Exam 26: The Labor Market

If an employer is a monopsonist, the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 In the figures, D: Demand curve for labor S: Supply curve of labor MRP: Marginal revenue product MFC: Marginal factor cost In Figure 15.5, the equilibrium wage rate and the level of employment in Market A are _____ and _____ respectively.

Which of the following can result in occupational crowding?

Which of the following is true of illegal immigrants?

The concept of comparable worth:

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4 In the figure: MC: Marginal cost curve ATC: Average total cost curve D: Demand curve in the U.S. MR: Marginal revenue curve in the U.S. In Figure 15.4, the price and quantity of the good if produced by India would be _____ and _____ respectively.

If the quantity demanded for labor is more than the quantity supplied, there will be unemployment.

Minimum wage legislation by the government would:

The figure given below shows the income-leisure trade off of an individual. Figure 15.6 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. In Figure 15.6, if the income constraint of the individual is given by the line AC, he maximizes his utility by choosing _____ hours of leisure and _____ units of income.

The burden of a tax is mainly borne by the buyer if:

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

An increase in the income tax rates:

Which of the following are benefits created by the immigrants?

Why has the inequality of income become greater?

The wage gap between males and females is decreasing, and will be finally eradicated because the average male in the labor force has equal marketable human capital as the average female.

The figure given below shows the demand curves (D₁ and D₂)and supply curves (S₁ and S₂)of labor in the labor market. Figure: 15.2 According to Figure 15.2, assume that the market is in an initial equilibrium in which the labor supply is S₁ and the labor demand is D₁.Then labor supply shifts from S₁ to S₂ but the wage remains at its previous equilibrium level.Which of the following is true?

An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

The figure below shows the supply curve for labor. Figure 15.1 Refer to Figure 15.1.When wage rate increases from W₃ to W₅:

The labor market is in equilibrium when:

Which of the following is an impact of the restriction on immigration on the domestic firms?