Exam 11: The Labor Market

Which of these statements is TRUE? I. 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 Equal Pay Act of 1963. II. Hamid, a 43-year-old male, has decided to take legal action under the Lily Ledbetter Act since finding out that he did not get a job due to his age. III. Amy suspects that she was refused a promotion due to her race. The Americans with Disabilities Act made this type of employer behavior illegal.

The income effect for labor supply states that people work

If nineteen workers are each paid $10 an hour and hiring the twentieth worker requires that all workers be paid $11 an hour, the marginal factor cost of the twentieth worker is $30.

Karl Marx wrote

Which factor is LEAST likely to shift the labor supply curve for web designers?

If Tax Preparation Strategies, a competitive firm, invests in better computer software

According to Gary Becker's theory on economic discrimination, employers who successfully discriminate in their hiring practices will

If the wages of Nike employees increase by 25% and the quantity of labor demanded decreases by 10%, the demand for labor

(Table) Based on the table, what is the value of B? Units of Labor Quantity of Output Product Price Marginal Revenue Product 1 20 \ 10 2 28 10 A 3 35 10 B 4 41 10 C 5 D 10 \ 30 6 35 10

A firm with monopoly power will equate the wage with the value of the marginal product in order to examine how many employees to hire.

If individuals have more income from sources other than work, then the hours of work supplied will decrease.

(Figure: Monopolists in Monopsony Markets) The graph depicts a firm that is a monopolist in the product market but a monopsony in the input market. Which curve represents the marginal factor cost?

Which change will cause the market labor supply curve of industry A to shift to the left?

Marginal revenue product is defined as the marginal product times marginal revenue.

The _____ effect explains why individuals would prefer work to leisure when wages rise.

Title VII of _____ makes it unlawful to "refuse to hire or discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual's race, color, religion, sex, or national origin."

In imperfect labor markets

Describe the factors that can change labor demand.

If there is one hospital in a small town, it is likely to be a monopsony in the market for nurses.

Fewer than 50% of families with small children are two-earner households.