Exam 8: The Labor Market

The labor-supply curve depicts the quantity of _____ at alternative _____.

Ceteris paribus,a firm will hire more workers the higher the wage rate.

Which of the following is true about the equilibrium market wage for a particular industry?

An increase in the equilibrium price in the product market results in:

Other things being equal,higher wage rates will:

Generally,as the number of hours worked increases,the marginal utility of leisure time tends to:

When the minimum wage is raised,ceteris paribus:

The concept of derived demand means that,for example,the demand for cotton pickers is determined from the demand for clothing made of cotton.

An upward-sloping supply curve of labor reflects the:

As a person works more,the number of additional hours that he is willing to work is determined by the trade-off between increasing:

The labor-supply curve is downward sloping because of the law of diminishing marginal returns.

At the equilibrium wage,there is still some unemployment because the wage is so low.

Which of the following will not shift the labor supply curve to the right,ceteris paribus?

If it difficult to measure the MRP of a CEO,this means that the CEO should not be paid very much because he or she brings little value to the company.

Figure 8.3-Apple Production -In Figure 8.3,at a wage rate of $30 per hour,this firm will hire _____ workers.

When the law of diminishing returns applies,which of the following would rise with increased employment of labor,ceteris paribus?

If labor productivity increases,wages can rise without sacrificing jobs.

If labor productivity rises,then wages:

A minimum wage creates a shortage of workers.

Folly Farms has no control over the wage it pays its laborers or the price it gets per bushel.The following table shows the relationship between the number of workers the farm hires and its output.