Economics Quiz: Labor Markets

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17 Questions

What primarily determines labor supply and wages in a local labor market?

Collective bargaining between unions and employers

What type of labor market is characterized by a highly variable labor supply and constant demand in the long run?

Unskilled Labor Market

What factor prohibits a wide range of wages in the unskilled labor market?

Minimum wage laws and public opinion

What type of labor market is characterized by workers running machines to produce a product, with limited contacts to other employees and supervisors?

Clerical Labor Market

What determines demand and competition for workers in a local labor market?

Employers through job design and training

What type of labor market is characterized by labor supply depending on the local labor force?

Craft Labor Market

Which type of labor market is characterized by high wages and stable employment relationships?

Primary labor market

Which of the following occupations is an example of a job in the secondary labor market?

Construction worker

What type of labor market jobs are students not likely to find during vacations or part-time work during the academic year?

Primary labor market

Which type of labor market is associated with low wages and unstable employment relationships?

Secondary labor market

Which of the following statements is true about the primary labor market?

It is associated with jobs that require specialized skills and education.

Which type of labor market is characterized by recruiting labor supply at the bottom of the hierarchy and promoting from within through training and experience?

Bureaucratic Labor Market

What type of labor market is not a part of the sociological division of labor markets?

National Labor Market

Which type of labor market is a useful benchmark in comparing sociological labor markets?

Bureaucratic Labor Market

What is the primary labor-supply problem in bureaucracies?

Individuals it cannot train itself

What type of labor market is characterized by a labor supply that is controlled by the organization?

Bureaucratic Labor Market

Which type of labor market is not considered a sociological division of labor market?

National Labor Market

Study Notes

Labor Market

  • Internal and primary labor markets refer to the sociological division of labor markets.
  • External and secondary labor markets also refer to the sociological division of labor markets.
  • Bureaucratic, professional, and craft labor markets are types of internal labor markets.
  • Primary labor market is characterized by high wages and stable employment relationships.
  • Examples of jobs in primary labor market include accountant, lawyer, teacher, carpenter, and plumber.

Internal Labor Market

  • Internal labor market is a useful benchmark in comparing sociological labor markets because bureaucracies are assumed to fill all jobs but the entry one from within the organization.
  • It is insulated from external labor markets because its labor supply is recruited at the bottom of the hierarchy and promoted from within through training and experience.

Bureaucratic Labor Market

  • Labor-supply problems in bureaucracies involve primarily the individuals it cannot train itself – professionals, for example.
  • Labor demand is also controlled by the bureaucracy.

Craft Labor Market

  • Craft markets are essentially local, and craft controls operate locally.
  • Labor supply depends on the local labor force.
  • Demand and competition for workers are determined by employers, who design the jobs, provide training, and promote from within.

Unskilled Labor Market

  • The market for unskilled labor, if such labor is defined as requiring no skill or training, has almost disappeared.
  • But casual labor is still employed.
  • The supply of unskilled labor is highly variable.
  • Demand is constant in the long run but highly variable in the short run.

Secondary Labor Market

  • Workers employed in secondary labor markets receive low wages and experience unstable employment relationships.
  • Examples of jobs in secondary labor markets include workers in restaurants, gas station attendants, construction workers, private tutors, and short-term consultants.
  • Students are not likely to find secondary labor market jobs during vacations or for part-time work during the academic year.
  • Adults who are "stuck" in secondary labor market occupations because of limited job skills and education are not as pleased with finding their only employment prospects in this sector.

Test your understanding of labor markets, including primary and secondary labor markets, and the characteristics of each. Identify the types of jobs and employment relationships that fall under each category.

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