chapter 28 reading quiz
Changes in working conditions in an industry can affect its labor demand curve but not its labor supply curve.
False
The marginal revenue curve for a monopolist always lies above the downward-sloping product demand curve.
False
The market demand curve for labor is a simple horizontal summation of the labor demand curves of all individual firms.
False
Each firm purchasing labor in a perfectly competitive market can purchase all of the input it wants at the going market wage.
True
If a perfectly competitive industry in the output market suddenly became one in which there is monopoly in the output market, the amount of employment would fall.
True
In a perfectly competitive labor market, firms are price takers.
True
In a prefectly competitive market, firms will hire workers up to the point where the wage rate equals the marginal revenue product.
True
The marginal product of labor represents the extra output attributed to employing additional workers.
True
To minimize total costs for a particular rate of production, the firm will hire factors of production up to the point at which the marginal product per last dollar spent on each factor of production is equalized.
True
Under conditions of perfect competition in both product and labor markets, the demand for labor is a derived demand.
True
The labor demand curve will shift for all of the following reasons except
a change in wages in a competing industry.
The market demand curve for labor
is downward sloping.
For a monopolist, marginal revenue
is less than price.
Marginal revenue product is calculated as
marginal product) times (marginal revenue).
Which of the following statements is not correct: The price elasticity of demand for a variable input will be greater
the shorter the time period available for adjustment.
Labor outsourcing by U.S. firms tends to ________ U.S. wages and employment. Whenever foreign firms engage in labor outsourcing in the United States, U.S. wages and employment tend to ________.
decrease; increase
If the marginal productivity of labor increases, the ________ curve for labor will shift to the ________.
demand; right
When U.S. firms are the home firms engaging in labor outsourcing, the effects are ________ wages and ________ employment in the relevant U.S. labor markets.
lower; decreased