Question 1

Describe the factors that can change labor supply.

Accepted Answer

Changes in population, immigration patte

Question 2

An increase in the number of immigrants will shift the labor _____ curve to the _____.

Accepted Answer

A)  demand; right 
B)  demand; left 
C)  supply; right 
D)  supply; left 
A)  demand; right 
B)  demand; left 
C)  supply; right 
D)  supply; left

Question 3

As the marginal revenue product for labor declines, the demand curve for labor

Accepted Answer

A)  shifts to the left. 
B)  shifts to the right. 
C)  does not change. 
D)  bends backward. 
A)  shifts to the left. 
B)  shifts to the right. 
C)  does not change. 
D)  bends backward.

Question 4

The _____ maintains that workers are segregated into those who belong to unions and those who are unemployed or nonunion workers.

Accepted Answer

A)  dual labor market hypothesis 
B)  job crowding hypothesis 
C)  insider-outsider theory 
D)  efficient markets theory 
A)  dual labor market hypothesis 
B)  job crowding hypothesis 
C)  insider-outsider theory 
D)  efficient markets theory

Question 5

Jennifer discovered that she receives a substantially lower salary than Ted, who has the same level of education and ability as she does. This is considered illegal under the

Accepted Answer

A)  Civil Rights Act of 1964. 
B)  Equal Pay Act of 1963. 
C)  Executive Order 11246. 
D)  Taft-Hartley Act of 1947. 
A)  Civil Rights Act of 1964. 
B)  Equal Pay Act of 1963. 
C)  Executive Order 11246. 
D)  Taft-Hartley Act of 1947.

Question 6

An individual's supply of labor is _____ to the wage rate.

Accepted Answer

A)  directly related 
B)  inversely related 
C)  backward bending with relation 
D)  not related 
A)  directly related 
B)  inversely related 
C)  backward bending with relation 
D)  not related

Question 7

According to Becker's theory of economic discrimination, firms that are likely to pay more in labor costs, all else equal, are those that

Accepted Answer

A)  never discriminate in labor markets. 
B)  have minimal to moderate levels of employee preferences. 
C)  have high discriminatory preferences for workers. 
D)  ignore discriminatory tastes in workers by their customers. 
A)  never discriminate in labor markets. 
B)  have minimal to moderate levels of employee preferences. 
C)  have high discriminatory preferences for workers. 
D)  ignore discriminatory tastes in workers by their customers.

Question 8

All of these will cause a shift in the labor demand curve EXCEPT a change in the

Accepted Answer

A)  demand for the final product. 
B)  productivity of labor. 
C)  price of a complementary input. 
D)  supply of labor. 
A)  demand for the final product. 
B)  productivity of labor. 
C)  price of a complementary input. 
D)  supply of labor.

Question 9

According to the segmented labor market theory, firms in competitive markets have no real incentive to eliminate the wage gap once it is established.

Accepted Answer

A) True 
 B)False

Question 10

Successful collective bargaining in the union sector causes wages

Accepted Answer

A)  and employment to be higher in the nonunion sector. 
B)  to be lower but employment to be higher in the nonunion sector. 
C)  and employment to be lower in the nonunion sector. 
D)  to be higher but employment to be lower in the nonunion sector. 
A)  and employment to be higher in the nonunion sector. 
B)  to be lower but employment to be higher in the nonunion sector. 
C)  and employment to be lower in the nonunion sector. 
D)  to be higher but employment to be lower in the nonunion sector.

Question 11

Which segmented labor market theory argues that occupations are segmented into predominately male and female jobs?

Accepted Answer

A)  dual labor market hypothesis 
B)  discriminating tastes hypothesis 
C)  job crowding hypothesis 
D)  insider-outsider theory 
A)  dual labor market hypothesis 
B)  discriminating tastes hypothesis 
C)  job crowding hypothesis 
D)  insider-outsider theory

Question 12

In the short run, when labor is the only variable factor of production, demand for labor tends to be more elastic.

Accepted Answer

A) True 
 B)False

Question 13

The elasticity of demand for labor in the electric-vehicle battery market will likely rise if

Accepted Answer

A)  the elasticity of demand for electric-vehicle batteries falls. 
B)  labor's share of total production costs of electric-vehicle batteries is small. 
C)  labor is the only variable factor of production due to time constraints. 
D)  robots can easily be substituted in place of labor in electric-vehicle battery production. 
A)  the elasticity of demand for electric-vehicle batteries falls. 
B)  labor's share of total production costs of electric-vehicle batteries is small. 
C)  labor is the only variable factor of production due to time constraints. 
D)  robots can easily be substituted in place of labor in electric-vehicle battery production.

Question 14

In the long run, when factors of production are variable, demand for labor tends to be more elastic.

Accepted Answer

A) True 
 B)False

Question 15

The substitution effect of higher wages suggests that as your wages increase, you can work fewer hours to maintain the same standard of living.

Accepted Answer

A) True 
 B)False

Question 16

Free health insurance offered by an employer is referred to as a(n)

Accepted Answer

A)  internal payment. 
B)  fixed cost. 
C)  nonwage benefit. 
D)  transaction cost. 
A)  internal payment. 
B)  fixed cost. 
C)  nonwage benefit. 
D)  transaction cost.

Question 17

Wage rates are generally kept undisclosed within a competitive labor market.

Accepted Answer

A) True 
 B)False

Question 18

The following table shows the quantity of shaved ice desserts that can be made in one hour based on the number of workers hired. If the price of a shaved ice dessert is $6, what is the marginal revenue product of the third worker?
$\begin{array}{|l|l|l|}
\hline \text { Labor } & \text { Quantity } & M P P_{\mathrm{L}} \
\hline 1 & 6 & 6 \
\hline 2 & 16 & 10 \
\hline 3 & 25 & 9 \
\hline 4 & 32 & 7 \
\hline 5 & 37 & 5 \
\hline
\end{array}$

Accepted Answer

A)  $18 
B)  $25 
C)  $54 
D)  $150 
A)  $18 
B)  $25 
C)  $54 
D)  $150

Question 19

Which of these is the BEST example of a monopsony?

Accepted Answer

A)  gas stations near airport car rental return centers charging very high prices 
B)  a local crafts market that attracts nearly every artisan in town 
C)  a large auto assembly plant that is the only major employer in a small town 
D)  a popular restaurant that always has very long waits 
A)  gas stations near airport car rental return centers charging very high prices 
B)  a local crafts market that attracts nearly every artisan in town 
C)  a large auto assembly plant that is the only major employer in a small town 
D)  a popular restaurant that always has very long waits

Question 20

In the following graph, the wage rate paid by the employer is _____, while the value that the last worker contributes to the firm is _____.

Accepted Answer

A)  W0; W1 
B)  W1; WC 
C)  WC; W1 
D)  W0; WC 
A)  W0; W1 
B)  W1; WC 
C)  WC; W1 
D)  W0; WC

Describe the factors that can change labor supply.

An increase in the number of immigrants will shift the labor _ curve to the _.

As the marginal revenue product for labor declines, the demand curve for labor

The _____ maintains that workers are segregated into those who belong to unions and those who are unemployed or nonunion workers.

Jennifer discovered that she receives a substantially lower salary than Ted, who has the same level of education and ability as she does. This is considered illegal under the

An individual's supply of labor is _____ to the wage rate.

According to Becker's theory of economic discrimination, firms that are likely to pay more in labor costs, all else equal, are those that

All of these will cause a shift in the labor demand curve EXCEPT a change in the

According to the segmented labor market theory, firms in competitive markets have no real incentive to eliminate the wage gap once it is established.

Successful collective bargaining in the union sector causes wages

Which segmented labor market theory argues that occupations are segmented into predominately male and female jobs?

In the short run, when labor is the only variable factor of production, demand for labor tends to be more elastic.

The elasticity of demand for labor in the electric-vehicle battery market will likely rise if

In the long run, when factors of production are variable, demand for labor tends to be more elastic.

The substitution effect of higher wages suggests that as your wages increase, you can work fewer hours to maintain the same standard of living.

Free health insurance offered by an employer is referred to as a(n)

Wage rates are generally kept undisclosed within a competitive labor market.

The following table shows the quantity of shaved ice desserts that can be made in one hour based on the number of workers hired. If the price of a shaved ice dessert is $6, what is the marginal revenue product of the third worker? Labor Quantity MP 1 6 6 2 16 10 3 25 9 4 32 7 5 37 5

Which of these is the BEST example of a monopsony?

In the following graph, the wage rate paid by the employer is _, while the value that the last worker contributes to the firm is _.

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Exam 11: The Labor Market

Describe the factors that can change labor supply.

An increase in the number of immigrants will shift the labor _____ curve to the _____.

As the marginal revenue product for labor declines, the demand curve for labor

The _____ maintains that workers are segregated into those who belong to unions and those who are unemployed or nonunion workers.

Jennifer discovered that she receives a substantially lower salary than Ted, who has the same level of education and ability as she does. This is considered illegal under the

An individual's supply of labor is _____ to the wage rate.

According to Becker's theory of economic discrimination, firms that are likely to pay more in labor costs, all else equal, are those that

All of these will cause a shift in the labor demand curve EXCEPT a change in the

According to the segmented labor market theory, firms in competitive markets have no real incentive to eliminate the wage gap once it is established.

Successful collective bargaining in the union sector causes wages

Which segmented labor market theory argues that occupations are segmented into predominately male and female jobs?

In the short run, when labor is the only variable factor of production, demand for labor tends to be more elastic.

The elasticity of demand for labor in the electric-vehicle battery market will likely rise if

In the long run, when factors of production are variable, demand for labor tends to be more elastic.

The substitution effect of higher wages suggests that as your wages increase, you can work fewer hours to maintain the same standard of living.

Free health insurance offered by an employer is referred to as a(n)

Wage rates are generally kept undisclosed within a competitive labor market.

The following table shows the quantity of shaved ice desserts that can be made in one hour based on the number of workers hired. If the price of a shaved ice dessert is $6, what is the marginal revenue product of the third worker? Labor Quantity MP 1 6 6 2 16 10 3 25 9 4 32 7 5 37 5

Which of these is the BEST example of a monopsony?

In the following graph, the wage rate paid by the employer is _____, while the value that the last worker contributes to the firm is _____.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters

An increase in the number of immigrants will shift the labor _ curve to the _.

In the following graph, the wage rate paid by the employer is _, while the value that the last worker contributes to the firm is _.