Fill-in-the-Blank
1. Fill in the blanks to make the following statements correct.
a. If all workers were identical, all jobs had identical
working conditions, and labour markets were perfectly
competitive, then all wages would be.
b. In reality there is wide variation in wages. Four reasons
for wage differentials are , , , and
c. A country that invests in its public education and public
health systems is improving the of its population.
d. If there are two groups of workers in a competitive labour
market, and one group becomes discriminated against,
the labour supply curve for jobs that remain available for
that group will shift to the and the wages for these
jobs will.
2. Fill in the blanks to make the following statements correct.
a. If workers in a competitive labour market join together to
form a union, the effect is likely to be a wage and
quantity of labour demanded.
b. If firms in a competitive labour market form an
employers’ association and become a monopsonist,
employment will be and wages will be
than in the competitive outcome.
c. A legislated and binding minimum wage in a competitive
labour market will lead to a(n) in the quantity of