Question 1

What is the equilibrium compensating wage differential for the farmer?

Accepted Answer

A)  $5K 
B)  $10K 
C)  $20K 
D)  $25K 
E)  $40K 
A)  $5K 
B)  $10K 
C)  $20K 
D)  $25K 
E)  $40K D

Question 2

After the $4 subsidy is imposed,how many individuals work in the steel industry?

Accepted Answer

A)  19 
B)  20 
C)  23 
D)  25 
E)  27 
A)  19 
B)  20 
C)  23 
D)  25 
E)  27 C

Question 3

How many workers are employed in the steel industry?

Accepted Answer

A)  19 
B)  20 
C)  23 
D)  25 
E)  27 
A)  19 
B)  20 
C)  23 
D)  25 
E)  27 B

Question 4

Suppose the wage for secretaries increases to   .What is the equilibrium compensating wage differential for farmers?

Accepted Answer

A)  $10K 
B)  $25K 
C)  $50K 
D)  $55K 
E)  $60K 
A)  $10K 
B)  $25K 
C)  $50K 
D)  $55K 
E)  $60K

Question 5

Suppose instead of the subsidy,the government imposes a tax on workers of $4 per hour.What is the new equilibrium wage in the steel industry?

Accepted Answer

A)  $8 
B)  $9 
C)  $10 
D)  $13 
E)  $15 
A)  $8 
B)  $9 
C)  $10 
D)  $13 
E)  $15

Question 6

Suppose Daniel can work in an unsafe factory for $15,but works in a restaurant as a busboy for $11.What is the reservation value of safety?

Accepted Answer

A)  $4 
B)  $9 
C)  $11 
D)  $13 
E)  $26 
A)  $4 
B)  $9 
C)  $11 
D)  $13 
E)  $26

Question 7

Why are there differing results in problems 22 and 23?

Accepted Answer

A)  The average worker changed. 
B)  The marginal worker changed. 
C)  The median worker changed. 
D)  Individuals are not behaving rationally. 
E)  Employers are not profit-maximizing. 
A)  The average worker changed. 
B)  The marginal worker changed. 
C)  The median worker changed. 
D)  Individuals are not behaving rationally. 
E)  Employers are not profit-maximizing.

Question 8

If workers are perfectly mobile,what will be the wage of the typical chef in a diner?

Accepted Answer

A)  $5 
B)  $6 
C)  $7 
D)  $8 
E)  $9 
A)  $5 
B)  $6 
C)  $7 
D)  $8 
E)  $9

Question 9

In a competitive equilibrium,workers are and firms are .

Accepted Answer

A)  price setters,price setters 
B)  price setters,price takers 
C)  price takers,price takers 
D)  price takers,price setters 
E)  price neutral,price setters 
A)  price setters,price setters 
B)  price setters,price takers 
C)  price takers,price takers 
D)  price takers,price setters 
E)  price neutral,price setters

Question 10

The starting salary for a garbage hauler is about $60,000 more than a teacher.Which of the following terms explains this difference?

Accepted Answer

A)  Pareto optimal 
B)  payroll tax 
C)  reservation value 
D)  compensating wage differential 
E)  competitive Equilibrium 
A)  Pareto optimal 
B)  payroll tax 
C)  reservation value 
D)  compensating wage differential 
E)  competitive Equilibrium

Question 11

Instead of a wage increase,members of a police union agreed to keep the same pay in exchange for a 20-year retirement program.What is this an exmaple of?

Accepted Answer

A)  fringe benefits 
B)  Pareto optimality 
C)  efficiency 
D)  compensating wage differential 
E)  A and D 
A)  fringe benefits 
B)  Pareto optimality 
C)  efficiency 
D)  compensating wage differential 
E)  A and D

Question 12

Suppose there is a payroll tax placed on firms.If labor supply is perfectly elastic,then

Accepted Answer

A)  firms and workers will split the payroll tax 50-50. 
B)  workers will bear 75% of the tax burden. 
C)  workers will bear 100% of the tax burden. 
D)  firms will bear 100% of the tax burden. 
E)  firms will bear 75% of the tax burden. 
A)  firms and workers will split the payroll tax 50-50. 
B)  workers will bear 75% of the tax burden. 
C)  workers will bear 100% of the tax burden. 
D)  firms will bear 100% of the tax burden. 
E)  firms will bear 75% of the tax burden.

Question 13

Which of the following does not occur in a competitive equilibrium?

Accepted Answer

A)  The demand for labor will be perfectly elastic. 
B)  The supply of labor will be perfectly elastic. 
C)  If there's an increase in the supply of labor,wages will adjust appropriately. 
D)  When the supply of labor decreases,the hours worked by individuals will adjust. 
E)  When the demand for labor increases,the firms will not adjust the number of workers employed. 
A)  The demand for labor will be perfectly elastic. 
B)  The supply of labor will be perfectly elastic. 
C)  If there's an increase in the supply of labor,wages will adjust appropriately. 
D)  When the supply of labor decreases,the hours worked by individuals will adjust. 
E)  When the demand for labor increases,the firms will not adjust the number of workers employed.

Question 14

If comparable workers need to be paid $5 more an hour to bus tables than to be a waiter,then:

Accepted Answer

A)  the value of being a waiter is worth at least $5 for all workers. 
B)  the value of being a waiter is worth more than $5 for all workers. 
C)  the value of being a waiter is worth exactly $5 for all workers. 
D)  the value of being a waiter is worth at least $5 for some workers. 
E)  the value of being a busboy is worth $5 for all workers. 
A)  the value of being a waiter is worth at least $5 for all workers. 
B)  the value of being a waiter is worth more than $5 for all workers. 
C)  the value of being a waiter is worth exactly $5 for all workers. 
D)  the value of being a waiter is worth at least $5 for some workers. 
E)  the value of being a busboy is worth $5 for all workers.

Question 15

Which of the following is an example of changes along the intensive margin?

Accepted Answer

A)  A firm hires more workers because demand for the good has increased. 
B)  A new firm closes because a recession causes sales to drop too low. 
C)  A worker leaves her job to stay at home with her children. 
D)  After the iPhone was developed,several competitors entered to earn a profit. 
E)  Consumers demand more high-definition TVs,so the price of other types of
TVs decreases. 
A)  A firm hires more workers because demand for the good has increased. 
B)  A new firm closes because a recession causes sales to drop too low. 
C)  A worker leaves her job to stay at home with her children. 
D)  After the iPhone was developed,several competitors entered to earn a profit. 
E)  Consumers demand more high-definition TVs,so the price of other types of
TVs decreases.

Question 16

How many chefs will work in the diner?

Accepted Answer

A)  6 workers 
B)  8 workers 
C)  12 workers 
D)  14 workers 
E)  20 workers 
A)  6 workers 
B)  8 workers 
C)  12 workers 
D)  14 workers 
E)  20 workers

Question 17

If the government decreases the payroll tax,then the equilibrium wage will and the employment level will .

Accepted Answer

A)  decrease,decrease 
B)  decrease,increase 
C)  increase,increase 
D)  increase,decrease 
E)  remain the same,decrease 
A)  decrease,decrease 
B)  decrease,increase 
C)  increase,increase 
D)  increase,decrease 
E)  remain the same,decrease

Question 18

Suppose the government decreases the federal income tax.What happens to the labor market equilibrium?

Accepted Answer

A)  The labor demand schedule shifts downward. 
B)  The labor demand schedule shifts upward. 
C)  The labor supply schedule shifts downward. 
D)  The labor supply schedule shifts upward. 
E)  The labor demand and labor supply schedule both shift downward. 
A)  The labor demand schedule shifts downward. 
B)  The labor demand schedule shifts upward. 
C)  The labor supply schedule shifts downward. 
D)  The labor supply schedule shifts upward. 
E)  The labor demand and labor supply schedule both shift downward.

Question 19

Suppose the government imposes an employment subsidy of $4 per worker per hour.What is the new equilibrium wage?

Accepted Answer

A)  $8 
B)  $9 
C)  $10 
D)  $13 
E)  $15 
A)  $8 
B)  $9 
C)  $10 
D)  $13 
E)  $15

Question 20

What is the equilibrium wage?

Accepted Answer

A)  $5 
B)  $7 
C)  $10 
D)  $13 
E)  $15 
A)  $5 
B)  $7 
C)  $10 
D)  $13 
E)  $15

What is the equilibrium compensating wage differential for the farmer?

After the $4 subsidy is imposed,how many individuals work in the steel industry?

How many workers are employed in the steel industry?

Suppose the wage for secretaries increases to .What is the equilibrium compensating wage differential for farmers?

Suppose instead of the subsidy,the government imposes a tax on workers of $4 per hour.What is the new equilibrium wage in the steel industry?

Suppose Daniel can work in an unsafe factory for $15,but works in a restaurant as a busboy for $11.What is the reservation value of safety?

Why are there differing results in problems 22 and 23?

If workers are perfectly mobile,what will be the wage of the typical chef in a diner?

In a competitive equilibrium,workers are and firms are .

The starting salary for a garbage hauler is about $60,000 more than a teacher.Which of the following terms explains this difference?

Instead of a wage increase,members of a police union agreed to keep the same pay in exchange for a 20-year retirement program.What is this an exmaple of?

Suppose there is a payroll tax placed on firms.If labor supply is perfectly elastic,then

Which of the following does not occur in a competitive equilibrium?

If comparable workers need to be paid $5 more an hour to bus tables than to be a waiter,then:

Which of the following is an example of changes along the intensive margin?

How many chefs will work in the diner?

If the government decreases the payroll tax,then the equilibrium wage will and the employment level will .

Suppose the government decreases the federal income tax.What happens to the labor market equilibrium?

Suppose the government imposes an employment subsidy of $4 per worker per hour.What is the new equilibrium wage?

What is the equilibrium wage?

Introduction

The Uslabor Market

The Short Run Demand for Labor

The Supply of Labor

Human Capital

On-The-Job Training

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters

Exam 7: Competitive Equilibrium

What is the equilibrium compensating wage differential for the farmer?

After the $4 subsidy is imposed,how many individuals work in the steel industry?

How many workers are employed in the steel industry?

Suppose the wage for secretaries increases to .What is the equilibrium compensating wage differential for farmers?

Suppose instead of the subsidy,the government imposes a tax on workers of $4 per hour.What is the new equilibrium wage in the steel industry?

Suppose Daniel can work in an unsafe factory for $15,but works in a restaurant as a busboy for $11.What is the reservation value of safety?

Why are there differing results in problems 22 and 23?

If workers are perfectly mobile,what will be the wage of the typical chef in a diner?

In a competitive equilibrium,workers are and firms are .

The starting salary for a garbage hauler is about $60,000 more than a teacher.Which of the following terms explains this difference?

Instead of a wage increase,members of a police union agreed to keep the same pay in exchange for a 20-year retirement program.What is this an exmaple of?

Suppose there is a payroll tax placed on firms.If labor supply is perfectly elastic,then

Which of the following does not occur in a competitive equilibrium?

If comparable workers need to be paid $5 more an hour to bus tables than to be a waiter,then:

Which of the following is an example of changes along the intensive margin?

How many chefs will work in the diner?

If the government decreases the payroll tax,then the equilibrium wage will and the employment level will .

Suppose the government decreases the federal income tax.What happens to the labor market equilibrium?

Suppose the government imposes an employment subsidy of $4 per worker per hour.What is the new equilibrium wage?

What is the equilibrium wage?

Introduction

The Uslabor Market

The Short Run Demand for Labor

The Supply of Labor

Human Capital

On-The-Job Training

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters