1. Labor market equilibrium occurs at a real wage at which the quantity demanded for labor equals the quantity __________ of labor. 2. The labor __________ (demand/supply) curve is based on the...

1. Labor market equilibrium occurs at a real wage at which the quantity demanded for labor equals the quantity __________ of labor.

2. The labor __________ (demand/supply) curve is based on the decisions of __________ (firms/workers); these decisions include choices such as how many hours to work and how many hours to invest in leisure activities.

3. The labor demand curve is __________ (upward/downward) sloping because a lower real wage entices firms to hire __________ (fewer/more) workers.

4. If wages and employment both fall, this is likely caused by a decrease in the supply for labor. __________ (True/False)