Exam 18: Labor Markets

Assume Xs earn $3 less per hour than Ys and a firm employs 300 workers. There are 8 working hours in the day, 5 working days a week, and 50 working weeks a year. If the firm discriminates and hires only Ys, how much profit will it lose in a year? (Assume Xs have the same work skills as Ys.)

If job A and job B are identical in all aspects, except that job B pays higher wages, what will happen over time?

The labor supply curve for an individual is always upward sloping.

A high demand for labor in one industry will:

The supply of nurses in country A is the same as the supply in country B, but the nurses in country A earn 90% more than the nurses in country B. What can explain this difference?

The American Medical Association:

The market supply of labor is upward sloping because:

Many people might expect a wedding planner to earn a higher annual salary than a truck driver, yet statistics show that the average salary for a wedding planner is approximately $30,000 per year, and the annual salary for a truck driver is around $60,000 per year. Explain what can account for such a difference.

Suppose a firm pays white workers $40 an hour but pays black workers who are as productive as the white workers $25 an hour.

The three-cylinder mill revolutionized sugar production around the year 1500, allowing sugar cane to be crushed rapidly using animal power (before then, the cane had to be ground by hand with a mortar-and-pestle). It took only three slaves to operate the machine, a small fraction of what it took to do the same job by hand. What happened to the price of slaves for sugar production?

Which of the following best describes the influence of labor unions on workers?

Why is it not completely accurate to say that women earn less than men?

The fact that women earn about $.80 for every $1 men earn:

Employer discrimination is expensive to employees who are discriminated against and it leaves the labor market open to being more competitive.

Wage premiums for college graduates have ______ since 1980.

The main factor improving job safety in the United States has been government regulation.

Which of the following statements is TRUE? I. Customer-based discrimination weakens as more and more people trade and exchange with one another in market places. II. Economic growth causes production costs to fall, reducing the risks of business experimenting with integrated workplaces. III. Employer-based discrimination is negatively correlated with customer-based discrimination.

A firm will continue to hire workers as long as:

If the market wage for electrical engineers in the United States is $50 per hour, then we know that the marginal product of electrical engineers is:

Which of the following best describes the major factor in making jobs safer?