Mico-Econ Exam 3
Which of the following would be a human capital investment?
.On the job training programs, Health care programs, and Formal education
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be
.less than that in a competitive labor market
.If the labor market shown in Exhibit 7 is a monopsony, the wage rate and number of workers employed will be determined at point:
B
.If the labor market shown in Exhibit 7 is competitive, the wage rate and number of workers employed will be determined at point
F
If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the:
MRP of the U.S. workers will be higher than the MRP of the workers in the lesser-developed country.
Which of the following type of firm is not a price taker in the market in which the firm buys its inputs?
Monopsony
Which of the following statements concerning the supply of labor is true?
The typical labor supply curve is upward sloping.
A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is
derived demand
Featherbedding allows unions to increase wages by
increasing firms' demand for labor
An increase in the demand for a product will shift the demand for labor used to produce the product:
rightward
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
shift in labor supply curve leftward.
A monopsony is a
single buyer
The optimal hiring rule is to employ labor up to the point where
wage = MRP
Alan Jones owns a company that sells life insurance. When he employs 10 salespersons his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000. The marginal revenue product of the 11th salesperson is
$10,000
Which of the following statements is true?
Derived demand for labor depends on the demand for the product labor produces. Unions can either increase demand or decrease the supply of labor.Investment in human capital is expected to increase the demand for those workers.
If product price increases, then
MRP will increase
Since the demand for labor depends on the demand for the product labor produces, the demand for labor is called:
derived demand
An individual firm in a competitive labor market faces a(n)
horizontal labor supply curve
A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must
increase the factor price to hire more
If the wage rate is fixed at a certain level, the
labor supply curve is horizontal
Compared to a competitive input market, a monopsonist will hire
less and pay a lower input price.
A firm's demand curve for labor coincides with the
marginal revenue product curve
One reason the supply of carpenters is greater than the supply of physicians is because
of differences in human capital
For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the
price of the firm's product
.For a perfectly competitive firm, marginal revenue product is equal to
price times marginal product
If the price of labor falls, we can expect
quantity demanded of labor will increase
Marginal revenue product is defined as the extra
revenue earned by hiring one more unit of resource
The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal
revenue product.
The marginal cost of labor for a perfectly competitive firm is given by
the market wage rate
Other things equal, assume consumer demand for children's toys increases. The result is a (an)
rightward shift in the market demand for labor curve in the toy industry. Increase in the marginal revenue product of firms in the toy industry. Increase in derived demand for workers in the toy industry.
