An increase in the wage rate ?

Related Mcqs:

1. The government increase the minimum wage. The National Association of Fast Food Restaurants hires you to determine the impact that this higher minimum wage will have on it industry. This is an example of ?

   A. industry equilibrium analysis
   B. specific equilibrium analysis
   C. partial equilibrium analysis
   D. general equilibrium analysis

2. If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?

   A. There will be equilibrium in the labour market
   B. There will excess demand in the labour market
   C. There will be excess supply in the labour market
   D. More people will be employed

3. Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?

   A. Structural unemployment
   B. Cyclical Unemployment
   C. Frictional Unemployment
   D. None of these answers
   E. Sectoral Unemployment

4. If, for any reason the wage is held above the competitive equilibrium wage?

   A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
   B. Unions will likely Strike and the wage will fall to equilibrium
   C. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
   D. The quality of workers in the applicant pool will tend to fall

5. The term ‘real wage’ means the money wage” ?

   A. after tax
   B. allowing for change in prices.
   C. Plus, benefits in kind
   D. plus, overtime payments.

6. Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?

   A. sticky-wage theory of the short-run aggregate supply curve
   B. classical dichotomy theory of the short-run aggregate supply curve
   C. misperceptions theory of the short-run aggregate supply curve
   D. sticky-price theory of the short run aggregate supply curve

7. An increase in the minimum wage will cause a relatively large increase in unemployment among ?

   A. unskilled workers if the demand for labour is relatively inelastic
   B. unskilled workers if the demand for labour is relatively elastic
   C. skilled workers if the demand for labour is relatively elastic
   D. skilled workers if the demand for labour is relatively inelastic

8. Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?

   A. will have no effect on labour supply
   B. will decreases labour supply
   C. could cause either an increases or a decrease in labour supply
   D. will increase labour supply.

9. If workers get a real wage increase this will likely ____ and _____?

   A. encourage the use of more capital in the long run, reduce demand for all inputs
   B. encourage the use of more capital increase demand for all inputs
   C. encourage the use of less capital reduce demand for all inputs
   D. encourage the use of less capital, reduce demand for all inputs

10. If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?

    A. inflation
    B. a supply shock
    C. crowding out
    D. inflation illusion