Exam 50: The Labor Market

The following figures show the demand and supply of labor in two different types of labor market. Figure 29.5 In the figures, D: Demand curve for labor S: Supply curve of labor MRP: Marginal revenue product MFC: Marginal factor cost In Figure 29.5, if a minimum wage of $10 is set by the government, then in market B:

Which of the following is not a reason for compensating wage differentials?

The Civil Rights Act of 1964 in the United States led to _____.

The figure given below shows the income-leisure trade off of an individual. Figure 29.6 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. Which of the following factors is likely to be responsible for the inward rotation of the income constraint from AB to AC in Figure 29.6?

From an economist's viewpoint, discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups.

The intention of a minimum wage is to:

A firm employing secretaries and steelworkers should ideally pay equal wages to both the groups of workers irrespective of the type of job each group does.

Proponents of comparable worth justifies it on the ground that:

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

Which of the following is a true statement about leisure?

The labor-market-supply curve illustrates that, as the wage rate increases, the number of number of hours that each person is willing and able to work rises.

Why are a large number of IT jobs being outsourced to China and India?

A large number of U.S.firms send jobs to low-wage nations as it enables them to:

Which of the following statements contradicts the upward-sloping market-supply curve?`

Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?

Minimum wage legislation by the government would:

Statistical discrimination is legal under the disparate impact standard but illegal under the treatment standard.

Which of the following statements best defines the economics of the so-called superstar effect in the labor market?

A college student's choice of a major and an occupation reflects:

If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers, we can expect: