3 Written Questions

1. theory of efficiency wages
2. raises wage of unskilled workers therefore raising the quantity of labor supplied and reduce the quantity demanded
3. Market power of unions, pushes union wages up and creates surplus of labor

2 Multiple Choice Questions

1. the time it takes to search for jobs that best suit tastes and skills
   1. First Reason
   2. Second Reason
   3. Fourth Reason
   4. Third Reason
2. minimum wage laws
   1. Fourth Reason
   2. Third Reason
   3. First Reason
   4. Second Reason

2 True/False Question

1. High wages can... → raises wage of unskilled workers therefore raising the quantity of labor supplied and reduce the quantity demanded
   

   True        False

2. Theory of Efficiency Wages → firms find it profitable to pay wages above equilibrium level.
   

   True        False