Q1 What are the benefits and costs of job search? Why don't job seekers endlessly search for a higher wage offer?

Q2 What is meant by term acceptance wage? How does a job seeker determine his or her acceptance wage?

Q3 Explain how each of the following would affect the probability that a job searcher will accept the next wage offer and thus affect the expected length of his or her unemployment: (a) a decline in the rate of inflation below the expected one and (b) a decrease in unemployment benefits.

Q4 How do you explain the existence of internal labor markets? What are their advantages to employers?To workers?

Q5 Explain the following statement: "Unions are both a consequence and a cause of internal labor markets." Why might the presence of internal labor markets in a firm encourage unionization?