Exam 10: Wage Determination

A firm is observed using 15 units of input X when the price of X is $2,and 10 units of X when its price increases to $4.What is the elasticity of demand for input X in this price range?

If the price of labor falls relative to the price of capital,and as a result the quantity of capital employed decreases,it can be concluded that:

Refer to the above graph.What will shift D₁ to D₂?

If a firm is unable to influence the price of a variable productive resource by buying more or less of it,then the marginal cost of the resource is equal to the:

A monopsonist is the only seller of a good or service in a market area.

Under conditions of imperfect competition in hiring labor,union efforts to increase wages:

An increase in the demand for computers leads to an increase in demand for computer programmers.This situation arises because:

The less the elasticity of product demand,the greater the elasticity of resource demand.

Refer to the above graph.Under monopsony in the sale of output and hiring of labor services,the wage rate will be:

An expenditure on education and training that improves the skills and therefore the productivity of workers is:

Which is an example of a change in product demand that decreases labor demand?

The demand for labor will decrease in response to:

Refer to the above graph.What will shift D₁ to D₂?

Assume that capital and labor are substitutes in production.The output effect of an increase in the price of capital decreases the demand for labor.

Refer to the above graph.If the MRC increased:

Refer to the above graph.If the MRC decreased:

The best example of a monopsonist is:

A firm's labor input,total output of labor,and product price schedules are given below.Labor is the only variable input. Refer to the above table and information.What is the marginal revenue product of the fifth worker?

The demand for labor would most likely become more elastic as a result of:

A firm is faced with the following schedules of employment,revenue,and wages. How many workers will be employed by the profit-maximizing firm?