Economics Ch. 11
Marginal revenue product is measured by:
MP ´ price.
If product price decreases, then:
MRP will decrease.
If a product's price increases, then its:
MRP will increase.
According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
The quantity of labor demanded by profit-maximizing firms will decline.
The marginal factor cost for a monopsonist is:
above the market wage rate.
A union can influence the equilibrium wage rate by:
collective bargaining. featherbedding. lobbying for legislation to reduce immigration.
A firm will employ an additional unit of labor as long as the employment of labor adds more to the firm's revenue than it does to the firm's:
cost.
The demand for labor is:
derived demand.
A union can influence the demand for labor by:
effective advertising that convinces customers to buy the "union label."
A monopsony will:
employ a quantity of labor where the marginal revenue product equals the marginal factor cost.
A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as:
featherbedding.
A worker's accumulated investment in education, training, experience, and health is called:
human capital.
Featherbedding allows unions to increase wages by:
increasing firms' demand for labor.
An advance in technology which increases labor productivity will shift the:
labor demand curve to the right.
If the wage rate is fixed at a certain level, the:
labor supply curve is horizontal.
A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:
less than $150 per day.
A firm's demand curve for labor coincides with the:
marginal revenue product curve.
The demand for labor curve is identical to the:
marginal revenue product curve.
Firms should hire additional units of a resource as long as the:
marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
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
A monopoly is a sole ____, and a monopsonist is a sole ____.
seller in a product market; buyer in a labor market
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 marginal revenue product of a resource is:
the marginal product of the resource multiplied by the price of the product it helps to produce.
If a town has a monopsony, this means:
there is only one employer.
If the wage rate is fixed at a certain level, the:
total wage cost curve is a straight upward sloping line.
