Exam 5: Frictions in the Labor Market

When a firm hires a fourth worker, its wage rate goes from $80 a worker to $90. The marginal revenue product of the fourth worker is $100. If the firm hires the fourth worker, its profits

A firm could profitably pay for a worker's general training if

The marginal product of a new worker is 80 units and the marginal expense of a new worker is $800. The marginal product of hiring current workers another hour is 10 units and the marginal expense of hiring current workers another hour is $12. If the firm needs extra hours of work (assuming the work could be done by either the new or current workers), it should

A mandated increase in overtime pay is likely to

The use of an internal labor market implies that

A firm employs 10 workers at a weekly wage of $500. If it employs an eleventh worker, it has to raise all of its workers wage to $520. The eleventh worker adds $750 a week to revenues. If the firm hires the eleventh worker, its weekly profits will

Initially, when a firm hires a fourth worker, its wage rate goes from $80 a worker to $90. The marginal revenue product of the fourth worker is $100. Then the government imposes a minimum wage of $90 a worker. If the firm now hires the fourth worker, its profits will

The present value of a firm's earnings over two periods is equal to its earnings in the initial period plus the ________ value of its earnings in the next period, and will ________ as the interest rate rises.

Use of temporary-help agencies

A quasi-fixed cost of labor is a cost that

A mandated increase in overtime pay is likely to

Table 5.1 Two-Period Training Model -A profit-maximizing firm which wants to provide firm-specific training to its workers will pay ________ in the training period and ________ after training is completed. (See Table 5.1 for definitions of abbreviations.)

General training is usually paid for by

Members of certain groups have the right to sue employers if discriminated against. Other things the same, then according to the model of quasi-fixed costs, this right will tend to

Table 5.1 Two-Period Training Model -A profit-maximizing firm which wants to train its workers during the first period CANNOT (see Table 5.1 for definitions of abbreviations)

A firm is currently employing 10 workers. To hire an 11th worker, it must raise its weekly pay by $5 and pay the 11th worker $100. What is the marginal expense of the hiring the 11th worker?

Policies which protect workers against "unjust dismissal" have been shown to cause

Two employers pay a wage of $10 an hour. Employer A is a monopsony while Employer B hires in a competitive labor market. Both firms sell their output in competitive markets. Which of the following will be true?

After general training, the employee's wage will be

Which of the following is definitely NOT a quasi-fixed cost of labor?