Macro

Assume that the going wage for a worker at a competitive firm is $50 a day. If the marginal revenue product for the sixth worker is $45 a day, the:

firm should hire fewer than six workers

The "substitution effect" for labor supply states that people work:

more as wages rise because their ability to purchase goods increases

The market labor supply curve is:

negatively sloped.

Free health insurance offered by an employer is referred to as a(n):

nonwage benefit

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal:

revenue equals marginal cost.

You are willing to work 30 hours per week at your standard wages. You would be willing to work an additional 10 hours each week if you could get an additional $5 per hour. This information reflects your:

supply of labor.

When people choose leisure over work as wages rise, they are indicating that:

the income effect is stronger that the substitution effect

If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor can be described as:

the marginal physical product of labor.

In a Labor Market, employers represent the:

Demand.

Collective bargaining:

consists of negotiations between unions and management

We assume that when a firm hires additional workers, the marginal physical product of labor will:

decrease because each worker now has less capital and other resources to work with.

You have recently earned an hourly pay raise. As your wages increase, the opportunity cost of going to the beach rather than working:

decreases.

The substitution effect means that:

leisure and work are perfectly substitutable.

Nonwork activities are known in economics as:

leisure.

If Tamara is given a $3-per-hour pay increase, and in response she decides to work more hours, then:

Tamara's labor supply curve is upward sloping.

The income effect means that:

if wages increase, hours of work decrease.

In competitive labor markets, we assume that:

information in the industry is widely available and accurate.