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- 1. Open EndedThe demand for labor
- 2. Open EndedWhich of the following statements is true about the demand for labor?
- 3. Open EndedThe firm's labor demand curve is
- 4. Open EndedWhich of the following is FALSE? -The worker's marginal revenue product is determined both by how much she adds to the firm's output and by the selling price of the product. -The wage rate in a perfectly competitive labor market is the firm's marginal factor cost of labor. -A higher wage rate reduces the worker's opportunity cost of leisure. -The demand for labor is derived from the demand for the final product.
- 5. Open EndedThe demand for labor increases when
- 6. Open EndedIn which sector of the economy has union membership been increasing?
- 7. Open EndedThe demand for labor increases
- 8. Open EndedOther things equal, an increase in the productivity of labor will lead to
- 9. Open EndedThe marginal physical product of labor
- 10. Open EndedThe marginal revenue product of the firm
- 11. Open EndedThe marginal factor cost of labor for a firm facing a perfectly elastic supply of labor is
- 12. Open EndedIn a perfectly competitive situation, the firm will hire workers until
- 13. Open EndedThe firm's demand for labor is the same as its
- 14. Open EndedWhat assertion have economists Freeman and Medoff made about the effect of unions on the U.S. economy?
- 15. Open EndedTo the extent that unions are effective at restricting the supply of labor,
- 16. Open EndedWhich one of the following is NOT a major determinant of income distribution in the U.S.? -Marginal productivity. -Political party affiliation. -Inheritance. -Discrimination.
- 17. Open EndedThe equilibrium wage rate is the wage at which -the quantity of labor supplied equals the quantity of labor demanded. -there is no shortage of labor. -there is no surplus of labor. -all of the above.
- 18. Open EndedWhat information is needed in order to calculate the marginal revenue product?
- 19. Open EndedHow is a labor market affected by the imposition of a minimum wage above the equilibrium wage?
- 20. Open EndedIn perfect competition, the firm maximizes profits by hiring the quantity of labor at which
- 21. Open EndedSuppose a firm sells its product for $10 per unit. When 22 workers are hired, total output is 172 units. When 23 workers are hired, total output is 182 units. What is the marginal revenue product of the 23rd worker?
- 22. Open EndedHow is the labor market equilibrium affected when there is an increase in the demand for labor?
- 23. Open EndedWhat determines the slope of the labor supply curve?
- 24. Open EndedThe demand curve for labor is the firm's
- 25. Open EndedAn increase in the demand for a good produced by a competitive industry will cause
- 26. Open EndedYour earnings in the labor market are
- 27. Open EndedIn competitive markets, the equilibrium wage is
- 28. Open EndedA firm facing a perfectly competitive labor market will hire workers up to the point at which
- 29. Open EndedWhich of the following was NOT a goal of early unions in the U.S.? -To end child labor. -To shorten the length of the workday. -To improve wages and working conditions. -To establish a minimum wage.
- 30. Open EndedWho founded the American Federation of Labor?
- 31. Open EndedWhich of the following is FALSE? -Your investment in human capital is an important determinant of your productivity and therefore is an important determinant of your earnings. -A minimum wage imposed above the equilibrium wage will generate unemployment. -Strike activity has increased in the U.S. over recent decades as union membership has been on the increase. -Unions seek to restrict the supply of labor so as to increase wages for members.
- 32. Open EndedWhich of the following is TRUE? -An increase in the productivity of IT professionals will decrease the demand for their services. -A increase in the price of handcrafted furniture will decrease the demand for workers who make the furniture. -The demand for labor is derived from demand for the final product. -The slope of the labor supply curve is determined by the level of human capital investment workers have undertaken.
- 33. Open EndedIf the marginal revenue product of labor is less than the wage rate, the perfectly competitive firm will
- 34. Open EndedWhich of the following will not shift the supply of labor? -Changes that make leisure time relatively more valuable to workers. -Changes in working conditions. -An increase in the wage rate. -A significant increase in the relative wages paid in a related industry.
- 35. Open EndedAll of the following can cause the demand curve for labor to shift to the right except -an increase in the productivity of labor. -an increase in the supply of labor. -an increase in the demand for the final product. -an increase in the price of the final product.
- 36. Open EndedIf a minimum wage is imposed above the equilibrium wage,
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