Labor Markets and Wages Quiz

What is the main factor that determines wages in a labor market?

• Union membership

• Minimum wage laws

• Demand for the labor a person provides

• Number of employees in the market

What is the term used to describe the situation when there is only one company hiring and workers are relatively immobile?

• Oligopoly

• Monopoly

• Monopsony

• Cartel

What is the term used to describe the value of the lost free time and the money a worker could be making doing something else?

• Fixed cost

• Marginal cost

• Sunk cost

• Opportunity cost

What is the organization that advances the collective interest of employees and strives to improve working conditions and increase wages?

• Workers' guild

• Labor union

• Employer association

• Trade federation

What is the term used to describe a price floor that prevents employers from paying workers below a specific amount?

• Living wage

• Price ceiling

• Market equilibrium

• Minimum wage

What is the main argument against minimum wage laws according to classical economists?

• It reduces consumer spending

• It hurts employers

• It increases poverty

• It leads to unemployment

What is the term used to describe the value of the lost free time and the money a worker could be making doing something else?

• Fixed cost

• Marginal cost

• Sunk cost

• Opportunity cost

What is the organization that advances the collective interest of employees and strives to improve working conditions and increase wages?

• Trade federation

• Employer association

• Labor union

• Workers' guild

What is the term used to describe a price floor that prevents employers from paying workers below a specific amount?

• Living wage

• Price ceiling

• Market equilibrium

• Minimum wage

What is the main argument against minimum wage laws according to classical economists?

• It leads to unemployment

• It reduces consumer spending

• It increases poverty

• It hurts employers