ME quiz 11
3 workers who would have been employed at the previous $100 market wage are now unemployed.
(Figure: The Demand for Decorative Stonemasons) Use Figure: The Demand for Decorative Stonemasons. The equilibrium market wage for stonemasons is $100 a day, but a minimum wage of $130 a day for stonemasons is set by the government. As a result: all stonemasons are better off. 3 workers who would have been employed at the previous $100 market wage are now unemployed. 6 workers will now be hired by the firm. construction firms will shut down.
I THINK: will increase.
(Figure: The Value of the Marginal Product Curve for Factory Workers) Use Figure: The Value of the Marginal Product Curve for Factory Workers. The figure shows the value of the marginal product of labor curve per worker (VMPL) along with the wage rate (W), and quantity of workers (Q). If the price of the good increases and everything else stays the same, then the profit-maximizing quantity of labor: will stay the same. cannot be determined. will increase. will decrease.
35
(Table: Employees and Artisanal Carpets) Use Table: Employees and Artisanal Carpets. Suppose that you achieve your dream of opening an artisanal studio specializing in the production of hand-woven carpets. You pay $10 in fixed costs for equipment and $9 per day to each of your artists (employees) who make the carpets. If the industry is perfectly competitive, and the current market price is $1, how many carpets should you produce? 3 25 43 35
the hourly wage rate.
In general, because of the nature of opportunity costs, the price of an extra hour of leisure is: the hourly wage rate. the same as the price of money. the total utility of labor. the marginal utility of labor.
Registered nurses
In which job category do women account for a majority of the labor force yet still earn less than men on average? Registered nurses Installation, maintenance, and repair Chief executives Lawyers
Leisure, hospitality, and trade
In which occupational categories workers least likely to be represented by a union negotiating salaries on their behalf? Manufacturing Healthcare Leisure, hospitality, and trade Government
receive lower salaries than those with higher levels of human capital.
People with lower levels of human capital will tend to: earn salaries based on the marginal cost of their labor. earn salaries higher than their value of the marginal product. receive lower salaries than those with higher levels of human capital. work only in union jobs.
1970s ; productivity ; real wages
Since the ____ , ____ has grown faster than ____ , thus contradicting the simple model of wage determination. 1950s ; productivity ; real wages 2000s ; wages ; productivity 1960s ; productivity ; nominal wages 1970s ; productivity ; real wages
the price of labor falls.
The quantity demanded of labor will increase if: the supply of a factor that labor uses in production decreases. the price of labor falls. the productivity of labor decreases. the price of the product that labor produces decreases.
I THINK: Compensating wage differentials
Which of the following is NOT by itself a cause of labor market inefficiency? Wage discrimination Compensating wage differentials Uncompetitive markets for labor Efficiency wages
the faculty
Which of the following is a factor of production at a university? electricity the faculty lab concentrations to use in experiments Scantron sheets
4
(Table: The Market for Power Tools, Value of the Marginal Product of Labor and Demand) Use Table: The Market for Power Tools, Value of the Marginal Product of Labor and Demand. In the table, the total product of labor is shown for the hourly production of power tools. Assume that the market for power tools is perfectly competitive. If the price of a power tool is $2 and the market wage rate is $100 per hour, the profit-maximizing quantity of labor is _____ workers. 0 2 6 4
$50
(Table: Total Product of Labor at Suzi's Sandwich Shop) Use Table: Total Product of Labor at Suzi's Sandwich Shop. Suzi can sell sandwiches for $10 each. What is the value of the marginal product of the fourth worker? $210 5 sandwiches 21 sandwiches $50
increase by $105.
(Table: Workers and Quinoa Output on Sandy's Farm) Use Table: Workers and Quinoa Output on Sandy's Farm. Sandy is a price-taking farmer who produces quinoa. Assume that the wage rate for workers is $125 and that the price per bushel of quinoa is $10. Suppose that Sandy employs 7 workers. If she reduces employment to 6 workers, her profits will: increase by $20. increase by $105. increase by $90. decrease by $970.
decrease in the supply of other factors that autoworkers use in production.
A decrease in the demand for autoworkers would NOT come about because of a(n): decrease in the productivity of autoworkers. increase in the market wage rate. decrease in the price of cars. decrease in the supply of other factors that autoworkers use in production.
downward sloping; smaller than
Amadeus is an entrepreneur who owns a flower shop. Amadeus's business is booming, and his income is rising. Amadeus's labor supply curve will be _____ if the substitution effect is _____ the income effect. horizontal; equal to vertical; greater than upward sloping; smaller than downward sloping; smaller than
shift leftward if leisure is a normal good.
An increase in wealth will cause the labor supply curve to: slope downward if the substitution effect dominates the income effect. shift leftward if leisure is a normal good. slope upward only if leisure is an inferior good. bend backward if the income effect outweighs the substitution effect of a change in wealth and if leisure is a normal good.
I THINK: Healthcare
In which occupational category is the demand for labor the least competitive? Construction Healthcare Arts, entertainment, and sports Management
An increase in the labor force participation rate
Which of the following would shift the labor supply curve to the right? A decline in the birth rate A reduction in the age at which one is eligible for retirement benefits An increase in the labor force participation rate An increase in household wealth
