Economics MCQs

A. Raise the wage for insiders above the competitive equilibrium
B. Lower the wage of local outsiders
C. Offset the market power of a large firm that is the dominant employer in a region
D. Threaten a strike but don’t actually follow through so there are not lost hours of work

A. Increasing the wage in the unionized sector, which may create a decrease in the supply of workers in the non-unionized sector
B. Increasing the demand for workers in the unionized sector
C. Decreasing the demand for workers in the unionized sector
D. Increasing the wage in the unionized sector which may create an increase in the supply of workers in the non-unionized sector

A. Rival
B. A good produced by a natural monopoly
C. A common resource
D. Excludable

A. Rival but not excludable
B. Not rival but excludable
C. Both rival excludable
D. Neither rival nor excludable

A. establishing worker training programs
B. establishing right-to-work laws
C. reducing unemployment benefits
D. establishing employment agencies

A. Employed
B. Not in the labour force
C. A discouraged worker
D. Unemployed

A. 3.2 percent
B. 5.7 percent
C. 5.8 percent
D. Not enough

A. Help all teenagers because they receive a higher wage than they would otherwise
B. Have no impact on unemployment as long as it is set above the competitive equilibrium wage
C. Create more unemployment is high-skill job markets than in low-skill job markets
D. Create more unemployment in low-skill job markets than in high-skill job markets

A. The quantity of labour supplied will exceed the quantity of labour demanded and there will be unemployment
B. Unions will likely strike and the wage will fall to equilibrium
C. The quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
D. The quality of workers in the applicant pool will tend to fall

A. Helps the economy move on the to production possibility frontier
B. Helps shift the economy’s production possibility frontier outwards
C. Helps the economy move along its production possibility frontier
D. Helps the economy move inside the production possibility frontier