Unit 3 Review

In supply and demand of labor, the number of laborers is the ______ and the number of job openings is the ______.

• supply, demand

• demand, supply

• surplus, shortage

• shortage, surplus

When demand for a skill is low, but supply of workers with that skill is high, this usually results in a labor ______ and wages ______.

• shortage, increase

• surplus, decrease

• surplus, increase

• shortage, decrease

When demand for a skill is high, and supply of workers with that skill is low, this usually results in a labor ______ and wages ______.

• shortage, increase

• surplus, decrease

• surplus, increase

• shortage, decrease

What is the minimum wage known as?

• Wage ceiling

• Wage floor

• Wage cap

• Wage limit

What can result when there is a minimum wage above the equilibrium wage?

• Labor shortage

• Labor surplus

• Wage decrease

• Wage stability

What can be a result of a labor surplus?

• Wage increases

• Unemployment

• Job creation

• Economic growth

Can states set their minimum wage above or below the federal minimum wage?

• Above

• Below

• Both above and below

• Neither above nor below

What is the difference between offshoring and outsourcing?

• Offshoring is done locally, outsourcing is done internationally.

• Offshoring involves moving production overseas, outsourcing involves hiring external companies.

• Offshoring is cheaper than outsourcing.

• Offshoring and outsourcing are the same.

What is the name of the process in which labor unions negotiate with employers?

• Mediation

• Arbitration

• Collective bargaining

• Litigation

What is the difference between arbitration and mediation?

• Mediation is an informal process, arbitration is binding

• Mediation involves a lawyer, arbitration does not

• Mediation never results in strikes, arbitration always does

• They are the same thing