Question 1
What does the price setting curve primarily determine?
Question 2
What is the principal axis for plotting employment level in the wage setting curve?
Question 3
How does a high unemployment rate affect firms' wage setting decisions?
Question 4
What motivates firms to offer higher wages to employees in the context of employment rent?
Question 5
Which factor is NOT considered by firms when maximizing profit via price setting?
Question 6
Which element is NOT directly used in determining firms' nominal wage decision?
Question 7
Why can job seekers not convince firms to hire them at lower wages according to Nash equilibrium characteristics?
Question 8
What does the concept of 'employment rent' motivate according to firms' wage setting decisions?
Question 9
In the context of labor market equilibrium, what does the intersection of wage and price setting curves determine?
Question 10
What does the wage setting curve plot?
Question 11
How does a simplified model represent profit in the context of price setting?
Question 12
What is the relationship between real wage and unemployment rate as described by the wage setting curve?
Question 13
What is the significance of real wage to both firms and workers?
Question 14
Which observation supports the validity of the wage setting curve based on US data from 1979-2013?
Question 15
How does the wage setting curve shift with changes in the unemployment rate?