Combo with "Essentials of Economics (Schiller) - Chapter 8" and 1 other
Figure 8.1 Picture In Figure 8.1, at equilibrium, the wage rate is ____ per hour and ____ workers are employed. $12; 68. $12; 40. $16; 68. $16; 96.
$16; 68.
The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Table 8.1 Apple production Picture In Table 8.1, at what is the marginal revenue product of the 2ndapple picker? $6. $10. $24. $40.
$24.
The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Table 8.1 Apple production Picture In Table 8.1, if the equilibrium wage is $24 per day, how many apple pickers will the firm hire? 2. 3. 4. 5.
2.
In Table 8.2, if the price of lemons increases to $10 per basket and the equilibrium wage is $90 per day, how many lemon pickers will the firm hire? 2 3 4 5
3
In Table 8.2, if the price of lemons increases to $11 per basket and the equilibrium wage is $99 per day, how many lemon pickers will the firm hire? 2 3 4 5
3
The opportunity cost of working is the: A) Wage rate. B) Value of leisure time that must be given up. C) Expenses of maintaining a household and maintaining a decent living. D) Amount of consumption that is made possible.
B
Figure 8.4 - Shifts of labor supply and labor demand Answer the indicated question(s) by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market, ceteris paribus. Picture Refer to Figure 8.4. A significant number of immigrants enter the labor market. A B C D
D
In Table 8.1, at what level of use is the marginal physical product of dental chairs zero? A) 1 dental chair. B) 2 dental chairs. C) 3 dental chairs. D) 4 dental chairs.
D
Market demand for labor depends on: A) The number of employers. B) The marginal revenue product of labor in each firm and industry. C) The marginal physical product of workers. D) All of the above.
D
Other things being equal, higher wage rates will: A) Decrease the supply of labor. B) Increase the supply of labor. C) Decrease the demand for labor. D) Decrease the quantity demanded of labor.
D
The demand for factors of production is: A) Derived from the demand for the goods and services the factors produce. B) A function of diminishing marginal productivity. C) A function of the price of the product being produced. D) All of the above.
D
The marginal physical product of labor decreases as more labor is hired because of: A) The law of diminishing marginal utility. C) The decrease in quality of labor. B) A decrease in total output. D) The law of diminishing returns.
D
The quantity demanded of labor depends on the: A) Supply of labor. C) Prevailing rate of interest. B) Marginal cost of output. D) Wage rate.
D
Figure 8.4 - Shifts of labor supply and labor demand Answer the indicated question(s) by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market, ceteris paribus. Picture Refer to Figure 8.4. Working conditions improve in the labor market. A. B. C. D.
D.
Other things being equal, higher wage rates will: Decrease the quantity supplied of labor. Shift the labor supply curve to the right. Shift the labor demand curve to the right. Decrease the quantity demanded of labor.
Decrease the quantity demanded of labor.
The impact on the labor market due to an increase in the minimum wage: Is greater the more media attention the increase receives. Cannot be measured unless the increase is more than $1. Depends on factors such as the size of the increase and the state of the economy. All of the above.
Depends on factors such as the size of the increase and the state of the economy.
The demand for labor is defined as the willingness of: Workers to supply their labor at various wage rates. Employers to hire workers at various wage rates. Buyers to purchase goods are various wage rates. Sellers to bring goods to market at various wage rates.
Employers to hire workers at various wage rates.
Additional workers will be hired as long as the: New worker's marginal revenue product is greater than or equal to their wage. Labor supply curve is backward bending. Wage rate exceeds the new worker's marginal revenue product. Firm is making an economic profit.
New worker's marginal revenue product is greater than or equal to their wage.
The opportunity cost of working is the: Wage rate. Value of leisure time that must be given up. Expense of maintaining a household and maintaining a decent living. Amount of consumption that is made possible.
Value of leisure time that must be given up.
The theory of efficiency wages explains why: unions strike for higher wages it might be inefficient to pay workers the competitive equilibrium wage the actual umemployment rate varies around the long-run equilibrium unemployment rate it is efficient for workers to work hard for their wages
it might be inefficient to pay workers the competitive equilibrium wage
effective collective bargaining will: increase the demand for union workers raise the wage of union workers decrease the supply of labour in the non-unionised parts of the economy none of the above
raise the wage of union workers
In Figure 8.1, the equilibrium wage rate is: A) $8 per hour. B) $10 per hour. C) $12 per hour. D) $14 per hour.
B
Refer to Figure 8.2. A minimum wage of W2 will result in a surplus of ______ workers 1950 1350 1050 900
1050
Figure 8.2 W1 = $4.00 W2 = $5.65 Picture Refer to Figure 8.2. A minimum wage of $5.65 will result in a surplus of ____ workers. 1950 1350. 1050. 900.
1050.
The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Table 8.1 Apple production Picture In Table 8.1, what is the marginal physical product of the 5thapple picker? 22 baskets per day. 12 baskets per day. 3 baskets per day. 2 baskets per day.
3 baskets per day.
The following table shows how lemon output changes as additional lemon pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of lemons is $8 per basket. Table 8.2 Lemon production Picture In Table 8.2, what is the marginal physical product of the 5thlemon picker? 3 baskets per day. 5 baskets per day. 24 baskets per day. 38 baskets per day.
3 baskets per day.
The following table shows how lemon output changes as additional lemon pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of lemons is $8 per basket. Table 8.2 Lemon production Picture In Table 8.2, if the price of lemons increases to $10 per basket and the equilibrium wage is $90 per day, how many lemon pickers will the firm hire? 2. 3. 4. 5.
3.
In Table 8.2, if the price of lemons increases to $12 per basket and the equilibrium wage is $72 per day, how many lemon pickers will the firm hire? 2 3 4 5
4
The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Table 8.1 Apple production Picture In Table 8.1, if the equilibrium wage is $16 per day, how many apple pickers will the firm hire? 2. 3. 4. 5.
4.
The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Table 8.1 Apple production Picture In Table 8.1, at what is the marginal physical product of the 2nd apple picker? 2 baskets per day. 6 baskets per day. 10 baskets per day. 24 baskets per day.
6 baskets per day.
Figure 8.1 Picture In Figure 8.1, at equilibrium, ____ workers are employed and ____ workers are unemployed. 48; 28. 68; 28. 48; 0. 68; 0.
68; 0.
Refer to Figure 8.2. The number of workers employed in this market at a wage rate of W2 is: 1950 workers 1350 workers 1050 workers 900 workers
900 workers
Figure 8.2 W1 = $4.00 W2 = $5.65 Picture Refer to Figure 8.2. The number of workers employed in this market at a wage rate of $5.65 is: 1950 workers. 1350 workers. 1050 workers. 900 workers.
900 workers.
An upward-sloping supply curve of labor reflects the: A) Increasing opportunity cost of labor. B) Increasing marginal utility of income as a person works more hours. C) Increase in quantity supplied as prices fall. D) All of the above.
A
In Figure 8.1, unemployed labor at the equilibrium wage is equal to: A) Zero workers. B) 10 workers. C) 28 workers. D) 34 workers.
A
In Table 8.1, what is the marginal physical product of the second dental chair? A) 15. B) 30. C) 45. D) 50.
A
The demand for labor is downward sloping because of: A) Diminishing marginal returns to labor. C) Falling MC. B) Rising MPP. D) Rising price.
A
The marginal revenue product is significant because it establishes: A) An upper limit to the wage rate an employer is willing and able to pay. B) A lower limit to profit on the sale of a unit of output. C) An upper limit to the productivity of an employee. D) A lower limit to the wage rate demands of laborers.
A
In table 8.2, as more lemon pickers are hired, the firm experiences: A. diminishing returns B. increasing marginal physical product C. Increasing marginal revenue product D. Increasing laziness on the part of workers
A. diminishing returns
If the MPP of an additional unit of labor is 2 units per hour, product price is constant at $9 per unit, and the wage rate is $20 per hour, then the: Employer should increase wages and hire fewer workers. Additional unit of labor should not be employed because it costs more than it is worth. Employer should increase wages and hire more workers. Additional unit of labor should be employed at the current wage.
Additional unit of labor should not be employed because it costs more than it is worth.
The quantity of labor demanded: Occurs in the factor markets. Depends on the expected sales and output for the firm. Is inversely related to the wage rate. All of the above.
All of the above.
To maintain above-equilibrium wages, unions can use which of the following forms of exclusion? Required union membership. Required apprenticeship programs. Employment agreements negotiated with employers. All of the above.
All of the above.
Unions influence a labor market by: Attaining above-equilibrium wages for union members. Excluding some workers from the unionized market. Increasing the labor supply curve in the nonunion market. All of the above.
All of the above.
Which of the following is a reason why workers typically require higher wages in order to work additional hours? The increasing opportunity cost of labor. The increasing value of leisure time forgone. The diminishing marginal utility of additional income. All of the above.
All of the above.
If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $12 per unit, and the wage rate is $30 per hour, then: An additional unit of labor should not be employed because it costs more than it is worth. An additional unit of labor should be employed. The employer should raise wages and hire additional workers. Product price must be decreased if profits are to be made.
An additional unit of labor should be employed.
A rightward shift in the MRP of labor curve could be caused by: A decrease in product price. An increase in the productivity of labor. A decrease in wages. All of the above.
An increase in the productivity of labor.
The marginal revenue product is significant because it establishes: An upper limit to the wage rate an employer is willing and able to pay. A lower limit to profit on the sale of a unit of output. An upper limit to the productivity of an employee. A lower limit to the wage rate demands of laborers.
An upper limit to the wage rate an employer is willing and able to pay.
The law of diminishing returns states that, ceteris paribus, the MPP of labor declines as: Additional land, raw materials, and other factors of production are employed. The wage rate falls. The product price declines. As more labor is employed.
As more labor is employed.
In Figure 8.1, a minimum wage of $12 will result in: A) A shortage of 10 workers. C) A shortage of 18 hours. B) A surplus of 18 workers. D) A surplus of 8 workers.
B
A firm should continue to hire workers until: A) The MRP is equal to demand. B) The MPP is equal to the number of workers hired. C) The MRP is equal to the market wage rate. D) The MRP is equal to zero.
C
Ceteris paribus, an increase in MRP is most likely to cause: A) A decrease in MPP at any given level of employment. B) Some reduction in employment of labor. C) Additional labor to be hired. D) A decrease in output at any given level of employment.
C
If the government decides to raise the minimum wage, ceteris paribus: A) All workers are better off. B) All workers are worse off. C) Some workers are better off and some are worse off. D) Workers are not affected by a minimum wage increase, only by a decrease.
C
In Table 8.1, what is the marginal revenue product of the third dental chair? A) $5. B) $50. C) $125. D) $375.
C
The labor-supply curve of an individual reveals his or her: A) Decision about how to allocate free time and purchases. B) Market wage rate. C) Decision about how to allocate scarce time between labor and leisure. D) Equilibrium wage.
C
The market equilibrium wage occurs where: A) Demand intersects with marginal cost. B) Marginal physical product intersects with marginal revenue product. C) Market demand for labor intersects the market supply of labor. D) All of the above.
C
The term labor supply can be defined as: A) The number of individuals who are currently employed for the market wage rate. B) The ability of individuals to work for specified amounts of time at alternative wages in a given time period. C) The number of individuals who are willing and able to work specific amounts of time at alternative wage rates in a given period of time. D) The willingness of individuals to work certain amounts of time at different wage rates in a given time period.
C
Figure 8.4 - Shifts of labor supply and labor demand Answer the indicated question(s) by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market, ceteris paribus. Picture Refer to Figure 8.4. Union members go on strike. A. B. C. D.
C.
Which of the following statements is correct about min wages? A. min wages are predominant cause of unemployment in the economy B. Min wages do not cause unemployment C. Min wages have an important effect on certain groups with particularly high unemployment rate D. min wages are binding in every labour market equally
C. Min wages have an important effect on certain groups with particularly high unemployment rate
The quantity of labor demanded: Depends on the quantity of labor supplied. Increases as the wage rate decreases. Is upward sloping. All of the above.
Increases as the wage rate decreases.
One HEADLINE article in the text is titled "Hundreds Line Up for Wal-Mart Distribution Center Positions." As the wage rate rises, the quantity of labor supplied _______ and the quantity of labor demanded _______. Increases; decreases. Increases; increases. Decreases; decreases. Decreases; increases.
Increases; decreases.
In Figure 8.2, at a wage of W2 there is a: surplus of labor equal to 450 workers Surplus of labor equal to workers Shortage of labor equal to workers Shortage of labor equal to workers
Surplus of labor equal to workers
Figure 8.3 Picture In Figure 8.3, for the 1stthrough the 6thworker: MRP is greater than or equal to the equilibrium wage rate and these workers will be hired. MRP is less than the equilibrium wage rate and these workers will not be hired. MPP is less than the equilibrium wage rate and these workers will not be hired. The equilibrium wage rate is too high and the firm does not accept the wage.
MRP is greater than or equal to the equilibrium wage rate and these workers will be hired.
A firm should continue to hire additional workers as long as the: MRP is less than the market wage rate. MPP is greater than the market wage rate. MPP is equal to the market wage rate. MRP is greater than the market wage rate.
MRP is greater than the market wage rate.
Figure 8.3 Picture In Figure 8.3, for the 7ththrough the 10thworker: MRP is greater than or equal to the equilibrium wage rate and these workers will be hired. MRP is less than the equilibrium wage rate and these workers will not be hired. MPP is greater than the equilibrium wage rate and these workers will be hired. The equilibrium wage rate is too high and the firm does not accept the wage.
MRP is less than the equilibrium wage rate and these workers will not be hired.
As more workers are hired, ceteris paribus: The demand curve for labor shifts to the right. Marginal physical product of each worker falls. Marginal revenue product of each worker rises. All of the above.
Marginal physical product of each worker falls.
The demand for labor is downward sloping because of: Diminishing marginal returns to labor. Rising MPP. Falling MC. Rising price.
NOT** Rising price.
One HEADLINE article in the text reports that the President of the U.S. would earn up to $58 million, if his salary were based on his: Marginal cost. Marginal physical product. Net worth. Marginal revenue product.
NOT*** Marginal physical product.
One HEADLINE article in the text reports that the President of the U.S. would earn up to $58 million, if his salary were based on his: Marginal cost. Marginal physical product. Net worth. Marginal revenue product.
NOT*** Net worth.
The determinants of the market demand for labor include: Marginal physical productivity. Individual preferences. Income and wealth. All of the above.
NOT***Income and wealth.
An increase in the equilibrium price in the product market results in a: Decrease in the quantity of labor hired. Rightward shift in the MPP curve. Rightward shift in the MRP curve. Reduction in wages.
Rightward shift in the MRP curve.
The unemployment rate is never zero because: Some wages are always above the market equilibrium level there will always be some people who choose not to work of the presence of discouraged workers of max wages law
Some wages are always above the market equilibrium level
Which of the following is the correct formula for calculating the marginal physical product of labor? The change in total output divided by the change in quantity of labor. The percentage change in total output divided by the percentage change in quantity of labor. Total output divided by the quantity of labor. MRP times price.
The change in total output divided by the change in quantity of labor.
If the MPP of the last worker hired is 4 units per hour, product price is constant at $3 per unit, and the wage rate is $15 per hour, then: The last worker hired is profitable for the firm. The employer should raise wages and hire more workers. The last worker hired should not be employed because she costs more than she is worth. Product price must be decreased if profits are to be made.
The last worker hired should not be employed because she costs more than she is worth.
A higher wage rate causes: A shift in an individual's labor supply curve. A shift in the derived demand for labor. A movement down the MRP curve. The opportunity cost of leisure to increase.
The opportunity cost of leisure to increase.
The supply of labor refers to: The willingness of employers to hire workers. A wage that employers are willing to pay and workers are willing to accept. The number of people who want jobs. The quantities of labor supplied at alternative wage rates.
The quantities of labor supplied at alternative wage rates.
The opportunity wage is: The wage in the next best available alternative job. The opportunity cost of hiring one worker instead of another worker. The intersection of the demand for labor and the supply of labor. All of the above.
The wage in the next best available alternative job.
Which of the following is true about the equilibrium market wage? All workers are satisfied with the wage. All employers are satisfied with the wage. There is no unemployment at this equilibrium wage. All of the above.
There is no unemployment at this equilibrium wage.
In graph 9-1, without min wage law, the equilibrium market wage is: W0 and the equilibrium market quantity of labour of labour hired is L0 W0 and the equilibrium market quantity of labour of labour hired is L1 W1 and the equilibrium market quantity of labour of labour hired is L1 W1 and the equilibrium market quantity of labour of labour hired is L1 W1 and the equilibrium market quantity of labour of labour hired is L0 W1 and the equilibrium market quantity of labour of labour hired is L2
W0 and the equilibrium market quantity of labour of labour hired is L1
In Figure 8.2, the equilibrium wage rate is______ and the number of employed is _____. W1: 900 W1: 1350 W2: 900 W2: 1350
W1: 1350
In Figure 8.2, the equilibrium wage rate is______ and the number of unemployed workers is _____. W1:0 W1: 1350 W2: 0 W2: 1350
W1:0
The quantity demanded of labor depends on the: Supply of labor. Marginal cost of output. Prevailing rate of interest. Wage rate.
Wage rate.
Ceteris paribus, if the market supply curve for labor shifts to the left, equilibrium wages: Will fall but equilibrium employment will rise. Will rise but equilibrium employment will fall. And employment will both fall. And employment will both rise.
Will rise but equilibrium employment will fall.
A union is: the decision of 1 firm to merge with another an employee bargaining association limited to professional sports a group of employers who band together for the purpose of bargaining with employees a group of employer who band together for the purpose of bargaining with employees a worker association that bargains with employers over wages and working condition.
a worker association that bargains with employers over wages and working condition.