Question

1) Why might we expect to see an increase in worker quality from firms paying efficiency wages?

Select one:

a. The higher wage will attract a better pool of applicants

b. None of the other answers

c. The firm will be more able to identify better workers, and will choose to higher them instead of lower-quality workers

d. The efficiency wage will be higher than the reservation wage of the lower-quality workers and they will leave the firm

2)Which of the following is NOT a potential benefit to firms of paying efficiency wages?

Select one:

a. All of the other answers are potential benefits to firms of paying efficiency wages

b. Less Worker Turnover

c. Better Worker Health

d. High Worker Effort

3)According to the Wall Street Journal article "Fiscal Hole Will Test President Donald Trump's Agenda" why is the deficit increasing?

Select one:

a. An increase in discretionary spending

b. Costs of caring for an aging population

c. Higher interest rates have made it more expensive for the United States government to borrow money

d. The recent economic downturn

4)Which of the following is NOT a potential downside to unions?

Select one:

a. Some workers benefit at the expense of others due to the cartel nature of unions

b. Increased wages from collective bargaining create surplus quantity of labor supplied

c. Decreased bargaining power for the firm may force it to provide better wages and working conditions to its workers

d. Strikes may cause lost production, revenue, and profits for firms

5)What is a "discouraged worker"?

Select one:

a. A Patriots fan that is disillusioned with the Belichick era after three Super Bowl losses

b. A worker who has given up looking for a job

c. A worker NOT being paid an efficiency wage, and thus putting in less effort than the firm would like

d. A worker that was recently laid off and now must search for a job

6)Which of the following is NOT a potential issue with the official unemployment rate?

Select one:

a. Some workers who may want to work drop out of the labor market due to unfavorable conditions

b. It does not differentiate between short-term and long-term unemployment

c. It fails to account for the surplus quantity of labor supplied caused by the minimum wage

d. It fails to distinguish between full-time and part-time workers

7)Which of the following government agencies compiles statistics on unemployment?

Select one:

a. Department of Housing and Urban Development

b. Bureau of Labor Statistics

c. Federal Bureau of Investigation

d. Unemployment Statistics Agency

Answer 1