Determine if the following statement is true, false, or uncertain: "An increase in non-wage compensation, such as a yearly bonus, will cause individuals to substitute some of the hours they spent working into more leisure time. Because the worker is substituting leisure for labor, this is an example of the substitution effect at work."

a. True b. False c. Uncertain

Determine if the following statement is true, false, or uncertain: "A firm with product market power has some ability to control prices. With this power, a firm will hire more labor than a competitive firm would, in order to maximize profit"

a. True b. False c. Uncertain

Determine if the following statement is true, false, or uncertain: "If two inputs are complements in production, then they must also be gross complements in production."

a. True b. False c. Uncertain

If labor supply and labor demand both increase:

a. The market clearing wage will rise but employment will stay the same b. Employment will rise but the market wage may rise, fall, or stay the same. c. Both employment and the market clearing wage will rise. 1 d. There will be no change in the equilibrium.

Determine if the following statement is true, false, or uncertain: "The labor force participation rate and the unemployment rate are not really related. If the labor force participation rate changes, it will not impact the unemployment rate"

a. True b. False c. Uncertain

Determine if the following statement is true, false, or uncertain: "Non-wage compensation given to employees almost always has a dollar value attached to it (for example, the cost a firm pays to provide its workers health insurance). Thus, when it comes to profit maximization, a firm can always treat an increase in non-wage compensation just like it would treat an increase in the wage."

a. True b. False c. Uncertain