When a labor market experiences a surplus of labor, there is downward pressure on
a. the supply of labor.
b. the final product price.
c. wages.
d. the demand for labor.
c
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Companies often find it to be more profitable to use a commission or piece-rate system of compensation rather than a salary system, yet many firms continue to pay their workers salaries
List three reasons why a firm would choose a salary system of compensation.
We have drawn the SAS and SP curves as straight lines for convenience. More realistically, rising output ________ the structural unemployment problem and the effect of this on wages causes those curves to ________ in slope
A) aggravates, increase B) aggravates, decrease C) alleviates, increase D) alleviates, decrease
Labor's share of national income is equal to ________
A) 1 - b B) WN/PY C) (W/P)/(Y/N) D) All of the above
Patricia's nominal annual income in 2009 was $60,000. If the rate of inflation is constant at 10 percent, in order to keep Patricia's real income constant, her nominal income in the year 2010 should be:
A. $60,000. B. $54,000. C. $66,000. D. $70,000.