Exam 13: Factor Markets: With Emphasis on the Labor Market

Promoting from within should __________ be regarded as an act of discrimination because the information costs of inside versus outside employees are __________.

Marginal revenue product (MRP)is

Exhibit 26-5 Refer to Exhibit 26-5. Assume that the firm is a factor price taker and that the price of a unit of labor is constant at $1,000. The firm should hire __________ of labor.

If all the individuals had the same innate and learned skills and abilities, applied the same degree of effort on the job, and worked with the same amount and quality of other factors of production,

To minimize cost, a firm should hire two factors, X and Y, until

If the wage rate increases from $15 to $17 and, as a result, the quantity demanded of labor decreases from 700 workers to 650 workers, then the absolute value of the elasticity of demand for labor is

Why does the marginal revenue product (MRP)curve slope downward for a perfectly competitive firm?

Suppose a factor price taker purchases one unit of factor X for $10. At what price would it purchase the second unit, and what would marginal factor cost (MFC)equal?

If a perfectly competitive firm is a factor price taker,

For a factor price taker, the factor supply curve is __________, whereas the market factor supply curve is __________.

Value marginal product (VMP)is

Elasticity of demand for labor measures the percentage change in quantity demanded of labor that is brought about by a percentage change in the

Exhibit 26-5 Refer to Exhibit 26-5. The value of marginal product (VMP)of the third unit of labor equals

Suppose that all the necessary conditions exist for the realization of equal wage rates in every labor market, but that currently the wage rate in market X is higher than the wage rate in market Y. We expect that eventually the wage rate

Exhibit 26-2 ​ Refer to Exhibit 26-2. What type of firm are we dealing with?

Exhibit 26-5 Refer to Exhibit 26-5. The marginal revenue product of the fifth unit of labor is

If the market supply of labor increases, the total wage income will increase if the

Exhibit 26-4 ​ Refer to Exhibit 26-4. The marginal factor cost of labor

If, at a particular wage rate in a competitive market, the quantity demanded of labor exceeds the quantity supplied of labor, then

Employers use screening mechanisms, such as GPA, because they lack complete information about job applicants.