Determinants of Wages

• What do wages represent in the labor market?

  Hourly payment for work
• Match the terms with their definitions:

  Wages ↔️ Hourly payment for work

  Earnings ↔️ Total income from labor, including wages and benefits
• Higher productivity increases the demand for labor.


  True
• Higher wages encourage more workers to enter the labor market
• The equilibrium wage is the point where labor supply equals labor demand
• Technological advancements may reduce the demand for labor due to automation
• Qualified workers with skills and experience enhance labor supply.


  True
• Earnings include wages and additional benefits such as bonuses, commissions, and overtime pay
• Why is the supply and demand model important in the labor market?

  Understanding wage determination
• Match the terms with their definitions:

  Supply ↔️ Number of workers available

  Demand ↔️ Employers' need for labor
• Increased demand for products raises the demand for labor.


  True
• Higher wage rates increase the supply of labor.


  True
• Higher wage rates increase the supply of labor.


  True
• What effect does more job availability have on labor supply?

  Boosts supply
• Why would a company offering $25/hour attract more workers than one offering $15/hour?

  Higher wage rates
• What effect does more job availability have on labor supply?

  Boosts supply
• What is included in earnings besides wages?

  Bonuses, overtime pay
• Earnings encompass wages and additional benefits such as bonuses and overtime pay.


  True
• Higher wage rates increase labor supply.

  True
• Technological advancements may reduce demand for some jobs.

  True
• What is the effect of higher worker productivity on labor demand?

  Increases demand
• What economic condition typically boosts labor demand?

  Strong economic growth
• Strong economic growth typically boosts demand for labor
• More available jobs in the market boost the supply of labor
• What is the primary effect of higher wage rates on labor supply?

  Increases supply
• What is the effect of higher wage rates on the supply of labor?

  Increases supply
• What aspects of the population impact the overall labor pool supply?

  Size and age distribution
• The equilibrium wage is found at the intersection of the labor supply and labor demand curves.


  True
• The market structure of an industry can influence wage levels.


  True
• Earnings include benefits, while wages do not.


  True
• Higher wage rates attract more workers, increasing the labor supply
• What is the equilibrium wage in the labor market?

  Where supply equals demand
• How does the supply and demand model explain wage determination in the labor market?

  Balances worker needs and employer demands
• What is the effect of higher business profitability on labor demand?

  Increases labor demand
• Higher wages attract more workers, increasing labor supply
• The ability of workers to relocate increases worker mobility
• Higher wages attract more workers, increasing labor supply
• A company offering $25/hour will attract more workers than one offering $15/hour.


  True
• Match the term with its definition:

  Wages ↔️ Hourly payment for work

  Earnings ↔️ Total income from labor
• The supply and demand model is fundamental to understanding wage determination