Labor Economics MCQs
Labor Economics MCQs
Answer these 10+ Labor Economics MCQs and assess your grip on the subject of Labor Economics. Scroll below and get started!
1: A minimum wage set above the equilibrium wage rate for​ low-skilled workers​ _______.
A. Creates more employment opportunities for low-skilled workers
B. Creates unemployment among low-skilled workers
C. Creates more prosperity among younger people
D. Increases the number of good paying jobs available to young people
2: Factor markets determine payments for labor as well as land, capital and ___________________.
A. Entrepreneurship
B. Increase
C. Substitution
D. Efficiency
3: The labor-force participation rate measures the proportion ( or percentage) of the_________.
A. (the labor force divided by the total population) times 100.
B. (the labor force divided by the adult population) times 100.
C. (the number of employed divided by the adult population) times 100.
D. (the number of unemployed divided by the adult population) times 100
4: Natural unemployment equals _____ unemployment plus _____ unemployment.
A. Frictionally unemployed.
B. Frictional; structural
C. Cause disinflation.
D. Unemployed to those in the labor force
5: When cyclical unemployment increases and other things remain the same, ______.
A. The natural unemployment rate does not change
B. The natural unemployment rate decreases
C. The amount of frictional unemployment increases
D. The amount of structural unemployment increases
6: Two explanations for increasing wage inequality are ______ and ________.
A. Decrease job search efforts of unemployed workers
B. Grew more rapidly than the over-sixteen population.
C. Unemployed divided by the labor force
D. Globalization; skill-biased technological change
7: A pure monopoly will find that marginal revenue _____.
A. Is less than the price
B. Is greater than the price
C. Is sometimes greater and sometimes less than price
D. Is identical to price
8: Structural unemployment usually lasts ________ period of time ________ unemployment
A. A longer; than frictional
B. Shorter; than frictional
C. Both
D. None of the above
9: The value of the marginal product of labor is the ____________.
A. Change in output from hiring an additional worker.
B. Market value of a worker's additional output for a firm
C. Given by the marginal product of labor times the price of the​ firm's output.
D. A and C only
10: When the unemployment rate is ________ the natural unemployment rate, real gdp is ________.
A. Below; above
B. Above; above
C. Above; below
D. Below; below
11: The total efficiency units of labor are ____________.
A. The product of the total number of workers and the average human capital of each worker
B. Aggregate GDP of a nation and its factors of production
C. Inputs used to produce other goods and services in an economy
D. The value of output that a worker generates for each hour of work
12: Frictional unemployment can result when ____________. (check all that apply.)
A. Firms and workers have imperfect information about the state of the economy.
B. Government regulations may limit the number of people that a firm can hire.
C. It takes time for firms to find applicants with the right skills and experience.
D. Firms and workers have imperfect information about each other.
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Labor Economics MCQs
