Question 1

Labor unions are able to maintain _____ wages for union members by _____ the market.

Accepted Answer

A)  Above-equilibrium;excluding some workers from 
B)  Above-equilibrium;including all workers in 
C)  Below-equilibrium;excluding some workers from 
D)  Below-equilibrium;including all workers in 
A)  Above-equilibrium;excluding some workers from 
B)  Above-equilibrium;including all workers in 
C)  Below-equilibrium;excluding some workers from 
D)  Below-equilibrium;including all workers in

Question 2

The following table shows how apple output changes as additional apple pickers are hired.Calculate marginal physical product,total revenue,and marginal revenue product.The price of apples is $4 per basket.
Table 8.1-Apple Production  
-In Table 8.1,what is the marginal physical product of the 3rd apple picker?

Accepted Answer

A)  5 baskets per day. 
B)  15 baskets per day. 
C)  20 baskets per day. 
D)  60 baskets per day. 
A)  5 baskets per day. 
B)  15 baskets per day. 
C)  20 baskets per day. 
D)  60 baskets per day.

Question 3

The following table shows how apple output changes as additional apple pickers are hired.Calculate marginal physical product,total revenue,and marginal revenue product.The price of apples is $4 per basket.
Table 8.1-Apple Production  
-In Table 8.1,if the price of apples increases to $8 per basket and the equilibrium wage is $48 per day,how many apple pickers will the firm hire?

Accepted Answer

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

Question 4

The marginal revenue product of labor is:

Accepted Answer

A)  The additional output from hiring one more worker. 
B)  The additional revenue a firm receives from hiring one more worker. 
C)  Equal to the marginal physical product of labor times the wage rate. 
D)  Equal to the price of the product times the wage rate. 
A)  The additional output from hiring one more worker. 
B)  The additional revenue a firm receives from hiring one more worker. 
C)  Equal to the marginal physical product of labor times the wage rate. 
D)  Equal to the price of the product times the wage rate.

Question 5

Figure 8.3-Apple Production  
-In Figure 8.3,for the 1st through the 6th worker:

Accepted Answer

A)  MRP is greater than or equal to the equilibrium wage rate and these workers will be hired. 
B)  MRP is less than the equilibrium wage rate and these workers will not be hired. 
C)  MPP is less than the equilibrium wage rate and these workers will not be hired. 
D)  The equilibrium wage rate is too high and the firm does not accept the wage. 
A)  MRP is greater than or equal to the equilibrium wage rate and these workers will be hired. 
B)  MRP is less than the equilibrium wage rate and these workers will not be hired. 
C)  MPP is less than the equilibrium wage rate and these workers will not be hired. 
D)  The equilibrium wage rate is too high and the firm does not accept the wage.

Question 6

A firm's demand for labor is referred to as a derived demand because it is derived from the:

Accepted Answer

A)  Marginal physical product of labor. 
B)  Demand for the product that labor produces. 
C)  Wages labor receives from the firm. 
D)  Supply of labor. 
A)  Marginal physical product of labor. 
B)  Demand for the product that labor produces. 
C)  Wages labor receives from the firm. 
D)  Supply of labor.

Question 7

The supply curve for labor is upward sloping to the right because as wages _____,the quantity of _____ rises.

Accepted Answer

A)  Rise;goods purchased 
B)  Fall;work required 
C)  Rise;labor supplied 
D)  Fall;labor demanded 
A)  Rise;goods purchased 
B)  Fall;work required 
C)  Rise;labor supplied 
D)  Fall;labor demanded

Question 8

The market demand for labor depends on all of the following except:

Accepted Answer

A)  the number of employers. 
B)  the marginal revenue product of labor in each firm and industry. 
C)  the marginal physical product of workers. 
D)  Each worker's willingness to work at alternative wage rates. 
A)  the number of employers. 
B)  the marginal revenue product of labor in each firm and industry. 
C)  the marginal physical product of workers. 
D)  Each worker's willingness to work at alternative wage rates.

Question 9

Ceteris paribus,if additional immigrants come to the United States with marketable skills,and they decide to enter the labor market:

Accepted Answer

A)  There is movement up the labor supply curve. 
B)  The labor supply curve shifts to the right. 
C)  There is movement down the labor supply curve. 
D)  The labor supply curve shifts to the left. 
A)  There is movement up the labor supply curve. 
B)  The labor supply curve shifts to the right. 
C)  There is movement down the labor supply curve. 
D)  The labor supply curve shifts to the left.

Labor unions are able to maintain _ wages for union members by _ the market.

The marginal revenue product of labor is:

Figure 8.3-Apple Production -In Figure 8.3,for the 1^st through the 6^th worker:

A firm's demand for labor is referred to as a derived demand because it is derived from the:

The supply curve for labor is upward sloping to the right because as wages _,the quantity of _ rises.

The market demand for labor depends on all of the following except:

Ceteris paribus,if additional immigrants come to the United States with marketable skills,and they decide to enter the labor market:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 8: The Labor Market

Labor unions are able to maintain _____ wages for union members by _____ the market.

The marginal revenue product of labor is:

Figure 8.3-Apple Production -In Figure 8.3,for the 1st through the 6th worker:

A firm's demand for labor is referred to as a derived demand because it is derived from the:

The supply curve for labor is upward sloping to the right because as wages _____,the quantity of _____ rises.

The market demand for labor depends on all of the following except:

Ceteris paribus,if additional immigrants come to the United States with marketable skills,and they decide to enter the labor market:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Labor unions are able to maintain _ wages for union members by _ the market.

Figure 8.3-Apple Production -In Figure 8.3,for the 1^st through the 6^th worker:

The supply curve for labor is upward sloping to the right because as wages _,the quantity of _ rises.