Exam 19: Factor Markets and the Distribution of Income

Which factor will NOT shift the labour supply curve?

As stock prices rise and workers' wealth increases,workers will increase the quantity supplied of labour because they will want to buy more stock.

Market forces tend to work against discrimination.

Use the following to answer questions : Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.The equilibrium market wage for bricklayers is $100 a day,but a minimum wage of $130 a day for bricklayers is set by the government.As a result:

Leisure is considered a normal good since people:

Which statement is TRUE?

According to the marginal productivity theory of income distribution,in a competitive economy,each factor of production is paid its equilibrium value of the marginal product.

The marginal productivity theory of income distribution is based on the assumption that factor markets are perfectly competitive.

Time allocation refers to:

Gabriella often faces a trade-off between time at the beach and time working as a model.She earns $40 per hour as a model and values going to the beach at the same price.When explaining this to her parents,she says,"The marginal utility per hour working is the same as the marginal utility per hour of going to the beach." This example illustrates:

Compensating differentials are used to motivate employees and to reduce worker turnover.

Use the following to answer questions : $\text {Table: Value of the Marginal}$ $\text {Product of Labour at Demand}$ Quantity of Labour Total Product 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 150 8 140 -(Table: Value of the Marginal Product of Labour and Demand)Use Table: Value of the Marginal Product of Labour and Demand.In the table,the total product of labour is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.If the price of a power cord is $2 and the market wage rate is $20 per hour,the profit-maximizing quantity of labour is _____ workers.

Sam and Bob have the same educational background.Both have been policemen in Calgary for 10 years.Sam works from 11 P.M.until 7 A.M. ,and Bob works from 7 A.M.until 3 P.M.Sam's salary is $800 per month,which is higher than Bob's salary.This example illustrates a wage disparity due to:

Liyun owns a small flower shop,and the industry is perfectly competitive.She is considering whether to hire an additional worker.The wage rate for the worker is $500 per week,the marginal product of the additional worker would be 100 units per week,and the price of the units is $10 each.Liyun should:

A _____ wage will _____ the _____ leisure.

The fact that Carey Price,the goaltender for the Montreal Canadians,is paid more than a high school hockey coach is an example of a wage disparity caused by compensating differentials.

In the Canadian labour market,new immigrants have the highest median earnings of any of the major demographic groups discussed in the chapter.

Use the following to answer questions : Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage rate for bricklayers rises from $80 to $100,the _____ bricklayers will _____.

A lumberjack cutting large trees in rural British Colombia being paid more than a person cutting and selling small Christmas trees is an example of wage disparity due primarily to compensating differentials.

Human capital is the improvement in _____ produced by _____.