1. Suppose Ali receives a wage increase from 200 TL to 400 TL per hour, holding his non-labor incomeconstant. Then his hours of work per month necessarily increase in response to increased hourlywages.2. Unemployment can arise in an economy even when there is no imbalance between the number ofavailable workers and number of available jobs; and there is no mismatch between the skills ofavailable workers and skill requirements of available jobs.3. The long-run labor demand is more elastic than the short-run labor demand as firms can adjust bothcapital and labor in the long-run; and they can fully take advantage of changes in the price of labor. True/False/Uncertain

1. Suppose Ali receives a wage increase from 200 TL to 400 TL per hour, holding his non-labor income constant. Then his hours of work per month necessarily increase in response to increased hourly wages.

1. Suppose Ali receives a wage increase from 200 TL to 400 TL per hour, holding his non-labor income constant. Then his hours of work per month necessarily increase in response to increased hourly wages.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Suppose Ali receives a wage increase from 200 TL to 400 TL per hour, holding his non-labor income
constant. Then his hours of work per month necessarily increase in response to increased hourly
wages.
2. Unemployment can arise in an economy even when there is no imbalance between the number of
available workers and number of available jobs; and there is no mismatch between the skills of
available workers and skill requirements of available jobs.
3. The long-run labor demand is more elastic than the short-run labor demand as firms can adjust both
capital and labor in the long-run; and they can fully take advantage of changes in the price of labor.

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