Learning curve 11 and 12

human capital

An individual's accumulated productive skills are known as:

the opportunity cost of leisure rises, and workers tend to substitute work for leisure.

As the wages of hair stylists go up, on average the hours existing stylists work will go up by a small amount. This is because

the time and effort of the employees they hire

Businesses are buyers; they buy

buyers; buyers

Employers are _____; they are _____ the time and effort of the employees they hire.

the government

In a minimum-wage job, _____ set(s) your wage.

market wage

In equilibrium, a business hires workers until the marginal revenue product is equal to the:

less; highly

In order for a college degree to work as a signal, it must be substantially costlier for _____ productive workers to have a college degree than it is for _____ productive workers.

it must be less costly for highly productive workers to earn a college degree than it is for less productive workers.

In order for education to work as a signal for a company:

the forces of supply and demand

In the labor market, _____ determine(s) wages and employment.

0.016%; 250th

It is estimated that getting the very best chief executive will raise the value of your company by _____ more than the _____ best alternative.

a bit more

Jobs where it's hard for the employer to monitor an employee's effort will tend to pay _____ than jobs that are easy to monitor.

15

Licensing requirements raise the wages of those who do get licenses by as much as _____%.

compensating differentials

The government regulates the labor market in many different ways. Which option is NOT a way in which the government regulates the labor market?

How people's choices change when they have more income

The income effect measures

the marginal product of labor multiplied by the price of that product.

The marginal revenue product equals

marginal revenue product of labor.

Understanding labor demand is all about understanding the

production possibilities frontier

Wages are shaped by supply and demand and labor market institutions. Which is NOT another factor that helps shape wages?

They decrease labor supply.

What is an effect of licensing requirements on the workforce?

supply; highest wage

As a worker, you are on the _____ side, looking to sell your labor for the _____ you can get.

sell your labor for the highest wage

As a worker, you are on the supply side, looking to _____ you can get.

there is a prevailing market wage you have to pay to hire workers.

As an employer in a perfectly competitive labor market, you'll find that

more than

Comparisons of people with similar IQ scores show that people who went to college earn _____ people who didn't.

disability

Complex analyses compare wages between groups, taking into account these factors EXCLUDING:

greater; increase

Due to the substitution effect, higher wages provide a _____ incentive to work. Higher wages lead workers to _____ the demand for leisure due to the income effect.

to signal otherwise unobservable traits about you

During job interviews, why do potential employers often ask what you like to do in your free time?

government bureacrats

Each group is characterized by a "winner-take-all" market, EXCEPT:

diminishing marginal product

Employers demand a greater quantity of labor when the wage is lower. This reflects _____.

veteran status

Employers want to hire more productive workers, so they are willing to pay a higher wage to people with these characteristics EXCLUDING:

leisure

Every hour that you spend working is one hour less you have available for other things besides paid work. Economists call this time

valued

Highly paid workers are also more likely to feel _____, inspiring them to give back to their employer in the form of greater effort.

You describe the labor market as perfectly competitive.

How do you describe a labor market in which many employers are competing to hire from a large pool of qualified workers with similar skills?

the effort required to succeed comes with a lower opportunity cost.

If you love what you do, you'll be more likely to succeed in your career because

the market forces determine the wage.

In a perfectly competitive labor market,

Intrinsic motivation

Millions of people donate blood to local blood banks, typically not for the free doughnut, but because they believe it's the right thing to do. This is an example of:

the undesirable aspects of the job

Morticians and cosmetologists require similar training; a vocational degree is required for both. What is the reason why morticians are paid so much more?

working nights is typically less desirable

Nurses who work nights earn more than those who work during the day because:

80

On average, a woman working full time, for the duration of 2017 made approximately _____ % of what a man working full time throughout 2017 made.

10 to 20% more

On average, unionized workers earn _____ than a comparable worker in a non-union job.

offering a pay-for-performance plan.

One way to motivate workers is to pay an efficiency wage and threaten to fire them if they get caught slacking off, but there are other ways to motivate workers, including:

more than

People who grew up near a college—and hence were more likely to attend—earn _____ similar folks who grew up farther away from a college and were less likely to attend.

$6,000-$10,000; 0.1

Recent research suggests that workers demand somewhere between _____ in extra income to compensate for a _____ percentage point increase in the probability of a fatal work injury.

general

Skills that would be useful to many different employers are known as _____ skills.

discrimination is part of the reason behind some of women's occupational choices.

Some economists will argue that discrimination is actually bigger than what has been measured because:

the benefit of not working is higher than the wage.

Students, homemakers, and retirees decide not to work because

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

The Rational Rule for Workers tells you to work more hours

quantity of labor supplied

The _____ is fairly unresponsive to price changes when the labor supply is inelastic.

subsitution effect

The _____ measures how people respond to a change in relative price.

a generous commission that attracts those seeking a steady guaranteed income.

The benefits you offer will impact the type of workers you'll attract. All of these are examples of this, EXCEPT:

winner-take-all

The combination of these two facts—people like to hear the best and technology makes it easy for the best to reach millions of customers—means that the music industry becomes a _____ market.

instrinsic motivation

The desire to do something for internal reasons, such as the enjoyment and pride you get from doing a good job, is known as:

compensating differential

The difference in wages required to offset the undesirable (or desirable) aspects of the job is known as a(n):

people's demand for the goods and services that workers provide.

The labor market is driven by

earn a wage above the equilibrium wage.

The minimum wage ensures that the working poor:

demanded; supplied

The minimum wage—when it is binding—pushes wages above the equilibrium wage and therefore results in a decrease in the quantity of labor _____ and an increase in the quantity of labor _____.

decrease; increase

The minimum wage—when it is binding—pushes wages above the equilibrium wage and therefore results in a(n) _____ in the quantity of labor demanded and a(n) _____ in the quantity of labor supplied.

the wage

The opportunity cost of being a student, a homemaker, or a retiree is

everything you do when you're not working.

The opportunity cost of working is

the intersection of the supply and demand curves.

The price of a haircut is determined by

promotion and pay raise

There's another, more subtle way to provide incentives to your workers: Offer them a clearly defined career path and combine this with a culture of always promoting your high-performing workers. With this model, the incentive for working is a:

backward-bending curve

What would be the shape of an individual labor supply curve, when the substitution effect dominates at low wages, but the income effect is more important at higher wages?

Incentives can distort effort.

What's a possible drawback with using high-powered incentives?

Monspony

When a firm uses its power as a major buyer to buy labor at lower prices, it is an example of _____ power.

higher

When the characteristics of a job are worse, a(n) _____ wage is required to entice workers into that occupation.

No, he can hire only two cooks to get the maximum profit of $650.

When the owner of a sushi restaurant hires a second cook, customers increase their orders from 70 to 110 orders per week. He pays each cook $500 per week and charges $15 per order. If he adds one more cook, he might get 30 extra orders per week. Should he hire a third cook? Why?

can produce at a larger scale, so you may require more workers and increase your labor demand.

When the price of inputs decline, your company can produce output more cheaply. This explains the scale effect, which is that you

Wage will increase, and fewer jobs will be available.

When young people choose to spend more leisure time playing videogames, what would happen to the labor market for young people?

The rise of robots removes the need to hire high-skilled workers.

Which of the following does NOT explain how higher wages create an incentive for investment in capital?

changes in the supply for your product

Which of the following is NOT a factor that shifts the labor demand curve?

How many hours should you study?

Which of the following is NOT a key labor supply decision?

The productivity gains of each unit of labor

Which of the following is NOT a reason for the market supply curve to slope upwards?

The supply curve represents the selling decisions of businesses.

Which of the following is NOT true about the labor supply and labor demand curves?

The labor market for young people who enjoy playing video games.

Which of the following represents a labor market in which a rising opportunity cost of work results in higher wages and fewer jobs?

following the laws of supply and demand

Which of these is NOT a way in which governments influence the labor market?

how most people view a job attribute

Which would determine whether a job comes with a compensating differential or not?

difficult-to-observe factors

While differences in pay between groups are only partly explained by observable factors, some of the remaining differences may reflect _____, rather than discrimination.

seller; buyer

You are a ____ of your labor in the labor market. And when you manage other workers or start your own business, you'll be a ___ of labor.

diminishing marginal product.

labor demand is downward-sloping because of

cost-benefit principle

you can apply the___ to figure out the right occupation for you.

negotiate for higher wages

A union works toward controlling the supply of labor in order to:

federal government and military.

Although there has been a decline in unions by more than two-thirds from their high point in the 1950s, unions remain quite relevant in many type of jobs EXCEPT:

demand; lowest

Businesses are on the _____ side, looking to hire the best workers they can find at the _____ price possible.

a covered outdoor area for smokers

Each of these benefits is a complement to hard work, EXCEPT:

a signal

Education serves as _____, which is a costly action that a person takes to convey credible information that would otherwise be hard for someone else to verify.

It has desirable attributes.

What is one reason why teachers have lower salaries than people in jobs requiring similar skills?

supply and demand

what determines the market price of a haircut?