Understanding Labor Markets and Wage Determination

What is the primary reason Cristiano Ronaldo earns a high salary?

• His unique skills create high demand

• Soccer is a globally popular sport

• He has a good agent

• He negotiated better than others

What does 'monopsony' in a labor market imply?

• There are multiple employers

• There is no wage discrimination

• There is only one employer

• Workers have high mobility

How do unions influence wages?

• They decrease wages

• They negotiate for lower working hours

• They increase wages through collective bargaining

• They have no impact on wages

Which argument is made against raising the minimum wage to a very high level?

• It will definitely end poverty

• It could negatively impact employment in areas with lower median incomes

• It might not affect the economy

• It could lead to higher employment in low-income areas

What was the outcome when New Jersey raised its minimum wage compared to Pennsylvania in 1992?

• Data was inconclusive

• Employment increased

• Employment decreased

• No change in employment