Economics: Unit 4 Review

What is the main factor that determines wages in a labor market?

• Union membership

• Minimum wage laws

• Demand for the labor a person provides

• Number of employees in the market

What is the term used to describe the value of the lost free time and the money a worker could be making doing something else?

• Fixed cost

• Marginal cost

• Sunk cost

• Opportunity cost

What is the organization that advances the collective interest of employees and strives to improve working conditions and increase wages?

• Workers' guild

• Labor union

• Employer association

• Trade federation

What is the term used to describe a price floor that prevents employers from paying workers below a specific amount?

• Living wage

• Price ceiling

• Market equilibrium

• Minimum wage

What is the main argument against minimum wage laws according to classical economists?

• It reduces consumer spending

• It hurts employers

• It increases poverty

• It leads to unemployment

What is outsourcing?

• Sending work once done by company to outside contractors

• Employing workers for a limited amount of time

• Working from home or outside of traditional workplaces

• Hiring full-time employees

Which of the following is an example of an unskilled worker?

• Doctor

• General Foreman

• Dishwasher

• Teacher

What type of wage do semiskilled workers typically earn?

• Salary

• Low hourly wage

• Supervised, hourly wage

• Commission-based wage

Which category of workers requires advanced training and typically earns a salary?

• Unskilled

• Semiskilled

• Skilled

• Professional

What are wages generally based on?

• Market demand

• Skill level

• Government policies

• Community services