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What is the primary consequence of a real wage being above the equilibrium level?
What is the primary consequence of a real wage being above the equilibrium level?
- Workers are more likely to actively search for jobs
- Firms are incentivized to hire more workers
- Labor demand exceeds labor supply
- The quantity of labor supplied exceeds the quantity demanded (correct)
Structural unemployment occurs when
Structural unemployment occurs when
- there is a mismatch between labor supply and demand (correct)
- workers are actively searching for better jobs
- the minimum wage is set too low
- firms have a surplus of labor
What is the expected response of firms when the labor supply exceeds labor demand?
What is the expected response of firms when the labor supply exceeds labor demand?
- Raise wages to attract more workers
- Lower wages to reduce labor costs (correct)
- Increase the number of jobs available
- Maintain the current wage level
Which of the following is NOT a cause of wage rigidity?
Which of the following is NOT a cause of wage rigidity?
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What is the result of firms rationing scarce jobs among workers?
What is the result of firms rationing scarce jobs among workers?
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Which type of unemployment occurs when workers are not actively searching for jobs but are waiting for jobs to open up?
Which type of unemployment occurs when workers are not actively searching for jobs but are waiting for jobs to open up?
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