Quiz 3
All of the following can cause the demand curve for labor to shift to the right except
an increase in the supply of labor
The quantities of labor employers are willing and able at alternative wage rates is the
demand for labor
If the demand for labor is a derived demand, then the demand for airplane pilots depends on the
desire for airline travel
Any place where factors of production (resouces) are bought and sold is a
factor
Other thing being equal, an increase in the productivity of labor will lead to
higher wages
Able Corp. completes a new plant with a larger workspace and new machinery. The demand for labor will
increase
A market
is any place where goods are bought and sold
The labor-supply curve depicts the quantity of ______ __________at alternative____ ____
labor supplied; wage rates
Ceteris paribus, the willingness and ability to work specific amounts of time at alternative wage rates in a given period of time is
labor supply
The Law of Diminishing Returns states that, ceteris paribus, the marginal physical product of labor declines as..
more labor is employed
A market in which finished goods are exchanged is a
product market
An upward-sloping supply curve of labor illustrates that the
quantity of labor supplied and the wage rate
Consumers_________factors of production (resources) in the ___________market
sell; factor
Which of the following does not affect labor demand?
supply of labor
The marginal revenue of product of labor is
the additional revenue a firm receives from hiring one more worker
A firm's demand for labor is downward sloping because
the marginal physical product of labor decreases as more labor is hired
The opportunity cost of working is the
value of leisure time that must be given up
The quantity demanded of labor depends on the
wage rate
Ceteris paribus, for an upward-sloping supply curve, there is an increase in the quantity of labor supplied when the
wage-rate increases
The demand for labor is a derived demand because
we demand what labor produces and not labor itself