Reference no: EM13337726

1. Suppose you are a worker. Your cost of working is $6.75. Which of the following are true?

(i) If you accepted a job at a wage of $7.50, you would earn a $0.75 gain from working.

(ii) If you accepted a job at a wage of $6.55, you would earn a $0.20 loss from working.

(iii) If the highest wage any employer is offering is $6.65, you should accept a job at that wage, because thats the best wage offer youll get.

(iv) If you dont accept a job, you will collect whatever unemployment compensation the government is offering.

(v) For you, accepting a job is always better than not accepting a job.

(vi) For you, collecting unemployment compensation is always better than accepting a job. A. i, iv, vi B. i, ii, iii, iv C. i, ii D. i, ii, iv E. iii, iv, v, vi

2. Suppose you are a worker and your cost of working is $8.50. Your cost of working comes from which of the following?

A. Your employers cost of paying your wage and benefits, plus social security taxes

B. Work-related expenses (such as day care) plus the unemployment compensation you cannot collect if you work

C. Work-related expenses (such as parking) plus the wage your employer pays you

D. The wage your employer pays you plus the unemployment compensation you cannot collect if you work

E. Your cost of paying for your education plus your employers cost of paying for your working training program

6. Suppose that you are a worker. Your cost of working is $5.75. Youve submitted an asking wage of $7 but no employer has been willing to pay that much. The highest bid being offered by the remaining employers is $6.10. There is only enough time left for you to withdraw your current asking wage and submit one last ask. Which is your best choice?

A. Withdraw your current ask and submit an asking wage of $7.75.

B. Withdraw your current ask and submit an asking wage of $6.10.

C. Leave your asking wage where it is and let time run out.

D. Withdraw your current ask and submit an asking wage of $5.

7. Suppose that you are an employer in the first experiment variation. In each round of this variation, you have a buyer value of $7, which means that the most revenue you could earn from hiring a worker is $7. All trades taking place are at wages above $7. You have not hired a worker in any of the rounds. Time is about to run out in the last round of this variation. What should you conclude?

A. There must be a problem with the software. A previous screen said that the experiment is designed to let everybody trade and earn a gain.

B. Its better to trade than to not trade, so you should submit a bid to hire at a wage high enough to get a trade, even if it is above $7.

C. It is better for you not to trade at all than to trade and suffer a loss.

D. There must be a problem with the software. A previous screen said that everyone should get a new buyer value or worker cost at the beginning of each round--you should not have been stuck with the same buyer value in different rounds