Question 1

What are the three most important variables that cause the market supply curve of labour to shift?

Accepted Answer

The most important factors that cause th

Question 2

The income effect of a wage increase will cause a worker to devote

Accepted Answer

A)  more time to labour and more time to leisure. 
B)  more time to labour and less time to leisure. 
C)  less time to labour and more time to leisure. 
D)  less time to labour and less time to leisure. 
A)  more time to labour and more time to leisure. 
B)  more time to labour and less time to leisure. 
C)  less time to labour and more time to leisure. 
D)  less time to labour and less time to leisure.

Question 3

Customer discrimination occurs when

Accepted Answer

A)  a firm pays workers different wages based on irrelevant factors. 
B)  customers refuse to buy products produced by a racially diverse workforce. 
C)  customers refuse to buy products they believe to be of poor quality. 
D)  workers refuse to serve customers of a different race. 
A)  a firm pays workers different wages based on irrelevant factors. 
B)  customers refuse to buy products produced by a racially diverse workforce. 
C)  customers refuse to buy products they believe to be of poor quality. 
D)  workers refuse to serve customers of a different race.

Question 4

A reason why a perfectly competitive firm's demand for labour curve slopes downward is that

Accepted Answer

A)  each additional unit of labour hired is less efficient than previously hired units. 
B)  in the short run, as more labour is hired, labour's marginal product falls because of the law of diminishing returns. 
C)  the extra cost of hiring additional units of labour increases as a firm hires more units of labour. 
D)  the firm's demand curve for the product that uses labour is downward sloping. 
A)  each additional unit of labour hired is less efficient than previously hired units. 
B)  in the short run, as more labour is hired, labour's marginal product falls because of the law of diminishing returns. 
C)  the extra cost of hiring additional units of labour increases as a firm hires more units of labour. 
D)  the firm's demand curve for the product that uses labour is downward sloping.

Question 5

Figure 10-4  
-Refer to Figure 10-4.Which of the following is true if the wage rate increases from W1 to W2?

Accepted Answer

A)  The income effect is larger than the substitution effect. 
B)  The substitution effect is larger than the income effect. 
C)  The income effect and the substitution effect are equal. 
D)  The supply curve is unit-elastic. 
A)  The income effect is larger than the substitution effect. 
B)  The substitution effect is larger than the income effect. 
C)  The income effect and the substitution effect are equal. 
D)  The supply curve is unit-elastic.

Question 6

Figure 10-1   Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 10-1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?

Accepted Answer

A)  Nothing, because labour's productivity has not changed. 
B)  There will be a movement along the curve. 
C)  The curve shifts to the right. 
D)  We cannot answer the question without knowing if Dale would want to hire more workers. 
A)  Nothing, because labour's productivity has not changed. 
B)  There will be a movement along the curve. 
C)  The curve shifts to the right. 
D)  We cannot answer the question without knowing if Dale would want to hire more workers.

Question 7

Which of the following would cause an increase in the equilibrium wage?

Accepted Answer

A)  The supply of labour increases more than the demand for labour. 
B)  The supply of jobs increases more than the demand for jobs. 
C)  The demand for labour increases faster than the supply of labour. 
D)  The supply of labour increases and the demand for labour decreases. 
A)  The supply of labour increases more than the demand for labour. 
B)  The supply of jobs increases more than the demand for jobs. 
C)  The demand for labour increases faster than the supply of labour. 
D)  The supply of labour increases and the demand for labour decreases.

Question 8

The primary purpose of labour unions is to

Accepted Answer

A)  ensure that workers receive adequate safety training. 
B)  ensure that all members earn identical incomes. 
C)  negotiate with employers about wages and working conditions. 
D)  endorse political candidates and donate money to them. 
A)  ensure that workers receive adequate safety training. 
B)  ensure that all members earn identical incomes. 
C)  negotiate with employers about wages and working conditions. 
D)  endorse political candidates and donate money to them.

Question 9

The labour supply curve

Accepted Answer

A)  shows the relationship between the wage rate and the quantity of labour supplied. 
B)  shows the quantity of jobs supplied at various wage rates. 
C)  is unit-elastic. 
D)  is U-shaped. 
A)  shows the relationship between the wage rate and the quantity of labour supplied. 
B)  shows the quantity of jobs supplied at various wage rates. 
C)  is unit-elastic. 
D)  is U-shaped.

Question 10

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by five units per hour,then to maximise profits the firm should

Accepted Answer

A)  not change the number of workers it currently hires. 
B)  lay off some of its workers. 
C)  hire the additional worker. 
D)  There is not enough information to answer the question. 
A)  not change the number of workers it currently hires. 
B)  lay off some of its workers. 
C)  hire the additional worker. 
D)  There is not enough information to answer the question.

Question 11

An increase in the wage rate causes

Accepted Answer

A)  a rightward shift of the firm's labour demand curve. 
B)  a leftward shift of the firm's labour demand curve. 
C)  a decrease in the quantity of labour demanded. 
D)  an increase in labour's marginal productivity. 
A)  a rightward shift of the firm's labour demand curve. 
B)  a leftward shift of the firm's labour demand curve. 
C)  a decrease in the quantity of labour demanded. 
D)  an increase in labour's marginal productivity.

Question 12

Which of the following factors will not cause the labour demand curve to shift?

Accepted Answer

A)  Increases in human capital 
B)  Changes in technology 
C)  Change in the price of the product produced with labour 
D)  The wage rate 
A)  Increases in human capital 
B)  Changes in technology 
C)  Change in the price of the product produced with labour 
D)  The wage rate

Question 13

What is personnel economics?

Accepted Answer

Personnel economics is the app

Question 14

The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s.What factor explains this increase in relative salaries over time?

Accepted Answer

A)  Technological advances in the entertainment industry increase the revenue that successful movies can earn. This has increased the movie studios' willingness to pay high salaries to movie stars. 
B)  Agents of movies stars are effective in obtaining large salaries for their clients today. Few movie stars had agents to negotiate for them in the 1930s and 1940s. 
C)  The studio system that dominated the industry in the 1930s and 1940s no longer exists. The studio system allowed movie studios to sign actors to long-term contracts that kept salaries down. 
D)  There was no actors' union in the 1930s and 1940s. The rise of strong actors' unions has caused salaries of movies stars to be greater today than in previous years. 
A)  Technological advances in the entertainment industry increase the revenue that successful movies can earn. This has increased the movie studios' willingness to pay high salaries to movie stars. 
B)  Agents of movies stars are effective in obtaining large salaries for their clients today. Few movie stars had agents to negotiate for them in the 1930s and 1940s. 
C)  The studio system that dominated the industry in the 1930s and 1940s no longer exists. The studio system allowed movie studios to sign actors to long-term contracts that kept salaries down. 
D)  There was no actors' union in the 1930s and 1940s. The rise of strong actors' unions has caused salaries of movies stars to be greater today than in previous years.

Question 15

Labour demand is considered a derived demand because producers do not demand labour for itself but only because labour is used to produce output that consumers desire.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following describes a difference between the marginal product of labour and the marginal revenue product of labour?

Accepted Answer

A)  The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product of labour declines as each additional worker is hired because of diseconomies of scale. 
B)  The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product increases as each additional worker is hired because of increases in the productivity of labour. 
C)  The marginal product of labour is inelastic. The marginal revenue product of labour is elastic. 
D)  The marginal product of labour measures the change in output as additional workers are hired. The marginal revenue product measures the change in revenue as additional workers are hired. 
A)  The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product of labour declines as each additional worker is hired because of diseconomies of scale. 
B)  The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product increases as each additional worker is hired because of increases in the productivity of labour. 
C)  The marginal product of labour is inelastic. The marginal revenue product of labour is elastic. 
D)  The marginal product of labour measures the change in output as additional workers are hired. The marginal revenue product measures the change in revenue as additional workers are hired.

Question 17

If you were to ask your employer for a raise,which of the following would be your most effective argument?

Accepted Answer

A)  'I have a job offer at another firm that will pay me more than my current wage.' 
B)  'I am willing to work more hours each week.' 
C)  'Increases in my productivity have resulted in greater revenue and profits for your business.' 
D)  'My marginal product is greater than my current wage.' 
A)  'I have a job offer at another firm that will pay me more than my current wage.' 
B)  'I am willing to work more hours each week.' 
C)  'Increases in my productivity have resulted in greater revenue and profits for your business.' 
D)  'My marginal product is greater than my current wage.'

Question 18

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 19

An increase in a perfectly competitive firm's demand for labour could be caused by

Accepted Answer

A)  a decrease in the market wage rate. 
B)  an increase in the market demand for the firm's product. 
C)  a decrease in the marginal product of workers. 
D)  an increase in the quantity of labour supplied. 
A)  a decrease in the market wage rate. 
B)  an increase in the market demand for the firm's product. 
C)  a decrease in the marginal product of workers. 
D)  an increase in the quantity of labour supplied.

Question 20

The demand for capital is similar to the demand for labour in that

Accepted Answer

A)  the marginal product of labour is derived from the marginal product of capital. 
B)  the marginal revenue product curve for labour is the same as the marginal revenue product curve for capital. 
C)  both are derived demands. 
D)  both are inelastic at high prices and elastic at low prices. 
A)  the marginal product of labour is derived from the marginal product of capital. 
B)  the marginal revenue product curve for labour is the same as the marginal revenue product curve for capital. 
C)  both are derived demands. 
D)  both are inelastic at high prices and elastic at low prices.

What are the three most important variables that cause the market supply curve of labour to shift?

The income effect of a wage increase will cause a worker to devote

Customer discrimination occurs when

A reason why a perfectly competitive firm's demand for labour curve slopes downward is that

Figure 10-4 -Refer to Figure 10-4.Which of the following is true if the wage rate increases from W₁ to W₂?

Figure 10-1 Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 10-1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?

Which of the following would cause an increase in the equilibrium wage?

The primary purpose of labour unions is to

The labour supply curve

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by five units per hour,then to maximise profits the firm should

An increase in the wage rate causes

Which of the following factors will not cause the labour demand curve to shift?

What is personnel economics?

The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s.What factor explains this increase in relative salaries over time?

Labour demand is considered a derived demand because producers do not demand labour for itself but only because labour is used to produce output that consumers desire.

Which of the following describes a difference between the marginal product of labour and the marginal revenue product of labour?

If you were to ask your employer for a raise,which of the following would be your most effective argument?

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

An increase in a perfectly competitive firm's demand for labour could be caused by

The demand for capital is similar to the demand for labour in that

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

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Exam 10: Monopoly and Antitrust

What are the three most important variables that cause the market supply curve of labour to shift?

The income effect of a wage increase will cause a worker to devote

Customer discrimination occurs when

A reason why a perfectly competitive firm's demand for labour curve slopes downward is that

Figure 10-4 -Refer to Figure 10-4.Which of the following is true if the wage rate increases from W1 to W2?

Figure 10-1 Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 10-1.Suppose the market price of doilies rises to $3.What happens to the curve given in the diagram?

Which of the following would cause an increase in the equilibrium wage?

The primary purpose of labour unions is to

The labour supply curve

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by five units per hour,then to maximise profits the firm should

An increase in the wage rate causes

Which of the following factors will not cause the labour demand curve to shift?

What is personnel economics?

The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s.What factor explains this increase in relative salaries over time?

Labour demand is considered a derived demand because producers do not demand labour for itself but only because labour is used to produce output that consumers desire.

Which of the following describes a difference between the marginal product of labour and the marginal revenue product of labour?

If you were to ask your employer for a raise,which of the following would be your most effective argument?

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

An increase in a perfectly competitive firm's demand for labour could be caused by

The demand for capital is similar to the demand for labour in that

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Figure 10-4 -Refer to Figure 10-4.Which of the following is true if the wage rate increases from W₁ to W₂?