ECON

If a chair can be sold for $20 and it takes a worker two hours to make a chair, the marginal revenue product of this worker is

$10 per hour.

As marginal physical product diminishes, marginal revenue product

Also diminishes.

Other things being equal, which of the following would increase the market demand for labor?

An increase in the marginal productivity of labor.

The marginal revenue product establishes

An upper limit to the wage rate an employer is willing and able to pay.

The market supply curve for labor curve is upward-sloping because

As the wage rises, most workers are willing to work more hours.

Campbell loves to work. He does not receive any enjoyment from leisure time. The last dollar that he earns each year means just as much to him as the first dollar. Which of the following best describes the shape of Campbell's labor supply curve?

Horizontal

If we move to the right along the upward-sloping labor supply curve, we observe that the cost of labor

Increases due to the increasing opportunity cost.

Workers typically require higher wages in order to work additional hours because of the Multiple Choice

Increasing opportunity cost of labor.

The law of diminishing returns states that, ceteris paribus, the

MPP of labor declines as more labor is employed.

The number of hours that a worker is willing to work is determined by the trade-off between the increasing

Marginal utility of leisure and the decreasing marginal utility of income.

When the MPP of labor is zero, ceteris paribus,

No further increases in output can be achieved by using additional units of labor.

If there is an increase in the number of workers who want to work as accountants, there will be a

Rightward shift of the labor supply curve.

Because of the law of diminishing returns, as additional workers are hired, total output

Rises at a diminishing rate initially and eventually falls.

If the number of available workers of a particular type increases, which of the following shifts should occur in the labor market for the particular type of labor?

Supply of labor should shift to the right.

If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then

The additional unit of labor should be employed.

If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then

The additional unit of labor should not be employed because it costs more than it is worth.

The marginal physical product of labor is equal to

The change in total output divided by the change in quantity of labor.

The wage rate is

The payment for labor.

Which of the following is true about the equilibrium market wage?

There is no unemployment in the market at the equilibrium wage.

If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?

Demand for labor should shift to the left.

As labor productivity increases, which of the following shifts in the labor market should occur?

Demand for labor should shift to the right.

If consumers decide to buy fewer strawberries, then the

Demand for strawberry pickers will fall.

Marginal physical product diminishes as additional workers are hired because

Each worker has an increasingly smaller amount of other factors with which to work.

If the demand for alarm clocks decreases, the effect on the alarm clock job market will be to

Decrease the demand for labor and reduce equilibrium wages.

As an individual earns additional income, the marginal utility of income tends to

Decrease.