Question : 91) Holding all other influences constant, the quantity of labor : 1224048

 

 

91) Holding all other influences constant, the quantity of labor supplied in a given time period depends

A) inversely on the real wage rate so that a higher real wage decreases the quantity of labor supplied.

B) directly on the real wage rate so that a higher real wage increases the quantity of labor supplied.

C) inversely on the quantity of labor demanded.

D) on the money wage rate not the real wage rate.

E) directly on the quantity of labor demanded.

 

 

92) When all other influences on work plans remain the same, the

A) lower the real wage rate, the smaller the quantity of labor supplied.

B) higher the real wage rate, the greater the quantity of labor demanded.

C) lower the real wage rate, the greater the quantity of labor supplied.

D) lower the real wage rate, the smaller the quantity of labor demanded.

E) lower the real wage rate, the larger the labor force participation.

 

93) The quantity of labor supplied increases as the real wage rises because

A) higher real wages mean that nominal wages have increased.

B) the opportunity cost of working increases.

C) the quantity of labor demanded increases.

D) the opportunity cost of leisure rises.

E) labor force participation decreases so that only serious workers are left in the labor force.

 

 

94) As the real wage rate rises, the opportunity cost of

A) working rises.

B) saving rises.

C) leisure rises.

D) leisure falls.

E) buying goods and services rises.

 

 

95) The labor force participation rate

A) increases as the real wage increases.

B) decreases as the real wage increases.

C) has nothing to do with the real wage rate.

D) increases as the opportunity cost of working increases.

E) is one of the major reasons that firms pay efficiency wages.

 

 

96) The labor market is in equilibrium whenever

A) the nominal wage rate is decreasing.

B) the nominal wage rate is increasing.

C) the nominal wage rate is not changing.

D) the real wage rate is increasing.

E) the quantity of labor demanded equals the quantity of labor supplied.

 

97) A surplus of labor is eliminated by ________ in the real wage rate and a shortage of labor is eliminated by ________ in the real wage rate.

A) an increase; an increase

B) an increase; a decrease

C) a decrease; an increase

D) a decrease; a decrease

E) None of the above answers is correct because shortages and surpluses are eliminated by changes in the demand for labor and the supply of labor, not the wage rate.

 

 

98) A surplus in the labor market indicates that the

A) real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor.

B) quantity of labor demanded is less than the quantity of labor supplied.

C) real wage rate has to rise before the labor market will reach equilibrium.

D) workers are not looking for work because they enjoy their leisure time.

E) real wage rate is less than the equilibrium wage rate.

 

 

99) When the labor market is in equilibrium so that the quantity of labor supplied equals the quantity demanded,

A) there is no unemployment.

B) the economy is at full employment.

C) nominal GDP equals real GDP.

D) there is no inflation.

E) real GDP might be more than, less than, or equal to potential GDP.

 

100) When the labor market is in equilibrium,

i.the quantity demanded of labor equals the quantity supplied.

ii.there is full employment.

iii.potential GDP is produced.

A) i only

B) ii only

C) iii only

D) i and iii

E) i, ii, and iii

 

 

101) When the labor market is in equilibrium,

A) there is excess labor supplied, which keeps real GDP less than potential GDP.

B) there is full employment, which means that real GDP equals potential GDP.

C) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.

D) the real wage rate rises to allow real GDP to equal potential GDP.

E) there is full employment but real GDP might be greater than, less than, or equal to potential GDP.

 

 

102) In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate exceeds the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________.

A) surplus; fall

B) shortage; fall

C) shortage; rise

D) surplus; rise

E) surplus; not change because only efficiency wages or union wages can change.