Exam 17: Wage Determination

A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. How many workers will the profit-maximizing firm hire if the wage rate is $15 per day?

The supply curve of labor faced by an individual firm in a purely competitive labor market is horizontal.

Restricting the supply of labor is a means of increasing wage rates more commonly used by industrial unions than craft unions.

Seven of the 50 states account for approximately half of all union members in the United States.

If the nominal wages of carpenters rose by 5 percent in 2019 and the price level increased by 3 percent, then the real wages of carpenters

The long-run trend of real wages

In considering real-world situations, we must recognize the fact that by "wages" in this chapter, we mean the following, except the

A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table. If the wage rate decreases from $17.50 to $16.50, by how much will the firm expand employment?

Refer to the given data. At the profit-maximizing level of employment, this firm's total labor cost will be

Describe the current status of unions in the United States and the major union organizations.

Refer to the given data. If the market wage rate is $8 and the firm hires its profit-maximizing number of workers, the firm's total wage bill (payment)will be

The graph represents the supply and demand for labor in a purely competitive market. The price of labor that an individual firm in this market would take as given is

The table shows labor demand data on the left and labor supply data on the right. What will be the profit-maximizing wage rate?

A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

Piece-rates may not be appropriate pay in some situations because they might reduce product quality.

The consumer price index is 132 in Year 1 and 125 in Year 2. The nominal wage rate is $31 in Year 1 and $30 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?

Given the table for a competitive firm that is maximizing profits, if the marginal revenue product of the last worker hired is $300 and three workers are employed per day, the price of a unit of output must be

A monopsonist in equilibrium will hire labor at a level where MRP = MRC > W.

Nominal wage measures the purchasing power of a given amount of real wage.