Question 1

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. 
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.

Question 2

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 3

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. 
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.

Question 4

Refer to the graphs shown.   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. 
A) increase from W0 to W1. 
B) increase from W1 to W2. 
C) decrease from W1 to W0. 
D) decrease from W2 to W1.

Question 5

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. 
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.

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

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. 
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.

Question 8

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

Question 9

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. 
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.

Question 10

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. 
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.

Question 11

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

Accepted Answer

The labor supply curve is upward sloping

Question 12

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 13

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. 
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.

Question 14

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. 
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.

Question 15

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 automation 
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 automation

Question 16

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

Question 17

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. 
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.

Question 18

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. 
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.

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. 
A) .5. 
B) −.5. 
C) 2. 
D) −2.

Question 20

What are efficiency wages? Why do firms pay them?

Accepted Answer

Efficiency wages are wages pai

Exam 17: Work and the Labor Market

A monopsonist will pay a wage that:

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

Firms that discriminate are:

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

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

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

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

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

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

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:

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

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

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

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

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

The demand for labor is a derived demand because:

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

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

What are efficiency wages? Why do firms pay them?

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters

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