Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. $\begin{array}{cc} \begin{array}{cc} \text { Labor } & \text { Output } \\ \hline 0& 0 \\ 1 & 15 \\ 2 & 29 \\ 3 & 42 \\ 4 & 54 \\ 5 & 65 \\ 6 & 75 \end{array} \begin{array}{c} \text { Price }\left(D_{1}\right) \\ \hline \$ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ \end{array} \begin{array}{c} \text { Price }\left(\mathrm{D}_{2}\right) \\ \hline \$ 10.00 \\ 9.50 \\ 9.00 \\ 8.50 \\ 7.50 \\ 6.50 \\ 5.50 \end{array} \end{array}$ -Suppose the firm's product demand is given by the column labeled D1.If the wage rate is $120,the firm will achieve maximum profit by hiring _____ workers.

A) 3 B) 4 C) 5 D) 6 A) 3 B) 4 C) 5 D) 6

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. $\begin{array}{cc} \begin{array}{cc} \underline{\text { Labor }} & \underline{\text { Output }} \\ 0 & 0 \\ 1 & 15 \\ 2 & 29 \\ 3 & 42 \\ 4 & 54 \\ 5 & 65 \end{array} \begin{array}{r} \underline{\text { Price }} \\ \$ 2.20 \\ 2.00 \\ 1.80 \\ 1.60 \\ 1.40 \\ 1.20 \end{array} \end{array}$ -If the wage is $11.00,how many workers will this profit-maximizing firm choose to employ?

A) 2 B) 3 C) 4 D) 5 A) 2 B) 3 C) 4 D) 5

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. $\begin{array}{cc} \begin{array}{cc} \text { Labor } & \text { Output } \\ \hline 0& 0 \\ 1 & 15 \\ 2 & 29 \\ 3 & 42 \\ 4 & 54 \\ 5 & 65 \\ 6 & 75 \end{array} \begin{array}{c} \text { Price }\left(D_{1}\right) \\ \hline \$ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ \end{array} \begin{array}{c} \text { Price }\left(\mathrm{D}_{2}\right) \\ \hline \$ 10.00 \\ 9.50 \\ 9.00 \\ 8.50 \\ 7.50 \\ 6.50 \\ 5.50 \end{array} \end{array}$ -Suppose the firm's product demand is given by the column labeled D2.If the wage rate is $100,the firm will achieve maximum profit by hiring _____ workers

A) 2 B) 3 C) 4 D) 5 A) 2 B) 3 C) 4 D) 5

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. $\begin{array}{cc} \begin{array}{cc} \text { Labor } & \text { Output } \\ \hline 0& 0 \\ 1 & 15 \\ 2 & 29 \\ 3 & 42 \\ 4 & 54 \\ 5 & 65 \\ 6 & 75 \end{array} \begin{array}{c} \text { Price }\left(D_{1}\right) \\ \hline \$ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ 10.00 \\ \end{array} \begin{array}{c} \text { Price }\left(\mathrm{D}_{2}\right) \\ \hline \$ 10.00 \\ 9.50 \\ 9.00 \\ 8.50 \\ 7.50 \\ 6.50 \\ 5.50 \end{array} \end{array}$ -Suppose the firm's product demand is given by the column labeled D1.If the wage rate rises from $100 to $130,the firm will reduce the quantity of labor employed by _____ unit(s)

A) 0 B) 1 C) 2 D) 3 A) 0 B) 1 C) 2 D) 3

Exam 5: The Demand for Labor

In comparing two otherwise identical industries X and Y,an economist finds that labor demand is more elastic in industry X.Which of the following would support this finding?

Free

(Multiple Choice)

5.0/5

(80)

Question 1

Correct Answer:

Verified

C

A competitive firm will never choose to operate in stage(s):

Free

(Multiple Choice)

4.8/5

(76)

Question 2

Correct Answer:

Verified

B

are based on the short-run production function in the graph at right. -The "law of diminishing marginal returns" begins to take effect at labor input level:

Free

(Multiple Choice)

4.9/5

(87)

Question 3

Correct Answer:

Verified

B

The marginal revenue product schedule:

(Multiple Choice)

4.8/5

(87)

Question 4

Skilled labor will benefit from an increase in the wage rate paid to unskilled labor if:

(Multiple Choice)

4.8/5

(86)

Question 5

(appendix)The slope of an isoquant at any point reflects the:

(Multiple Choice)

4.9/5

(84)

Question 6

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. Labor Output 0 0 1 15 2 29 3 42 4 54 5 65 6 75 Price \ 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Price \ 10.00 9.50 9.00 8.50 7.50 6.50 5.50 -Suppose the firm's product demand is given by the column labeled D₁.If the wage rate is $120,the firm will achieve maximum profit by hiring _____ workers.

(Multiple Choice)

4.9/5

(71)

Question 7

When deriving the market demand curve for a particular type of labor,one must:

(Multiple Choice)

4.8/5

(77)

Question 8

Since 1980,the number of jobs in manufacturing has:

(Multiple Choice)

4.8/5

(69)

Question 9

are based on the short-run production function in the graph at right. -The "zone of production" consists of labor inputs over the range of:

(Multiple Choice)

4.8/5

(86)

Question 10

Which of the following best describes the output effect of a wage decrease?

(Multiple Choice)

4.9/5

(84)

Question 11

Value of marginal product (VMP)differs from marginal revenue product (MRP)in that:

(Multiple Choice)

4.7/5

(87)

Question 12

The short-run labor demand curve of a competitive firm is:

(Multiple Choice)

4.7/5

(77)

Question 13

Compared to the long-run labor demand curve,the firm's short-run curve is typically:

(Multiple Choice)

4.9/5

(81)

Question 14

In the textile industry,industrial robots and assembly line workers are gross substitutes.Accordingly,the drop in the price of robots has:

(Multiple Choice)

4.8/5

(90)

Question 15

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. 0 0 1 15 2 29 3 42 4 54 5 65 \ 2.20 2.00 1.80 1.60 1.40 1.20 -If the wage is $11.00,how many workers will this profit-maximizing firm choose to employ?

(Multiple Choice)

4.8/5

(63)

Question 16

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. Labor Output 0 0 1 15 2 29 3 42 4 54 5 65 6 75 Price \ 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Price \ 10.00 9.50 9.00 8.50 7.50 6.50 5.50 -Suppose the firm's product demand is given by the column labeled D₂.If the wage rate is $100,the firm will achieve maximum profit by hiring _____ workers

(Multiple Choice)

4.7/5

(77)

Question 17

Which of the following equalities holds when the profit-maximizing quantity of labor is employed in the short?run?

(Multiple Choice)

4.8/5

(79)

Question 18

The market wage increases from $9 to $11and the firm responds by reducing its labor force by 16%.The wage elasticity coefficient is:

(Multiple Choice)

4.9/5

(72)

Question 19

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. Labor Output 0 0 1 15 2 29 3 42 4 54 5 65 6 75 Price \ 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Price \ 10.00 9.50 9.00 8.50 7.50 6.50 5.50 -Suppose the firm's product demand is given by the column labeled D₁.If the wage rate rises from $100 to $130,the firm will reduce the quantity of labor employed by _____ unit(s)

(Multiple Choice)

4.8/5

(70)

Question 20

In comparing two otherwise identical industries X and Y,an economist finds that labor demand is more elastic in industry X.Which of the following would support this finding?

A competitive firm will never choose to operate in stage(s):

are based on the short-run production function in the graph at right. -The "law of diminishing marginal returns" begins to take effect at labor input level:

The marginal revenue product schedule:

Skilled labor will benefit from an increase in the wage rate paid to unskilled labor if:

(appendix)The slope of an isoquant at any point reflects the:

When deriving the market demand curve for a particular type of labor,one must:

Since 1980,the number of jobs in manufacturing has:

are based on the short-run production function in the graph at right. -The "zone of production" consists of labor inputs over the range of:

Which of the following best describes the output effect of a wage decrease?

Value of marginal product (VMP)differs from marginal revenue product (MRP)in that:

The short-run labor demand curve of a competitive firm is:

Compared to the long-run labor demand curve,the firm's short-run curve is typically:

In the textile industry,industrial robots and assembly line workers are gross substitutes.Accordingly,the drop in the price of robots has:

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive. 0 0 1 15 2 29 3 42 4 54 5 65 \ 2.20 2.00 1.80 1.60 1.40 1.20 -If the wage is $11.00,how many workers will this profit-maximizing firm choose to employ?

Which of the following equalities holds when the profit-maximizing quantity of labor is employed in the short?run?

The market wage increases from $9 to $11and the firm responds by reducing its labor force by 16%.The wage elasticity coefficient is:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

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