WEEK 7 ECN

Which of the following is NOT true regarding discrimination in labor markets?

Any differences in wages between members of different racial or age groups is due to discrimination.

Consider the labor market, predict which of the following create an incentive for investment in capital?

Higher wages

Which of the following is a valid explanation of why a star movie actor earns many times more than a star Broadway actor?

In one evening, many more people can view a movie than can see a Broadway play.

The marginal revenue product of labor is equal to:

MPL × P.

How can a company's hiring manager attract workers who are motivated to advance in their field?

Provide training.

Which of the following would shift the labor supply curve?

The government increases its provision of childcare services.

The population of Japan is declining. What impact will this have on the labor market for optometrists in Japan?

The optometrist labor supply curve shifts leftward.

What will happen in the labor market for aestheticians if the government deregulates the industry and no longer requires individuals to obtain a license to work as aestheticians?

The supply of workers will increase, resulting in a lower wage and higher quantity of labor.

How does the pay of unionized workers compare with that of nonunionized workers in similar jobs, on average?

Unionized workers earn more.

Alena manages a small theme park. She hires one more custodian at $450 per week, and her park is cleaner and more attractive. As a result of this improvement, ticket sales rise by 40 tickets per week. Tickets sell for $12. Use the Rational Rule for Employers to determine if hiring the extra custodian was a good move.

Yes, it was a good move because it added more revenue than to cost

When it is hard to monitor worker productivity, employers often pay:

a higher wage

The costs of working do NOT include what

could have been bought with the income earned.

Why does an employer's labor demand curve slope downward?

diminishing marginal product

Compensating differentials lead to:

higher salaries for more unpleasant jobs.

An efficiency wage is a:

higher wage paid to encourage greater worker productivity.

The three key labor market decisions that you make do NOT include

how many workers to hire.

The income effect measures

how people's choices change when they have more income.

The accumulated knowledge and skills that make a worker more productive are known as:

human capital

Consideration of the benefits of choosing an occupation should NOT include

if you find it easy.

Callie's firm uses a proprietary and complicated production process to ensure product quality. Her workers are carefully trained in this process as soon as they are hired. Callie thereby:

invests in job-specific skills.

What impact has technology had on the difference between the income of the best engineers and that of good engineers?

it has increased the gap in income significantly

Unions are organizations that:

jointly represent a group of workers in negotiating with employers.

If a company incurs expenses to start providing childcare at work so that employees can have lunch with their preschool children, the company's demand curve for labor will shift to the

left because employees are more expensive to the firm.

Employees will be motivated to work hard and try to help their employer succeed if the company:

lives up to a core set of ideals that workers identify with.

The three sources of discrimination do NOT include:

malevolent bias.

If the demand for Ono Yo's organic frozen yogurt increases, then the _____ Ono Yo's workers will _____.

marginal revenue product of; increase

The marginal revenue from hiring an additional worker is known as

marginal revenue product.

An employer who discriminates in hiring based on prejudice is likely to have higher costs than necessary because:

more productive workers may be forgone in order to hire less productive workers who have preferred characteristics.

Kaila wants her employer to pay her 20% more for making night deliveries in a high-crime neighborhood than the day delivery people receive. Most of the delivery people are willing to make night deliveries in the neighborhood for only a 10% differential. Kaila is seeking:

more than a compensating differential because she has greater concerns than most workers.

The labor supply curve for social workers will shift to the right when:

nonwage benefits increase for social workers.

The Rational Rule for Workers is to work

one more hour as long as the wage is at least as large as the marginal benefit of another hour of leisure.

Linking your workers' earnings to their performance is called:

pay-for-performance.

A preconceived bias against a group that's not based on reason or experience is known as:

prejudice.

Studies of the minimum wage indicate that minimum wage laws _____ employment opportunities for low-skilled workers, but there is less agreement regarding _____.

reduce; the amount of the reduction

When the government requires that a person have a license to work in a particular occupation, then in the labor market for that occupation:

supply decreases

In the labor market for computer programmers, the labor demand represents

the employers looking to hire programmers.

The Rational Rule for Employers implies that they keep hiring until

the wage equals the marginal revenue product of the last worker hired.

In a perfectly competitive labor market, employers will not pay less than the market wage because at a wage below the equilibrium

they would not be able to hire anyone.

Which graph shows the scenario where the substitution effect dominates labor supply decisions?

upward sloping

In a labor market graph, _____ is measured on the vertical axis, and _____ is measured on the horizontal axis.

wage;hours of labor

the three key labor market decisions that you make include

what kind of work to do. how many hours to work. whether to work.

The opportunity cost of working is

what you would have done during the time if you were not working.