Exam 15: The Labor Market

The figure given below shows the income-leisure trade off of an individual. Figure 15.6 AB and AC: Income constraints of the individual I₁,I₂,and I₃ curves show the income leisure choices of the individual. -In Figure 15.6,if the income constraint of the individual is given by the line AB,he maximizes his utility by choosing _____ hours of leisure and earns an income of _____.

A firm employing secretaries and steelworkers should ideally pay equal wages to both the groups of workers irrespective of the type of job each group does.

The distortions created by income taxes could be minimized by changing the progressive tax system to a flat tax system.

If the quantity demanded for labor is more than the quantity supplied,there will be unemployment.

The idea of comparable worth implies that wages are to be determined by the job characteristics and not merely by the interaction of demand and supply.

When white males resist to share responsibilities with members of a minority group,it is termed as:

In a perfectly competitive labor market,the minimum wage policy adopted by the government raises employment.

The following figures show the demand (D) and supply (S) curves of micro and macro economists. Figure 15.7 - In Figure 15.7,assume that micro- and macroeconomists must be paid the same because of comparable-worth laws.If the wage is $12,then:

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 In the figures, D: Demand curve for labor S: Supply curve of labor MRP: Marginal revenue product MFC: Marginal factor cost -In Figure 15.5,if a minimum wage of $10 is set by the government,then in market B:

The figure given below shows the income-leisure trade off of an individual. Figure 15.6 AB and AC: Income constraints of the individual I₁,I₂,and I₃ curves show the income leisure choices of the individual. -Which of the following factors is likely to be responsible for the inward rotation of the income constraint from AB to AC in Figure 15.6?

The figure below shows the supply curve for labor. Figure 15.1 - Refer to Figure 15.1.When wage rate increases from W₂ to W₃ :

Why do skilled workers earn relatively higher wages than unskilled workers?

The labor demand curve is based on the firm's:

Which of the following are benefits created by the immigrants?

Why does the labor market have more than one equilibrium wage rate?

Reliance on indicators of productivity such as education,experience,and test scores may keep some very good people from getting a job and may result in hiring unproductive people.This is called:

Which of the following is not a reason for compensating wage differentials?

Wage differentials exist because not all workers and all jobs are alike.

Which of the following statements about employer prejudice is true?

Since we all like to get richer,so when wage rate increases we always like to work longer hours to make more income.