Unformatted text preview: alytic Skills 4) Suppose rate in the labor market is $15 and the productivity of workers increases, which of the following the wage statements is INCORRECT? A) The labor B) demand curve shifts to the right. If wages are C) flexible, there will be an increase in wages. If wages are D) sticky, there will be a shortage in the labor market. If wages are sticky, there will be a surplus in the labor market. Answer: D Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Analytic AACSB: Analytic Skills 5) If wages are sticky, an increase in labor A) demand B) decreases the wage rate. supply increases the wage rate. C) demand D) increases the wage rate. demand leaves wage rates intact. Answer: D Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Conceptual AACSB: Reflective Thinking 6) An unspoken agreement between workers and firms that the firm will not cut wages is known as A) an implicit or social contract. B) an explicit C) contract. a relative-wage contract. D) employment-at- will. Answer: A Diff: 1 Topic: Explaini...
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- Fall '13
- Macroeconomics, AACSB, Reflective thinking, labor market, Conceptual AACSB