Exam 11: The Labor Market

If the price of diesel fuel increases, the MRP curve for truck drivers will

Compared with a competitive labor market, a monopsony hires _____ workers and pays _____ wages.

Jack works for a large lumber company. Although he chose not to join the union for personal reasons, he is still required to pay union dues. Jack's company is represented by which form of union?

When wages rise high enough, a substitution effect occurs in which leisure is traded for income.

A craft union represents workers

The easier it is to substitute capital for labor, the more elastic is the demand for labor.

When the work environment improves, labor supply will decrease.

In the town of Econ City, a single employer dominates the labor market. This is an example of a(n)

In a competitive labor market, firms should hire workers up to the point at which the

(Figure: Labor Monopsony) The monopsony in the input market (as shown in the graph), which is also a competitive firm in the product market, would pay _____ in wages.

What conclusions does Gary Becker draw about the possibility of discrimination still occurring in the long run? What might be some explanations for discrimination still taking place today?

An imperfect labor market is a market that is noncompetitive.

A monopsony hires workers up to the point at which the

The labor supply curve for any occupation or industry is downward sloping.

(Table) Based on the table, the value for B is Competitive Labor Market L Q MPP 0 0 0 8 0 80 1 5 5 8 40 80 2 11 6 8 48 80 3 18 7 8 56 80 4 9 8 72 80 5 38 8 88 80 6 50 12 8 80 7 61 11 8 88 80 8 71 10 8 80 80 9 80 9 8 72 80 10 85 5 8 40 80

In economics, the term _____ encompasses all activities that do not involve paid work.

Which theory of economic discrimination suggests that discrimination does not necessarily benefit the person who discriminates?

In competitive labor markets, the going wage is

Factors that affect the elasticity of demand for labor include all of these EXCEPT

Over 90% of all families with small children are two-earner households.