When labour increases with no change in labour productivity, _________________.

the PPF shifts outward
a movement downward along the production function occurs
the PPF shifts inward
a movement upward along the production function occurs

_______ is the knowledge and skill that people have obtained from education and on-the-job training.

Learning-by-doing
Capital
Technology
Human capital

When the real wage rate rises, ___________________.

a shortage of labour increases
the quantity of labour demanded increases
a surplus of labour decreases
the quantity of labour demanded decreases

As the quantity of labour employed increases, the _________________.

real wage rate rises
marginal product of labour does not change
money wage rate rises
marginal product of labour decreases

When a rise in the real wage rate occurs, most households will have an _________________.

opportunity cost effect that is equal to the income effect
income effect that is stronger than the opportunity cost effect
increase in their labour supply
opportunity cost effect that is stronger than the income effect

When the population increases with no change in labour productivity, potential GDP _______ and potential GDP per hour work _______.

decreases; decreases
increases; increases
decreases; increases
increases; decreases

The time spent on job search falls when _______________________.

unemployment compensation increases
the opportunity cost of not working decreases
the efficiency wage is lowered
unemployment compensation decreases

Job rationing creates _________________________.

a surplus of jobs
a decrease in the natural rate of unemployment
a wage rate below the equilibrium wage rate
a surplus of labour

The efficiency wage _____________________.

is equal to the minimum wage
does not motivate employees
results in a high labour turnover
maximizes the firm's profit

A minimum wage ______________________.

discourages job rationing
set below the equilibrium wage is effective
must be set below $5.15 an hour to be effective
set above the equilibrium wage is effective

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