Question 1

Which of the following will shift the labor demand curve to the right?

Accepted Answer

A)  An increase in the price of a competing, substitute input
B)  A reduction in the demand for the output produced by labor
C)  A reduction in the wage rate
D)  An increase in the use of factory automationE) A) and D)
F) A) and C)

Question 2

Business lobbyists tend to argue against a living wage law by arguing that it is a price:

Accepted Answer

A)  ceiling that will cause a shortage of labor.
B)  ceiling that will cause a surplus of labor.
C)  floor that will cause a shortage of labor.
D)  floor that will cause a surplus of labor.E) None of the above
F) B) and D)

Question 3

A firm's demand for labor is derived from the:

Accepted Answer

A)  opportunity costs associated with labor and leisure.
B)  desires and needs of the entrepreneur.
C)  cost of labor inputs.
D)  demand for its output.E) None of the above
F) C) and D)

Question 4

Refer to the graphs shown. 1 to S2, the market wage rate will: A) increase from W0 to W1. B) increase from W1 to W2. C) decrease from W1 to W0. D) decrease from W2 to W1." class="answers-bank-image d-inline" rel="preload" > If labor supply shifts from S1 to S2, the market wage rate will:

Accepted Answer

A)  increase from W0 to W1.
B)  increase from W1 to W2.
C)  decrease from W1 to W0.
D)  decrease from W2 to W1.E) C) and D)
F) A) and D)

Question 5

The demand for labor is a derived demand because:

Accepted Answer

A)  many workers are self-employed.
B)  the income workers earn adds to the demand for output.
C)  the demand for output comes from the demand for labor.
D)  the demand for labor comes from the demand for output.E) All of the above
F) C) and D)

Question 6

What is a monopsony? Why in this case are the marginal factor cost and the supply not the same?

Accepted Answer

A monopsony is a market in which a singl...

Question 7

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the wage rate of workers who remain in Haiti would be expected to:

Accepted Answer

A)  rise because more workers are working with the same amount of capital.
B)  rise because fewer workers are working with the same amount of capital.
C)  fall because more workers are working with the same amount of capital.
D)  fall because fewer workers are working with the same amount of capital.E) A) and D)
F) All of the above

Question 8

The elasticity of the labor supply curve depends on all of the following factors except:

Accepted Answer

A)  individuals' opportunity cost of working.
B)  the number of workers who enter or leave the labor market as the wage rate changes.
C)  the elasticity of demand for a firm's output.
D)  the elasticity of individuals' labor supply curves.E) A) and D)
F) A) and C)

Question 9

What are efficiency wages? Why do firms pay them?

Accepted Answer

Efficiency wages are wages pai...

Question 10

A monopsonist will pay a wage that:

Accepted Answer

A)  is greater than that in a perfectly competitive labor market.
B)  is the same as that in a perfectly competitive labor market.
C)  is less than that in a perfectly competitive labor market.
D)  may be greater than, less than, or equal to that in a perfectly competitive labor market, depending on labor supply.E) All of the above
F) A) and B)

Question 11

If robotics and factory automation become more widespread in an industry and all else is held constant:

Accepted Answer

A)  both the demand for labor in that industry and the wage rate should increase.
B)  both the demand for labor in that industry and the wage rate should decrease.
C)  the demand for labor should decrease in that industry and the wage rate should increase.
D)  the demand for labor should increase in that industry and the wage rate should decrease.E) B) and C)
F) A) and D)

Question 12

If a single union supplies all the labor in a competitive labor market, the union probably will:

Accepted Answer

A)  increase labor supply to raise employment.
B)  restrict labor supply to raise wages.
C)  increase union membership to increase wages.
D)  behave as a monopsonist.E) B) and D)
F) A) and D)

Question 13

Firms that discriminate are:

Accepted Answer

A)  always less profitable than firms that do not.
B)  always more profitable than firms that do not.
C)  sometimes more profitable than firms that do not.
D)  irrational.E) All of the above
F) None of the above

Question 14

Suppose wages increase but employment decreases. These changes most likely were caused by:

Accepted Answer

A)  an increase in labor demand.
B)  an increase in labor supply.
C)  a decrease in labor demand.
D)  a decrease in labor supply.E) A) and C)
F) A) and B)

Question 15

Why is the normal shape of the labor supply curve upward sloping?

Accepted Answer

The labor supply curve is upward sloping...

Question 16

If the wages and productivity of U.S. workers are higher than those of Mexican workers, a Japanese company would:

Accepted Answer

A)  build a plant in the United States.
B)  build a plant in Mexico.
C)  be indifferent about where the plant is built.
D)  require more information before deciding where the plant is built.E) B) and C)
F) All of the above

Question 17

Suppose you are considering two possible summer jobs.One is with an outdoor painting company as a painter,the other is as a sales associate in an up-scale department store (please assume that you are in this strictly for the money,so ignore whether one job sounds inherently more or less attractive to you personally).Both jobs are union jobs,and both unions are presently negotiating for significant wage increases.You can't afford to get laid off half way through the summer,and the last people hired will be the first laid off if there is a layoff,so you are concerned about the elasticity of demand for labor for both employers.Which would probably be more elastic,and why?

Accepted Answer

The strength of the argument is perhaps ...

Question 18

What are efficiency wages and comparable worth laws? How does each impact the labor market?

Accepted Answer

Efficiency wages are wages paid above th...

Question 19

If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

Accepted Answer

A)  .5.
B)  −.5.
C)  2.
D)  −2.E) C) and D)
F) B) and C)

Question 20

What government programs,other than income taxes,have a negative incentive effect on individuals' work effort?

Accepted Answer

Taxes aren't the only government interve...

Exam 17: Work and the Labor Market

Business lobbyists tend to argue against a living wage law by arguing that it is a price:

Correct Answer
verified

If robotics and factory automation become more widespread in an industry and all else is held constant:

Correct Answer
verified

What government programs,other than income taxes,have a negative incentive effect on individuals' work effort?

Correct Answer
verified
Taxes aren't the only government interve...
View Answer

A monopsonist will pay a wage that:

Correct Answer
verified

What are efficiency wages? Why do firms pay them?

Correct Answer
verified
Efficiency wages are wages pai...
View Answer

If a single union supplies all the labor in a competitive labor market, the union probably will:

Correct Answer
verified

Which of the following will shift the labor demand curve to the right?

Correct Answer
verified

What are efficiency wages and comparable worth laws? How does each impact the labor market?

Correct Answer
verified
Efficiency wages are wages paid above th...
View Answer

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the wage rate of workers who remain in Haiti would be expected to:

Correct Answer
verified

A firm's demand for labor is derived from the:

Correct Answer
verified

Refer to the graphs shown. If labor supply shifts from S₁ to S₂, the market wage rate will:

Correct Answer
verified

Why is the normal shape of the labor supply curve upward sloping?

Correct Answer
verified
The labor supply curve is upward sloping...
View Answer

If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

Correct Answer
verified

If the wages and productivity of U.S. workers are higher than those of Mexican workers, a Japanese company would:

Correct Answer
verified

The elasticity of the labor supply curve depends on all of the following factors except:

Correct Answer
verified

The demand for labor is a derived demand because:

Correct Answer
verified

Suppose wages increase but employment decreases. These changes most likely were caused by:

Correct Answer
verified

Firms that discriminate are:

Correct Answer
verified

What is a monopsony? Why in this case are the marginal factor cost and the supply not the same?

Correct Answer
verified
A monopsony is a market in which a singl...
View Answer

Correct Answer
verified
The strength of the argument is perhaps ...
View Answer

Exam 17: Work and the Labor Market

Business lobbyists tend to argue against a living wage law by arguing that it is a price:

Correct AnswerverifiedShow Answer

If robotics and factory automation become more widespread in an industry and all else is held constant:

Correct AnswerverifiedShow Answer

What government programs,other than income taxes,have a negative incentive effect on individuals' work effort?

Correct AnswerverifiedTaxes aren't the only government interve...View AnswerShow Answer

A monopsonist will pay a wage that:

Correct AnswerverifiedShow Answer

What are efficiency wages? Why do firms pay them?

Correct AnswerverifiedEfficiency wages are wages pai...View AnswerShow Answer

If a single union supplies all the labor in a competitive labor market, the union probably will:

Correct AnswerverifiedShow Answer

Which of the following will shift the labor demand curve to the right?

Correct AnswerverifiedShow Answer

What are efficiency wages and comparable worth laws? How does each impact the labor market?

Correct AnswerverifiedEfficiency wages are wages paid above th...View AnswerShow Answer

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the wage rate of workers who remain in Haiti would be expected to:

Correct AnswerverifiedShow Answer

A firm's demand for labor is derived from the:

Correct AnswerverifiedShow Answer

Refer to the graphs shown. If labor supply shifts from S1 to S2, the market wage rate will:

Correct AnswerverifiedShow Answer

Why is the normal shape of the labor supply curve upward sloping?

Correct AnswerverifiedThe labor supply curve is upward sloping...View AnswerShow Answer

If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

Correct AnswerverifiedShow Answer

If the wages and productivity of U.S. workers are higher than those of Mexican workers, a Japanese company would:

Correct AnswerverifiedShow Answer

The elasticity of the labor supply curve depends on all of the following factors except:

Correct AnswerverifiedShow Answer

The demand for labor is a derived demand because:

Correct AnswerverifiedShow Answer

Suppose wages increase but employment decreases. These changes most likely were caused by:

Correct AnswerverifiedShow Answer

Firms that discriminate are:

Correct AnswerverifiedShow Answer

What is a monopsony? Why in this case are the marginal factor cost and the supply not the same?

Correct AnswerverifiedA monopsony is a market in which a singl...View AnswerShow Answer

Correct AnswerverifiedThe strength of the argument is perhaps ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Taxes aren't the only government interve...
View Answer

Correct Answer
verified

Correct Answer
verified
Efficiency wages are wages pai...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Efficiency wages are wages paid above th...
View Answer

Correct Answer
verified

Correct Answer
verified

Refer to the graphs shown. If labor supply shifts from S₁ to S₂, the market wage rate will:

Correct Answer
verified

Correct Answer
verified
The labor supply curve is upward sloping...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A monopsony is a market in which a singl...
View Answer

Correct Answer
verified
The strength of the argument is perhaps ...
View Answer