ECON Mod 11

Which of the following most resembles a case of taste-based discrimination?

Austin has a deep-seeded hatred of bald-headed men and refuses to hire any to work at his car wash.

Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?

Employers engaging in taste-based discrimination are willing to forego profits, whereas employers engaging in statistical discrimination are trying to enhance profits.

If the supply of labor increases, which of the following events will occur?

The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate.

Assume that a comparable worth law is passed that determines that kindergarten teachers and bricklayers have comparable jobs; therefore, workers in both of these occupations should be paid the same wages. Assume that prior to the law, bricklayers were paid a higher wage than kindergarten teachers. Which of the following is the most likely result of the comparable worth law?

There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.

Higher wages that compensate workers for unpleasant aspects of a job are called compensating differentials.

True

An increase in technology that enhances labor productivity will likely result in:

an increase in labor employment and an increase in the wage rate.

Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?

because the supply of talented major league baseball players is low relative to its demand compared to the supply of neurosurgeons. Therefore, adding another player yields far greater marginal benefit than adding another neurosurgeon.

The value of the marginal product of labor is the ________

contribution of an additional unit of labor to a firm's revenue

Consider a labor market in equilibrium. If the demand curve shifts to the left while the supply curve shifts to the left, then the number of workers hired in the market will ________.

decrease

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

how many workers to hire at each wage rate.

A firm's demand for labor curve is also called its

marginal revenue product of labor curve.

If both the demand for labor and the supply of labor increase, then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

might rise, fall, or not change; increases

You observe that more labor is employed and the wage rate increases. This set of events could have been the result of a

rightward shift of the labor demand curve.

If the marginal productivity of labor decreases, then

the quantity of labor demanded at every possible wage rate will be less.