Question 1

The willingness to work a certain amount of time at a given wage rate is known as

Accepted Answer

A)  Labor supply.
B)  Labor demand.
C)  Derived supply.
D)  Derived demand. A

Question 2

The market supply of labor represents the sum of all individual labor supply decisions.

Accepted Answer

A) True 
 B)False

Question 3

The marginal revenue product establishes

Accepted Answer

A)  An upper limit to the wage rate an employer is willing and able to pay.
B)  A lower limit to profit on the sale of a unit of output.
C)  A lower limit to the productivity of a worker.
D)  A lower limit to the wage rate demands of laborers.

Question 4

The marginal revenue product of labor curve is the firm's

Accepted Answer

A)  MPP of labor curve divided by the wage rate.
B)  Marginal revenue curve.
C)  Demand curve for labor.
D)  Marginal physical product multiplied by the wage rate.

Question 5

One In the News article is titled "Challenging Work and Corporate Responsibility Will Lure MBA Grads." In the headline, which of the following determinants of labor supply is most explicitly mentioned?

Accepted Answer

A)  Tastes.
B)  Taxes.
C)  Prices of consumer goods.
D)  Expectations regarding prices of consumer goods. A

Question 6

In Figure 30.2, unemployed labor at the equilibrium wage is equal to

Accepted Answer

A)  34 workers.
B)  28 workers.
C)  Zero workers.
D)  10 workers.

Question 7

Table 30.4 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided, compute the marginal physical product (MPP)  of the hairstylists, total revenue, and the marginal revenue product of the stylists, assuming that a hairstylist charges $60 per appointment.In Table 30.4 suppose a hairstylist is paid $700 per week.How many hairstylists should a profit-maximizing salon hire?

Accepted Answer

A)  1.
B)  2.
C)  3.
D)  4.

Question 8

The labor supply curve will be positively sloped if the substitution effect of wages is

Accepted Answer

A)  Equal to the income effect of wages.
B)  Stronger than the income effect of wages.
C)  Weaker than the income effect of wages.
D)  Negative.

Question 9

Which of the following would not shift the market demand for labor, ceteris paribus?

Accepted Answer

A)  The wage paid to labor.
B)  The demand for final products.
C)  The productivity of labor.
D)  The number of employers.

Question 10

The number of people employed in the competitive market depicted in Figure 30.2 at a wage of $20.00 per hour is

Accepted Answer

A)  0.
B)  160.
C)  180.
D)  192.

Question 11

The labor supply curve will be negatively sloped if the substitution effect of wages is

Accepted Answer

A)  Weaker than the income effect of wages.
B)  Stronger than the income effect of wages.
C)  Equal to the income effect of wages.
D)  Negative.

Question 12

President Obama wanted to increase the federal minimum wage.

Accepted Answer

A) True 
 B)False

Question 13

Joe Sabia, an assistant professor of public policy at American University in Washington, DC, says that a 10 percent increase in the minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.If President Obama is successful increasing the minimum wage by 30 percent as explained in "Obama Wants $9.50 Minimum Wage," we can expect

Accepted Answer

A)  Employment to decrease by about 30 percent and prices to increase.
B)  Unemployment to increase by about 30 percent and prices to decrease.
C)  Retail employment to decrease by about 3 percent and young workers'employment to decrease by about10) 2 percent.
D)  Prices to increase and unemployment to increase by about 3 percent.

Question 14

Which of the following is not true about the demand for factors of production?

Accepted Answer

A)  It is derived from the demand for the goods and services the firm produces.
B)  It is a function of diminishing marginal physical product.
C)  It depends on the firm's expected sales and output.
D)  It is a function of the elasticity of supply.

Question 15

A decreasing marginal utility of income contributes to the upward slope of an individual's supply curve.

Accepted Answer

A) True 
 B)False

Question 16

According to the In The News article "Mauer, Twins Agree to Eight-Year, $184 Million Extension," high salaries of professional baseball player are due to

Accepted Answer

A)  A player having a high marginal physical product.
B)  A large supply of players of that caliber.
C)  A player having a high marginal revenue product.
D)  A player having a high diminishing marginal product.

Question 17

If the demand for hair gel increases, the effect on the hair gel manufacturing job market will be to

Accepted Answer

A)  Increase the demand for labor and increase equilibrium wages.
B)  Reduce the supply of labor and increase equilibrium wages.
C)  Decrease the demand for labor and reduce equilibrium wages.
D)  Have no impact on equilibrium wages. A

Question 18

If there is an increase in the number of workers who want to work as accountants, there will be a

Accepted Answer

A)  Leftward shift of the labor supply curve.
B)  Rightward shift of the labor supply curve.
C)  Movement up the labor supply curve to the right.
D)  Movement down the labor supply curve to the left.

Question 19

If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?

Accepted Answer

A)  Demand for labor should shift to the left.
B)  Supply of labor should shift to the left.
C)  Demand for labor should shift to the right.
D)  Supply of labor should shift to the right.

Question 20

In Figure 30.2, the equilibrium wage rate is

Accepted Answer

A)  $24 per hour.
B)  $20 per hour.
C)  $16 per hour.
D)  $12 per hour.

Exam 16: The Labor Market

The willingness to work a certain amount of time at a given wage rate is known as

Correct Answer
verified
A

The market supply of labor represents the sum of all individual labor supply decisions.

Correct Answer
verified

The marginal revenue product establishes

Correct Answer
verified

The marginal revenue product of labor curve is the firm's

Correct Answer
verified

One In the News article is titled "Challenging Work and Corporate Responsibility Will Lure MBA Grads." In the headline, which of the following determinants of labor supply is most explicitly mentioned?

Correct Answer
verified
A

In Figure 30.2, unemployed labor at the equilibrium wage is equal to

Correct Answer
verified

Correct Answer
verified

The labor supply curve will be positively sloped if the substitution effect of wages is

Correct Answer
verified

Which of the following would not shift the market demand for labor, ceteris paribus?

Correct Answer
verified

The number of people employed in the competitive market depicted in Figure 30.2 at a wage of $20.00 per hour is

Correct Answer
verified

The labor supply curve will be negatively sloped if the substitution effect of wages is

Correct Answer
verified

President Obama wanted to increase the federal minimum wage.

Correct Answer
verified

Correct Answer
verified

Which of the following is not true about the demand for factors of production?

Correct Answer
verified

A decreasing marginal utility of income contributes to the upward slope of an individual's supply curve.

Correct Answer
verified

According to the In The News article "Mauer, Twins Agree to Eight-Year, $184 Million Extension," high salaries of professional baseball player are due to

Correct Answer
verified

If the demand for hair gel increases, the effect on the hair gel manufacturing job market will be to

Correct Answer
verified
A

If there is an increase in the number of workers who want to work as accountants, there will be a

Correct Answer
verified

If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?

Correct Answer
verified

In Figure 30.2, the equilibrium wage rate is

Correct Answer
verified

Exam 16: The Labor Market

The willingness to work a certain amount of time at a given wage rate is known as

Correct AnswerverifiedA

The market supply of labor represents the sum of all individual labor supply decisions.

Correct AnswerverifiedShow Answer

The marginal revenue product establishes

Correct AnswerverifiedShow Answer

The marginal revenue product of labor curve is the firm's

Correct AnswerverifiedShow Answer

One In the News article is titled "Challenging Work and Corporate Responsibility Will Lure MBA Grads." In the headline, which of the following determinants of labor supply is most explicitly mentioned?

Correct AnswerverifiedA

In Figure 30.2, unemployed labor at the equilibrium wage is equal to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The labor supply curve will be positively sloped if the substitution effect of wages is

Correct AnswerverifiedShow Answer

Which of the following would not shift the market demand for labor, ceteris paribus?

Correct AnswerverifiedShow Answer

The number of people employed in the competitive market depicted in Figure 30.2 at a wage of $20.00 per hour is

Correct AnswerverifiedShow Answer

The labor supply curve will be negatively sloped if the substitution effect of wages is

Correct AnswerverifiedShow Answer

President Obama wanted to increase the federal minimum wage.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not true about the demand for factors of production?

Correct AnswerverifiedShow Answer

A decreasing marginal utility of income contributes to the upward slope of an individual's supply curve.

Correct AnswerverifiedShow Answer

According to the In The News article "Mauer, Twins Agree to Eight-Year, $184 Million Extension," high salaries of professional baseball player are due to

Correct AnswerverifiedShow Answer

If the demand for hair gel increases, the effect on the hair gel manufacturing job market will be to

Correct AnswerverifiedA

If there is an increase in the number of workers who want to work as accountants, there will be a

Correct AnswerverifiedShow Answer

If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?

Correct AnswerverifiedShow Answer

In Figure 30.2, the equilibrium wage rate is

Correct AnswerverifiedShow Answer

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