Labor Market and Wages quiz

More questions about Labor Market and Wages

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

1. 1 Easy

   What unemployment comes from time spent finding a new job?

   Answer: Frictional unemployment

   Why: Job searches take time, so some frictional unemployment remains even in a booming economy and counts toward the natural rate.

2. 2 Medium

   What is paying above the going rate to boost effort called?

   Answer: Efficiency wage

   Why: Ford's $5 day of 1914 is the classic case: the year before, staff turnover at its plants had hit 370 percent.

3. 3 Hard

   Where did Card and Krueger count jobs to test a minimum wage rise?

   Answer: Fast-food outlets

   Why: Comparing New Jersey with neighboring Pennsylvania, they found no drop in fast-food jobs after New Jersey's 1992 minimum wage rise.

4. 4 Easy

   What do economists call skills and schooling that raise pay?

   Answer: Human capital

   Why: Gary Becker's 1964 book Human Capital treated schooling like a firm buying machines: an investment that pays back in higher earnings.

5. 5 Medium

   How much of France's workforce belongs to a union?

   Answer: About 10%

   Why: French union deals are extended to whole sectors, so over 90% of employees are covered by them even though few are members.

6. 6 Hard

   Why do managers avoid pay cuts in recessions, per Truman Bewley?

   Answer: Worker morale

   Why: Bewley based this on interviews with over 300 executives, union leaders and recruiters during the early-1990s recession.