Labor Markets Clicker Questions

[#1]

Which of the following will decrease a firm's demand for labor?

A. An increase in the wages of workers

B. An increase in the price of the firm's product

C. A decrease in the supply of labor

D. An lower relative price of output

E. None of the above

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Some people argue that increasing taxes on the rich will cause people to stop working. They are assuming:

A. labor supply curves are upward sloping

B. labor supply curves are backward bending

C. substitution effects dominate income effects

D. both B and C

E. both A and C

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New technology now allows workers to produce more in a shorter amount of time. This will cause:

A. the labor demand curve to shift left

B. the labor demand curve to shift right

C. the labor supply curve to shift left

D. the labor supply curve to shift right

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Males major in engineering much more frequently than females and starting salaries for engineers (male or female) are very high. As a result, the wage gap is __________ because of __________.

A. smaller; employer discrimination

B. larger; customer discrimination

C. smaller; human capital choices made by male and female students

D. larger; human capital choices made by male and female students