Exam 12: Labor Markets

Wally's Wheat Farm sells its output and hires its labor in perfectly competitive markets.In the short run,Wally can vary only one input-labor.In short-run equilibrium,all of the following conditions,except one,will be satisfied.Which is the exception?

One seamstress can sew 2 dresses per day and two seamstresses can sew 5 dresses per day.If the marginal revenue product of hiring the second seamstress is $360,then in a competitive product market

The wage premium for the average college graduate (vs.the average high school graduate)has gone up significantly in recent years.

A firm's labor demand curve is derived from the supply of the goods and services it produces.

In a perfectly competitive labor market,no individual firm's employment decision can affect the market wage because

Which of the following is true along the demand curve for labor?

If the demand for automobiles increases,which of the following would also experience an increase in demand?

Jordan and Jennifer are musicians in New Orleans.Ezra is a musician thinking about moving to New Orleans.Which of the following statements is correct?

-Figure 12-9 shows the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5.If the wage rate is $380 per day,the firm

-Figure 12-8 provides production data for Peg's Pie Shop,indicating the output per day with different numbers of employees.The shop sells its pies and hires its labor in perfectly competitive markets.Currently,the equilibrium price of a pie is $5,and the equilibrium wage rate is $80 per day.In order to maximize profit,Peg's Pie Shop should hire

The demand for labor is likely to decrease if

If bicycles can be sold for $100 each,and the marginal product of hiring a third worker is 2 bicycles,then the marginal revenue product from hiring that worker is

As baby boomers move into their retirement years,the incomes of geriatricians (doctors for the aged)will most likely

The perfectly competitive model is most likely to apply to a labor market in which

Each of the following conditions,except one,must be satisfied in a perfectly competitive labor market.Which is the exception?

The most appropriate type of labor market to analyze

If the wage rate increases,there is an increase in the quantity of labor supplied.This means the labor supply curve shifts outward.