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Use the following to answer question(s) : Wage Determination in Perfect Competition Use the following to answer question(s) : Wage Determination in Perfect Competition -(Exhibit: Wage Determination in Perfect Competition) In Panel (a) : A) wages in the market are determined by the intersection of demand and supply curves. B) the wage is determined where MRP of labor is equal to the MFC of labor. C) S₁ is the MFC of labor. D) D₁ is the demand for leisure. -(Exhibit: Wage Determination in Perfect Competition) In Panel (a) :


A) wages in the market are determined by the intersection of demand and supply curves.
B) the wage is determined where MRP of labor is equal to the MFC of labor.
C) S₁ is the MFC of labor.
D) D₁ is the demand for leisure.

E) A) and B)
F) A) and C)

Correct Answer

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A higher wage has an income effect.

A) True
B) False

Correct Answer

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Use the following to answer question(s) : Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market Use the following to answer question(s) : Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market -(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price (wage) of bricklayers is $100, the firm's supply curve for bricklayers will be: A) a vertical line at $100. B) the same as the MRPBRICKLAYERS. C) given by the labor market to the firm hiring bricklayers. D) the same as its MRPBRICKLAYERS. -(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price (wage) of bricklayers is $100, the firm's supply curve for bricklayers will be:


A) a vertical line at $100.
B) the same as the MRPBRICKLAYERS.
C) given by the labor market to the firm hiring bricklayers.
D) the same as its MRPBRICKLAYERS.

E) A) and B)
F) None of the above

Correct Answer

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For a resource in a perfectly competitive market, marginal revenue product is equal to the product price.

A) True
B) False

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Which of the following statements is false?


A) It is likely that supply curves for labor in individual labor markets are upward sloping.
B) As wages in one industry rise relative to wages in other industries, workers shift their labor to the relatively high-wage one.
C) The mobility of labor between competitive labor markets is likely to prevent the total number of hours worked from falling as the wage rate increases.
D) Workers in one industry seldom pay attention to the wage rate(s) in other industries or labor markets.

E) B) and D)
F) A) and B)

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In order to maximize profits, a firm will produce at any level of output where MRP = MP × MR.

A) True
B) False

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In perfect competition:


A) the supply curve of labor to the firm is a horizontal line.
B) MFCL is greater than the price of labor.
C) MFCL is less than the price of labor.
D) MRPL equals the price of the good.

E) A) and B)
F) A) and C)

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Use the following to answer question(s) : Wage Determination in Perfect Competition Use the following to answer question(s) : Wage Determination in Perfect Competition -(Exhibit: Wage Determination in Perfect Competition) Which of the following statements is true? A) The firm's MFC of labor is equal to the price of the firm's output. B) Total employment is equal to L₁, as shown in Panel (a) . C) The individual firm is a wage setter. D) The firm will hire L₁ units of labor, as shown in Panel (a) . -(Exhibit: Wage Determination in Perfect Competition) Which of the following statements is true?


A) The firm's MFC of labor is equal to the price of the firm's output.
B) Total employment is equal to L₁, as shown in Panel (a) .
C) The individual firm is a wage setter.
D) The firm will hire L₁ units of labor, as shown in Panel (a) .

E) A) and B)
F) A) and D)

Correct Answer

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Which of the following statements is true?


A) MFC = change in total cost/ change in the quantity of a factor.
B) MRPL = MPL x (P) , where P is the price of labor.
C) MFC = the change in the quantity of a factor times the change in the price of the factor.
D) MRPL = MC of the output.

E) A) and D)
F) A) and C)

Correct Answer

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A determinant of the demand for a factor of production is the:


A) price of the factor.
B) marginal cost of the factor.
C) quantity of the factor supplied.
D) price of the product made with the factor.

E) All of the above
F) A) and C)

Correct Answer

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A _______ wage will _______ the _______ leisure.


A) lower; increase; price of
B) higher; necessarily decrease; amount of time spent on
C) higher; increase; price of
D) lower; not affect; amount of time spent on

E) A) and B)
F) None of the above

Correct Answer

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If MFCL > MRPL, the firm should hire more labor.

A) True
B) False

Correct Answer

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Factor demand is said to be a derived demand because it depends on product demand.

A) True
B) False

Correct Answer

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Use the following to answer question(s) : The Minimum Wage Use the following to answer question(s) : The Minimum Wage -(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not sufficient and a minimum wage is established at Wm, which is a wage _______ , that means that _______ workers will now be hired. A) ceiling; L₂ B) floor; L₁ C) floor; L₂ D) ceiling; L₃ -(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not "sufficient" and a minimum wage is established at Wm, which is a wage _______ , that means that _______ workers will now be hired.


A) ceiling; L₂
B) floor; L₁
C) floor; L₂
D) ceiling; L₃

E) A) and D)
F) A) and C)

Correct Answer

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Use the following to answer question(s) : Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market Use the following to answer question(s) : Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market -(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price for bricks laid in the wall by a bricklayer is $.10 a brick, the marginal product of the second bricklayer is _______ bricks. A) 1,500 B) 1,400 C) 1,300 D) 1,200 -(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the price for "bricks laid in the wall" by a bricklayer is $.10 a brick, the marginal product of the second bricklayer is _______ bricks.


A) 1,500
B) 1,400
C) 1,300
D) 1,200

E) A) and B)
F) A) and C)

Correct Answer

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Use the following to answer question(s) : The Minimum Wage Use the following to answer question(s) : The Minimum Wage -(Exhibit: The Minimum Wage) In equilibrium, the wage will be _______ and the quantity of labor hired will be _______ . A) W₀; L₂ B) W₁; L₁ C) Wm; L₃ D) Wm; L₂ -(Exhibit: The Minimum Wage) In equilibrium, the wage will be _______ and the quantity of labor hired will be _______ .


A) W₀; L₂
B) W₁; L₁
C) Wm; L₃
D) Wm; L₂

E) A) and D)
F) A) and B)

Correct Answer

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The labor demand curve in a perfectly competitive factor market is the sum of all firms':


A) marginal product curves.
B) marginal revenue product curves.
C) marginal physical product curves.
D) average physical product curves.

E) B) and D)
F) All of the above

Correct Answer

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The wage paid by a firm buying labor in a perfectly competitive market:


A) does not change with the quantity of labor hired.
B) is greater than the market wage.
C) is less than the market wage.
D) increases with the quantity of labor hired.

E) All of the above
F) A) and C)

Correct Answer

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Since the 1970s, wage inequality in the United States has _______ due primarily to _____ skill-biased technological change.


A) decreased; decreased
B) increased; decreased
C) decreased; increased
D) increased; increased

E) C) and D)
F) B) and D)

Correct Answer

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The amount by which an additional unit of a factor increases the firm's total revenue during a period is:


A) marginal revenue product.
B) average product.
C) marginal factor cost.
D) marginal physical product.

E) A) and B)
F) C) and D)

Correct Answer

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Showing 101 - 120 of 189

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