Exam 11: Labour Markets and the Distribution of Income

If an additional sales clerk is hired to work in a furniture store, the clerk's sales efforts will contribute $700 to the store's total revenue. Under what circumstances will the store's profits rise if the additional sales clerk is hired?

Which of the following is NOT an example of job amenities?

When a firm is competitive in both product and factor markets, which of the following statements best describes the value of the marginal product of labour?

If the demand for hockey players increases faster than the supply, wages will rise.

Why do scholars argue that government activity should be considered when evaluating the measured income distribution?

Discrimination occurs when someone is denied employment on the basis of some noneconomic factor such as race, religion, or gender.

From a purely economic point of view, when does discrimination exist?

FIGURE 11-2 -Refer to Figure 11-2. When unions successfully increase the wages of their members, what happens to the supply curve and workers in the union sector?

Increases in income from sources other than employment can cause the labour supply curve to shift to the left.

If a specific labour market is considered to be a monopsony, who has the power and can impact wages?

Which of the following results in a rightward shift of the market demand curve for labour?

What do improvements in the productivity of labour tend to result in?

How does employment under a monopsony differ from employment under perfect competition?

Which of the following best describes the impact of unionization on given occupations?

Families often strive to treat all members equally. Would this be an effective economic policy for the society?

Why do K-12 teachers, who provide a valuable service to the community, earn substantially less than professional hockey players?

Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $50 per day? Why or why not?

If above a certain wage rate a worker prefers to work less and enjoy more leisure (the income effect dominates the substitution effect), how is the labour supply curve drawn?

Ceteris paribus, if the cost of feeding and housing a family were to increase, what would this increase?

What might negate the benefits of employment equity programs?