TO reduce cyclical unemployment the government might ?

A. Increase the budget surplus
B. Increase the balance of payment deficit
C. Reduce interest rates
D. Reduce government expenditure

If the real wage is too high in the labour market ?

A. The quantity demanded of labour is higher than the quantity supplied
B. The quantity demanded of labour equals the quantity supplied
C. The quantity demanded of labour is lower than the quantity supplied
D. It will automatically adjust in the short run to bring equilibrium

Occupational immobility of labour occurs if ?

A. People lack information
B. People do not want to work
C. People do not have the right skills to work
D. People cannot afford to move location

Demand for labour is more likely to be wage inelastic if ?

A. Wages are a small proportion of total costs
B. Demand for the final product is price elastic
C. It is easy to replace labour
D. Capital is a good substitute for labour

In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?

A. The average cost of labour
B. The marginal product
C. The marginal revenue
D. The total cost of labour

If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?

A. There will be equilibrium in the labour market
B. There will excess demand in the labour market
C. There will be excess supply in the labour market
D. More people will be employed

Supply side policies are most appropriate to cure ?

A. Involuntary unemployment
B. Cyclical unemployment
C. Voluntary unemployment
D. A fall in aggregate demand

IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?

A. Frictional unemployment would fall
B. The official unemployment rate would probably understate true unemployment
C. The official unemployment rate would probably overstate true unemployment
D. There would be no impact on the official unemployment rate

The Marginal Revenue Product is likely to be wage inelastic if ?

A. Labour costs are a high percentage of total costs
B. Demand for the final product is price inelastic
C. It is relatively easy to substitute capital for labour
D. There are many substitutes for the final product

A decrease in the supply of labour is likely to lead to ?

A. A lower equilibrium wage and lower quantity of labour
B. A lower equilibrium wage and higher quantity of labour
C. A higher equilibrium wage and higher quantity of labour
D. A higher equilibrium wage and lower quantity of labour