chapter 11
Based on the table, the value for A is:
a) 27
Based on the graph, the substitution edict is shown by segment:
a) AB
Theoretically, how would an individual working at minimum wage react to an increase in the minimum wage, ceteris paribus?
a) The individual would increase working hours
In competitive labor markets, the going wage is:
a) determined by the intersection of the market supply and market demand curves for labor
Teachers salaries are 70% of the cost of educating a sixth grader. The demand for teachers is most likely to be:
a) elastic
Derived demand suggest that:
a) labor demand is derived from demand for the product it produces
The market labor supply cure is:
a) positively sloped
The marginal physical product of labor is:
a) the change in output a firm receives from hiring an additional worker
Gary Becker concludes that the cost of wage differentials and market competition will drive discrimination down to zero in the long run.
a) true
If there is one hospital in a small town, it is likely to be a monopsony in the market for nurses.
a) true
Marginal product is defined as the marginal product times the product price.
a) true
The "substitution effect" for labor supply states that people work more as wages rise because the opportunity cost of leisure also rises
a) true
The elasticity of demand for labor measures how responsive the quantity of labor demanded is to changes in wages.
a) true
The higher the price elasticity of demand for a product, the greater is the elasticity of demand for labor.
a) true
The substitution effect occurs when wages rise because people tend to substitute more work in place of leisure.
a) true
The short-run demand curve for plant workers in a large petrochemical plant would be:
b) very inelastic
Based on the table, the marginal physical product of the fifth worker is:
c) 12
If wages increase at a 5% rate and the quantity demanded of labor decreases by 10% then the elasticity of demand for labor is:
c) 2
Based on the table, what is the value of D?
c) 44
Based on the table, if the wage rate is $25, how may workers should this firm hire?
c) 5 workers
Based on the table, the value for C is:
c) 96
Based on the graph, the income effect is shown by segment:
c) bc.
Gary Becker's theory of economic discrimination argues that:
c) employers who discriminate against women will lose profit opportunities
Which piece of legislation is also known as the National Labor Relations Act?
c) the Wagner Act
After World War II and through the Korean War, union membership constituted _______ of American workers.
D) 33%
Factors that affect the elasticity of demand for labor include all of these EXCEPT:
D) demographics
Which of these is a benefit of union membership for an employee?
b) Management's authority is limited by the union contract
The "income effect" for labor supply states that people work more as wages rise because the opportunity cost of leisure falls.
b) false
The insider-outsider theory of segmented labor markets states that wage discrimination is a factor of changing "tastes" for discrimination.
b) false
Non-work-related activities are known in economics as:
b) leisure
