Question

When a worker's MRP is difficult to measure, for example, a college professor or corporate CEO, wages can be determined by the:

		Supply of labor alone.
		Minimum wage.
		Wages the worker would receive in his or her best alternative job.
		Average wage of government workers.

1 points   

QUESTION 4

The opportunity cost of working is the:

		Wage rate plus the value of fringe benefits earned in the process.
		Wage rate earned in the process but not the fringe benefits.
		Personal satisfaction gained from working.
		Value of leisure time that is given up in the process.

1 points   

QUESTION 6

An increase in the labor productivity is best illustrated by:

		An upward shift of the MRP curve.
		A downward shift of the MPP curve.
		A leftward shift of the labor-supply curve.
		A rightward shift of the labor-supply curve.

1 points   

QUESTION 7

When people are standing in line for jobs and there are more applicants than jobs, then the job market is characterized by a:

		Shortage of jobs from the point of view of the buyer in the labor market.
		Surplus of jobs from the point of view of the seller in the labor market.
		Shortage of labor.
		Surplus of labor.

1 points   

QUESTION 9

Which of the following will decrease the market supply of labor, ceteris paribus?

		An increase in immigration.
		A decrease in labor productivity.
		A decrease in the willingness of people to work.
		An increase in the marginal revenue product of labor.

1 points   

QUESTION 10

Which of the following will decrease the market demand for labor, ceteris paribus?

		A decrease in immigration.
		An increase in labor productivity.
		A decrease in the price of the product produced by labor.
		A decrease in the wage rate.

1 points   

QUESTION 11

The quantities of labor employers are willing and able to hire at alternative wage rates is the:

		Marginal physical product of labor.
		Government employment minimum.
		Supply of labor.
		Demand for labor.

1 points   

QUESTION 12

The marginal revenue product of labor is:

		The additional output from hiring one more worker.
		The additional revenue a firm receives from hiring one more worker.
		Equal to the marginal physical product of labor times the wage rate.
		Equal to the price of the product times the wage rate.

1 points   

QUESTION 14

Labor unions are able to maintain _____ wages for union members by _____ the market.

		Above-equilibrium; excluding some workers from
		Above-equilibrium; including all workers in
		Below-equilibrium; excluding some workers from
		Below-equilibrium; including all workers in

1 points   

QUESTION 15

The market demand for labor depends on all of the following except:

		the number of employers.
		the marginal revenue product of labor in each firm and industry.
		the marginal physical product of workers.
		each worker's willingness to work at alternative wage rates.

Answer 1

• 3) Wages the worker would receive in his or her best alternative job.

• 4) Value of leisure time that is given up in the process.

• 6) An upward shift in the MRP curve.

• 7) Surplus of labor.

• 9) A decrease in the willingness of people to work.

• 10) A decrease in the price of the product produced by labor.

• 11) Demand for labor.

• 12) The additional revenue a firm receives from hiring one more worker.

• 14) Above-equilibrium ; excluding some workers from.

• 15) Each worker's willingness to work at alternative wage rates.