Question 1

The competitive equilibrium is

Accepted Answer

A)  fair. 
B)  efficient. 
C)  equitable. 
D)  unaffected by shifts in labor demand. 
E)  unaffected by shifts in labor supply. 
A)  fair. 
B)  efficient. 
C)  equitable. 
D)  unaffected by shifts in labor demand. 
E)  unaffected by shifts in labor supply.

Question 2

Which of the following is a true statement about competitive labor markets?

Accepted Answer

A)  Fringe benefits will never arise in a competitive labor market. 
B)  Workers of the same skill level will earn different prices. 
C)  Payroll taxes are levied on employees. 
D)  Adjustments along the intensive margin arise when firms enter the market. 
E)  In a competitive labor market,all participants are price takers. 
A)  Fringe benefits will never arise in a competitive labor market. 
B)  Workers of the same skill level will earn different prices. 
C)  Payroll taxes are levied on employees. 
D)  Adjustments along the intensive margin arise when firms enter the market. 
E)  In a competitive labor market,all participants are price takers.

Question 3

Suppose the state government increases the payroll tax by $1.What will happen 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 4

If a firm makes adjustments to create a safer working environment,then

Accepted Answer

A)  workers will demand higher wages. 
B)  workers will accept lower wages. 
C)  the firm will attract more skilled workers. 
D)  the firm is no longer maximizing profits. 
E)  answers B and D 
A)  workers will demand higher wages. 
B)  workers will accept lower wages. 
C)  the firm will attract more skilled workers. 
D)  the firm is no longer maximizing profits. 
E)  answers B and D

Question 5

Suppose there is an increase in the supply of labor.This will cause the equilibrium wage to ,hours worked to ,and quantity of labor demanded to .

Accepted Answer

A)  decrease,decrease,increase 
B)  decrease,increase,increase 
C)  decrease,increase,decrease 
D)  increase,decrease,increase 
E)  increase,increase,decrease 
A)  decrease,decrease,increase 
B)  decrease,increase,increase 
C)  decrease,increase,decrease 
D)  increase,decrease,increase 
E)  increase,increase,decrease

Question 6

Which of the following statements are not true?

Accepted Answer

A)  Fringe benefits include health insurance and pension plans. 
B)  Workers all value fringe benefits the same. 
C)  Wage benefits are predicted to lie along a line with a slope of -1. 
D)  Employers are indifferent between any equally costly wage benefit combination. 
E)  Fringe benefits arise from a voluntary agreement between workers and employers. 
A)  Fringe benefits include health insurance and pension plans. 
B)  Workers all value fringe benefits the same. 
C)  Wage benefits are predicted to lie along a line with a slope of -1. 
D)  Employers are indifferent between any equally costly wage benefit combination. 
E)  Fringe benefits arise from a voluntary agreement between workers and employers.

Question 7

Which of the following is an example of a fringe benefit?

Accepted Answer

A)  overtime 
B)  Christmas bonus 
C)  raises 
D)  federal holidays off 
E)  paid dental benefits 
A)  overtime 
B)  Christmas bonus 
C)  raises 
D)  federal holidays off 
E)  paid dental benefits

Question 8

The compensating wage differential is:

Accepted Answer

A)  the pay a worker receives for working overtime. 
B)  health insurance and other non pecuniary benefits all workers receive. 
C)  the extra wage given to compensate workers for bad working conditions. 
D)  the extra wage that will cause all workers to accept bad working conditions. 
E)  the higher wage caused by government interventions such as the minimum wage. 
A)  the pay a worker receives for working overtime. 
B)  health insurance and other non pecuniary benefits all workers receive. 
C)  the extra wage given to compensate workers for bad working conditions. 
D)  the extra wage that will cause all workers to accept bad working conditions. 
E)  the higher wage caused by government interventions such as the minimum wage.

Question 9

How many chefs will work in the fancy restaurant?

Accepted Answer

A)  4 workers 
B)  8 workers 
C)  12 workers 
D)  14 workers 
E)  16 workers 
A)  4 workers 
B)  8 workers 
C)  12 workers 
D)  14 workers 
E)  16 workers

Question 10

If workers are perfectly mobile,what will be the wage of the chef at the fancy restaurant?

Accepted Answer

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

Question 11

When there are compensating wage differentials,

Accepted Answer

A)  individuals no longer maximize utility. 
B)  firms no longer maximize profits. 
C)  all workers receive the same non pecuniary benefits. 
D)  workers are homogeneous. 
E)  there are a large number of firms. 
A)  individuals no longer maximize utility. 
B)  firms no longer maximize profits. 
C)  all workers receive the same non pecuniary benefits. 
D)  workers are homogeneous. 
E)  there are a large number of firms.

Question 12

Suppose a firm currently offers workers $60K a year without health care benefits.The workers want health insurance and are willing to take a pay cut to get the benefit.Which of the following employment packages does the employer value equally to the current employment package?

Accepted Answer

A)  $70K salary and $30K in health benefits 
B)  $60K salary and $30K in health benefits 
C)  $40K salary and $30K in health benefits 
D)  $30K salary and $30K in health benefits 
E)  $10K salary and $30K in health benefits 
A)  $70K salary and $30K in health benefits 
B)  $60K salary and $30K in health benefits 
C)  $40K salary and $30K in health benefits 
D)  $30K salary and $30K in health benefits 
E)  $10K salary and $30K in health benefits

Question 13

After the $4 tax 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

Question 14

Who governs the compensating differential?

Accepted Answer

A)  the employer 
B)  the average worker 
C)  the marginal worker 
D)  the median worker 
E)  the government 
A)  the employer 
B)  the average worker 
C)  the marginal worker 
D)  the median worker 
E)  the government

The competitive equilibrium is

Which of the following is a true statement about competitive labor markets?

Suppose the state government increases the payroll tax by $1.What will happen to the labor market equilibrium?

If a firm makes adjustments to create a safer working environment,then

Suppose there is an increase in the supply of labor.This will cause the equilibrium wage to ,hours worked to ,and quantity of labor demanded to .

Which of the following statements are not true?

Which of the following is an example of a fringe benefit?

The compensating wage differential is:

How many chefs will work in the fancy restaurant?

If workers are perfectly mobile,what will be the wage of the chef at the fancy restaurant?

When there are compensating wage differentials,

Suppose a firm currently offers workers $60K a year without health care benefits.The workers want health insurance and are willing to take a pay cut to get the benefit.Which of the following employment packages does the employer value equally to the current employment package?

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

Who governs the compensating differential?

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

The competitive equilibrium is

Which of the following is a true statement about competitive labor markets?

Suppose the state government increases the payroll tax by $1.What will happen to the labor market equilibrium?

If a firm makes adjustments to create a safer working environment,then

Suppose there is an increase in the supply of labor.This will cause the equilibrium wage to ,hours worked to ,and quantity of labor demanded to .

Which of the following statements are not true?

Which of the following is an example of a fringe benefit?

The compensating wage differential is:

How many chefs will work in the fancy restaurant?

If workers are perfectly mobile,what will be the wage of the chef at the fancy restaurant?

When there are compensating wage differentials,

Suppose a firm currently offers workers $60K a year without health care benefits.The workers want health insurance and are willing to take a pay cut to get the benefit.Which of the following employment packages does the employer value equally to the current employment package?

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

Who governs the compensating differential?

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