Exam 19: Factor Markets and the Distribution of Income

The U.S. labor market shows large differences in the median earnings of workers according to gender and ethnicity.

Alex's boss notices that with each course Alex takes, he becomes a more knowledgeable and efficient worker. This is an example of:

Barry's Brewpub is considering hiring more brewmasters. The market wage for a brewmaster is $120 per day. The average brewmaster produces 40 pints of beer per day, but Barry expects the next brewmaster to produce only 20 pints per day. Assuming the market for beer is perfectly competitive, Barry's Brewpub will hire another brewmaster only if:

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. Which of the following statements is TRUE?

Approximately 71% of income generated in the United States goes to corporate profit.

An increase in the demand for construction workers may come about because of a(n):

The median earnings of Hispanics are greater than the median earnings of African Americans.

All perfectly competitive fast-food firms are hiring the profit-maximizing quantity of labor and are paying their workers $7 per hour. If the government raises the minimum wage to $8 per hour:

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. Now suppose during the holiday season the price of poster-size copies increases to $12. What happens?

A lower wage:

When the demand for automobiles is high, the demand for workers who build automobiles is high. This relation between the market for automobiles and the market for the labor that builds automobiles is why demand in a factor market is called:

The trade-off between work and leisure underlying the supply of labor involves the income effect and the _____ effect.

The amount that an additional unit of a factor adds to a firm's total revenue is called the:

The opportunity cost of an hour of leisure increases if the hour of leisure time is spent in an unproductive activity and decreases if the hour of leisure time is spent in a productive activity.

During the holiday season some people take a second job or work more hours. From this we know that:

Which of the following is NOT a factor of production at a college?

Differences in the attractiveness of different types of jobs resulting in differences in wages is NOT consistent with the marginal productivity theory of income distribution.

Wage differences across jobs reflecting the fact that some jobs are less pleasant than others are called compensating differentials.

A higher wage _____ the price of _____ and _____ workers' incomes. The result pulls the quantity of labor supplied in _____ direction(s).

The labor demand curve in a perfectly competitive factor market is the horizontal sum of all firms' _____ product of labor curves.