Exam 12: The Markets for Labour and Other Factors of Production

If a dollar a year from now will likely have less purchasing power because of inflation,then a dollar today ________ a dollar a year from now.

Along an upward sloping labour supply curve,as the wage rate increases,the opportunity cost of leisure ________,causing individuals to supply a ________ quantity of labour.

One difference between the labour market and markets for goods and services is

Let MP = marginal product,P = output price,and W = wage,then the equation that represents the condition where a competitive firm would hire another worker is

If a stock's dividend is expected to grow at a constant rate of eight per cent in the future and it has just paid a dividend of $1.25 a share,and you have an alternative investment of equal risk that will earn a 12 per cent rate of return,what would you be willing to pay per share for this stock?

For a firm that is a price taker in the market for labour,the marginal revenue product of labour equals the

The market supply curve for labour is

While labour unions tend to negotiate above-equilibrium wage rates for their members,they also tend to reduce the quantity of labour hired.

Suppose the following two events occur in the domestic market for radiologists: A.Some hospitals are outsourcing some radiology services such as reading x-rays. B.Some medical schools have closed down their radiology departments as fewer students enroll in this field. What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?

The supply curve of a uniquely talented actor or superstar athlete will be perfectly inelastic.

Which of the following statements about commission systems of compensation is false?

Firms use information on labour's marginal revenue product to determine

In general,the supply curve for a natural resource

Marginal revenue product for a perfectly competitive seller is equal to

What are the five most important variables that cause the market demand curve for labour to shift?

Which of the following would cause an increase in the equilibrium wage?

The income effect of a wage increase is observed when

If the labour demand curve shifts to the left and the labour supply curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

If the labour supply curve shifts to the left and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

One implication of compensating differentials is that laws passed to protect the health and safety of workers may not make workers better off than they were prior to the passages of the laws.Why is this so?