Unformatted text preview: ) will remain at 300 million. labor supply will decrease to restore the market to equilibrium. Answer: A Diff: 2 Topic: The Classical View of the Labor Market Skill: Analytic AACSB: Analytic Skills 7) Firms might pay efficiency wages above the equilibrium wage for all of the following reasons EXCEPT A) to reduce B) employee shirking. to improve C) employee morale. to reduce D) employee turnover. to reduce taxes. Answer: D Diff: 2 Topic: The Classical View of the Labor Market Skill: Conceptual AACSB: Reflective Thinking Refer to the information provided in Figure 14.2 below to answer the questions that follow. Figure 14.2 8) Refer to 14.2. The equilibrium wage rate is $________ and the equilibrium number of people employed is Figure ________ million people. A) 15; 270 B) 9; 210 C) 15; 150 D) 6; 180 Answer: B Diff: 1 Topic: The Classical View of the Labor Market Skill: Analytic AACSB: Analytic Skills 9) Refer to Figure 14.2. At wage rate $15, there is a ________ of labor equal to ________ million people. A) surplus; 150 B) shortage; 150 C) shortage; 120 D) surplus; 120 Answer: D Diff:...
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- Fall '13
- Macroeconomics, AACSB, Reflective thinking, labor market, Conceptual AACSB