictional and structural unemployment when they are at a maximum.
b. includes only frictional unemployment.
c. includes only structural unemployment.
d. includes only cyclical unemployment.
Question 10The Natural rate of unemployment equals
a. The sum of the frictional and structural unemployment rates.
b. The sum of the frictional and cyclical unemployment rates.
c. The sum of the structural and cyclical unemployment rates.
d. None of the above.
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