Question 1

Identify two reasons why an individual's labor supply curve is typically upward-sloping.

Accepted Answer

(1)As the amount of labor that a worker

Question 2

The wage rate is

Accepted Answer

A) Not related to the value of leisure because people need to relax. 
B) Not related to labor supply because people must work to survive. 
C) The opportunity cost of labor. 
D) The payment for labor. 
A) Not related to the value of leisure because people need to relax. 
B) Not related to labor supply because people must work to survive. 
C) The opportunity cost of labor. 
D) The payment for labor.

Question 3

When people are standing in line for jobs and there are more applicants than jobs,then the labor market is characterized by a

Accepted Answer

A) Shortage of jobs from the point of view of the buyer in the labor market. 
B) Surplus of jobs from the point of view of the seller in the labor market. 
C) Surplus of labor. 
D) Shortage of labor. 
A) Shortage of jobs from the point of view of the buyer in the labor market. 
B) Surplus of jobs from the point of view of the seller in the labor market. 
C) Surplus of labor. 
D) Shortage of labor.

Question 4

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) 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.

Question 5

Table 30.1 $$\begin{array} { | c | r | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { workers (per } \
\text { hour) }
\end{array} & \begin{array} { c } 
\text { Total output } \
\text { (per hour) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { physical } \
\text { product } \
\text { (output per } \
\text { worker) }
\end{array} & \begin{array} { c } 
\text { Total revenue } \
\text { (dollars per } \
\text { hour) }
\end{array} & \begin{array} { c } 
\text { Marginal revenue } \
\text { product (dollars } \
\text { per hour worker) }
\end{array} \
\hline 1 & 4 & \ldots & & \ldots \
\hline 2 & 19 & & \
\hline 3 & 15 & & \
\hline 4 & 19 & & \
\hline 5 & 22 & & \
\hline
\end{array}$$ Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.1,the marginal physical product of the third worker hired is

Accepted Answer

A) 15 units per hour. 
B) 4 units per hour. 
C) 3 units per hour. 
D) 5 units per hour. 
A) 15 units per hour. 
B) 4 units per hour. 
C) 3 units per hour. 
D) 5 units per hour.

Question 6

For wages to be higher without sacrificing jobs,productivity must decrease.

Accepted Answer

A) True 
 B)False

Question 7

Assume the apple market is competitive.If citizens want wages and the number of available jobs for apple pickers to increase,the best strategy would be to

Accepted Answer

A) Insist that the government establish a minimum wage for apple pickers. 
B) Boycott apples until wages increased. 
C) Buy more apples. 
D) Insist that the sellers raise the price of apples. 
A) Insist that the government establish a minimum wage for apple pickers. 
B) Boycott apples until wages increased. 
C) Buy more apples. 
D) Insist that the sellers raise the price of apples.

Question 8

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. 
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 9

If payroll taxes are increased,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. 
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 10

If the number of employers for a particular type of labor increases,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. 
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 11

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. 
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 12

The elasticity of labor supply does not depend on

Accepted Answer

A) The demand for labor. 
B) The prices of consumer goods. 
C) Income and wealth. 
D) Expectations for income or consumption. 
A) The demand for labor. 
B) The prices of consumer goods. 
C) Income and wealth. 
D) Expectations for income or consumption.

Question 13

An effective minimum wage will increase the quantity demanded of labor.

Accepted Answer

A) True 
 B)False

Question 14

The willingness and ability to work specific amounts of time at alternative wage rates is known as

Accepted Answer

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

Question 15

The demand for labor is downward-sloping because of

Accepted Answer

A) Rising MPP. 
B) Falling MC. 
C) Diminishing returns to labor. 
D) Rising P. 
A) Rising MPP. 
B) Falling MC. 
C) Diminishing returns to labor. 
D) Rising P.

Question 16

A production process is defined as

Accepted Answer

A) The manufacturing of goods and services. 
B) A specific combination of resources used to produce a good or service. 
C) A means by which labor generates revenue. 
D) A means by which jobs are created for workers. 
A) The manufacturing of goods and services. 
B) A specific combination of resources used to produce a good or service. 
C) A means by which labor generates revenue. 
D) A means by which jobs are created for workers.

Question 17

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

Accepted Answer

A) 34 workers. 
B) 28 workers. 
C) 0 workers. 
D) 10 workers. 
A) 34 workers. 
B) 28 workers. 
C) 0 workers. 
D) 10 workers.

Question 18

A firm should hire an additional worker as long as the wage rate is

Accepted Answer

A) Greater than the MRP. 
B) Greater than the MPP. 
C) Less than or equal to the MRP. 
D) Less than the MPP. 
A) Greater than the MRP. 
B) Greater than the MPP. 
C) Less than or equal to the MRP. 
D) Less than the MPP.

Question 19

An individual's labor supply curve

Accepted Answer

A) Slopes upward initially,and then may bend backward. 
B) Slopes downward initially,and then may bend upward. 
C) Always slopes downward. 
D) Always slopes upward. 
A) Slopes upward initially,and then may bend backward. 
B) Slopes downward initially,and then may bend upward. 
C) Always slopes downward. 
D) Always slopes upward.

Question 20

Campbell loves to work.He does not receive any enjoyment from leisure time.The last dollar that he earns each year means just as much to him as the first dollar.Which of the following best describes the shape of Campbell's labor supply curve?

Accepted Answer

A) Upward-sloping to the right. 
B) Vertical. 
C) Downward-sloping to the right. 
D) Horizontal. 
A) Upward-sloping to the right. 
B) Vertical. 
C) Downward-sloping to the right. 
D) Horizontal.

Exam 30: The Labor Market

Identify two reasons why an individual's labor supply curve is typically upward-sloping.

The wage rate is

When people are standing in line for jobs and there are more applicants than jobs,then the labor market is characterized by a

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

For wages to be higher without sacrificing jobs,productivity must decrease.

Assume the apple market is competitive.If citizens want wages and the number of available jobs for apple pickers to increase,the best strategy would be to

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

If payroll taxes are increased,there will be a

If the number of employers for a particular type of labor increases,which of the following shifts should occur in the labor market for the particular type of labor?

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?

The elasticity of labor supply does not depend on

An effective minimum wage will increase the quantity demanded of labor.

The willingness and ability to work specific amounts of time at alternative wage rates is known as

The demand for labor is downward-sloping because of

A production process is defined as

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

A firm should hire an additional worker as long as the wage rate is

An individual's labor supply curve

Campbell loves to work.He does not receive any enjoyment from leisure time.The last dollar that he earns each year means just as much to him as the first dollar.Which of the following best describes the shape of Campbell's labor supply curve?

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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