Exam 16: The Labor Market

As labor productivity increases, which of the following shifts in the labor market should occur?

In general, it can be said that leisure is a "free good." The value of any activity will be at least the value of the opportunity cost.Therefore, the best estimate of the value of an hour of leisure is the hourly wage that could have been earned.

The labor supply curve will be positively sloped if the substitution effect of wages is

If Janella increases her supply of labor by 6 percent in response to a 5 percent increase in the wage rate, her elasticity of labor supply must be

One In the News article is titled "Challenging Work and Corporate Responsibility Will Lure MBA Grads." In the headline, which of the following determinants of labor supply is most explicitly mentioned?

A profit-maximizing firm should continue to hire workers until the MRP has declined to the level of the market wage rate in a competitive labor market.

An effective minimum wage will increase the quantity demanded of labor.

The elasticity of labor supply does not depend on

The number of hours that a worker is willing to work is determined by the trade-off between the increasing

If the number of employers for a particular type of labor increases, which of the following shifts should occur in the labor market for the particular type of labor?

The willingness to work a certain amount of time at a given wage rate is known as

Other things being equal, which of the following would increase the market demand for labor?

When a labor supply curve is backward-bending, the elasticity of labor supply in the backward-bending portion is

Joe Sabia, an assistant professor of public policy at American University in Washington, DC, says that a 10 percent increase in the minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.If President Obama is successful increasing the minimum wage by 30 percent as explained in "Obama Wants $9.50 Minimum Wage," we can expect

Number of stylist (per week)	total output(per week)	marginal physical product (output per stylist)	total revenue(dollars per week)	marginal revenue product (dollars per stylist)
0	0	......	$0	........
1	60	______	______	______
2	80	______	______	______
3	90	______	______	______
4	90	______	______	______

Table $30.2$ Hairstyling Appointments and Revenues Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided, compute the marginal physical product (MPP) of the hair stylists, total revenue, and marginal revenue product of the stylists, assuming that a hair stylist charges $60 per appointment.In Table 30.2, suppose a hairstylist is paid $600 per week.How many hairstylists should a profit-maximizing salon hire?

Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?

The argument is sometimes made that the United States should not trade with low-wage countries.The reasoning is that more highly paid U.S.workers cannot compete, and U.S.jobs are lost.What is wrong with this argument?

Explain the concept of a backward-bending labor supply curve.

The marginal revenue product of labor curve is the firm's

Workers typically require higher wages in order to work additional hours because of the