Exam 20: The Labor Market: Workers, Wages, and Unemployment

Firms will hire additional workers as long as the wage:

Holding other factors constant, technological progress ________ the real wage and ________ employment.

Globalization and skill-biased technological change have contributed to:

Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50. When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25 a set. Assuming workers cannot move between industries, the wages of workers producing dishes will ________ and the wages of workers producing glasses will ________.

The real wage is the:

Structural unemployment will decrease when:

The following table provides information about production at the XYZ-TV Company.   How many workers will XYZ-TV Company hire if the going wage for TV production workers is $28,000?

Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will ________, and the number of workers who are employed will ________.

Short-term unemployment that is associated with the process of matching workers with jobs is called ________ unemployment.

Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:

Skill-biased technological change increases wage inequality by altering the ________ high-skilled workers relative to low-skilled workers.

Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will ________ and employment of workers will ________.

If the Luddites had succeeded in ________ the introduction of labor-saving machinery, economic growth in Great Britain may have been ________.

Skill-biased technological has different effects on the marginal products of ________ workers and ________ workers.

Periods of unusually low production in an economy result in ________ unemployment.

In the United States there is evidence of:

Increasing wage inequality results when international trade leads to ________ wages for workers in exporting industries and ________ wages for workers in importing industries.

The principle of diminishing returns to labor is based on the:

A war destroys much of the capital stock in the country of Omega. As a result, holding other factors constant, the real wage in Omega will ________ and employment in Omega will ________.

The following table provides information about production at the XYZ-TV Company.     How many workers will XYZ-TV Company hire if the going wage for TV production workers is $32,000?