Labor Economics Quiz

What is the labor market?

• A market where labor unions negotiate wages

• A market where physical labor is traded

• A place where people buy and sell labor

• Where sellers sell their labor to firms and businesses

What factors determine wages in the labor market?

• Gender, age, and race

• Political affiliation

• Supply and demand for labor, level of education and skills, experience, industry and occupation, geographic location, and bargaining power of workers.

• Physical appearance

What is the concept of supply and demand in the labor market?

• The concept of supply and demand in the labor market refers to the relationship between the number of job opportunities and the qualifications of available workers.

• Supply and demand in the labor market is the process by which employers determine the number of workers they need and the wages they are willing to pay.

• The relationship between the number of available workers and the number of job opportunities

• Supply and demand in the labor market is the balance between the wages offered by employers and the skills and experience of job seekers.

How does the minimum wage affect the labor market?

• It always leads to increased employment opportunities

• It always leads to decreased wages for all workers

• It has no effect on the labor market

• It can lead to increased wages for some workers, but also decreased employment opportunities.

What are the potential effects of minimum wage on employment?

• The potential effects of minimum wage on employment can vary.

• Minimum wage has no effect on employment

• Minimum wage increases employment opportunities

• Minimum wage decreases employment opportunities

What is labor market equilibrium?

• The point where the demand for labor and supply of labor are unrelated, resulting in a random market wage rate and quantity of labor employed.

• The point where the demand for labor exceeds the supply of labor, resulting in a decrease in market wage rate and quantity of labor employed.

• The point where the demand for labor equals the supply of labor, resulting in a market wage rate and quantity of labor employed.

• The point where the supply of labor exceeds the demand for labor, resulting in an increase in market wage rate and quantity of labor employed.

What happens when there is a surplus of labor in the market?

• Decreased unemployment rate

• Higher wages for job seekers

• Decreased competition among job seekers

• Increased competition among job seekers

What happens when there is a shortage of labor in the market?

• Increased competition among employers to attract workers

• Decreased competition among employers to attract workers

• Increased unemployment rates

• Decreased wages for workers

How does an increase in demand for labor affect wages?

• Wages decrease

• Wages remain the same

• Wages fluctuate

• Wages increase

How does an increase in supply of labor affect wages?

• Decrease

• Stay the same

• Have no effect

• Fluctuate