Microeconomics Chapter 28

Other things​ equal, an increase in the productivity of labor will lead to A. no change in the number of workers being hired. B. lower wages. C. fewer workers being hired. D. higher wages.

If the MRP of labor is less than the wage​ rate, the perfectly competitive firm will A. decrease employment. B. raise the wage rate. C. increase employment. D. maintain the current level of employment.

Which of the following will not shift the supply of​ labor? A. Job flexibility. B. Changes in working conditions. C. A large increase in the relative wages paid in a related industry. D. An increase in the wage rate.

The monopolist hires fewer workers than the perfect competitor because A. the MRP curve for the monopolist is above the MRP curve of the perfect competitor. B. the monopolist produces less than the perfect competitor and needs less​ labor, other things being equal. C. product price must rise for the monopolist to sell more. D. None of the above.

For a firm facing a perfectly elastic supply of​ labor, the employment of workers will continue until A. marginal factor cost​ = wage rate. B. MPP​ = MR. C. MRP​ = wage rate. D. All of the above.

The net​ short-run effects of outsourcing on U.S. wages and employment are A. mixed. B. always positive. C. limited to blue collar workers. D. always negative.

In the​ short-run, labor outsourcing by U.S. firms tends to A. reduce U.S. wages but increase U.S. employment. B. increase both U.S. wages and employment. C. reduce both U.S. wages and employment. D. increase U.S. wages but reduce U.S. employment.

A perfectly competitive firm determines that its MRP of labor divided the wage equals 1.2. This firm should A. hire more labor. B. pay a lower wage. C. examine the MRP of the other inputs and divide them by their prices. If they are all equal to​ 1.2, the firm is maximizing profits. D. purchase less labor.

The price elasticity of demand for an input A. is lower the greater the price elasticity of demand for the final product. B. is larger the longer the time period being considered. C. is lower the larger the proportion of total costs accounted for by that input. D. is lower as more substitutes for the input are available.

Which of the following is not a key factor that influences the elasticity of demand for​ labor? A. The proportion of total costs that is accounted for by labor. B. The length of time the firm has to adjust to a change in the​ labor's price. C. The availability of labor in the market. D. How easy it is to substitute other inputs for labor in the production process. E. The price elasticity of demand for the final product.

If the MRP of labor is less than the wage​ rate, the perfectly competitive firm will A. decrease employment. B. maintain the current level of employment. C. increase employment. D. raise the wage rate.

For a firm facing a perfectly elastic supply of​ labor, the employment of workers will continue until A. MRP​ = wage rate. B. MPP​ = MR. C. marginal factor cost​ = wage rate. D. All of the above.

The net​ short-run effects of outsourcing on U.S. wages and employment are A. always positive. B. mixed. C. limited to blue collar workers. D. always negative.

A perfectly competitive firm determines that its MRP of labor divided the wage equals 1.2. This firm should A. hire more labor. B. examine the MRP of the other inputs and divide them by their prices. If they are all equal to​ 1.2, the firm is maximizing profits. C. pay a lower wage. D. purchase less labor.

The price elasticity of demand for an input A. is lower the greater the price elasticity of demand for the final product. B. is larger the longer the time period being considered. C. is lower the larger the proportion of total costs accounted for by that input. D. is lower as more substitutes for the input are available.

In the​ short-run, labor outsourcing by U.S. firms tends to A. increase U.S. wages but reduce U.S. employment. B. reduce U.S. wages but increase U.S. employment. C. reduce both U.S. wages and employment. D. increase both U.S. wages and employment.

Which of the following will not shift the supply of​ labor? A. An increase in the wage rate. B. Changes in working conditions. C. A large increase in the relative wages paid in a related industry. D. Job flexibility.

Which of the following is not a key factor that influences the elasticity of demand for​ labor? A. The length of time the firm has to adjust to a change in the​ labor's price. B. The availability of labor in the market. C. The price elasticity of demand for the final product. D. The proportion of total costs that is accounted for by labor. E. How easy it is to substitute other inputs for labor in the production process.

Other things​ equal, an increase in the productivity of labor will lead to A. no change in the number of workers being hired. B. lower wages. C. higher wages. D. fewer workers being hired.

The monopolist hires fewer workers than the perfect competitor because A. the monopolist produces less than the perfect competitor and needs less​ labor, other things being equal. B. the MRP curve for the monopolist is above the MRP curve of the perfect competitor. C. product price must rise for the monopolist to sell more. D. None of the above.

For a perfectly competitive firm, the value of the marginal product of labor falls as more workers are hired because of the diminishing Question 1 options: marginal cost of production. price of labor. output price. marginal physical product of labor.

Derived demand means Question 2 options: labor demand is derived from demand for the product it produces. labor demand is determined by the supply of labor. labor demand will shift about in a random fashion. the labor demand curve will be upward sloping.

The additional production resulting from hiring one more worker is Question 3 options: marginal physical product. marginal production. marginal cost. additional production.

Question 4 (1 point) Question 4 Unsaved The marginal revenue product is Question 4 options: the change in total output resulting from a one-unit change in variable output. the change in total revenue resulting from a one-unit change in variable input. the change in marginal revenue resulting from a one-unit change in variable input. the change in marginal output resulting from a one-unit change in variable input.

Marginal factor cost is Question 5 options: the total value of factor cost divided by the one cost that is being held constant. the change in the value of output from using an additional unit of the factor. the cost of an additional unit of output. the cost of using an additional unit of an input. Save

The demand for labor is Question 6 options: derived from the satisfaction that hiring the inputs provides the owner or manager of the firm more money. totally unrelated to the demand curve for the final product. derived from the demand for the final product being produced. derived from a utility maximizing process similar to that used to derive the demand curve for goods and services. Save

The demand curve for labor will shift whenever Question 7 options: the marginal factor cost changes. the wage rate changes. demand for the final product changes. the supply of labor changes.

If labor productivity increases, Question 8 options: the demand for labor increases. labor costs rise by equal increments. jobs will relocate. some workers will be laid off. Save

The price elasticity of demand for labor will depend upon all but the Question 9 options: availability of substitutes for inputs. price elasticity of demand for the final product. time period being considered. price elasticity of supply for the final product.

In labor markets, the substitution effect occurs when Question 10 options: a change in the price of a substitute input reduces the cost of capital. a change in the price of a substitute input causes the demand for labor to change in the same direction. a substitute good also functions as a complement. the cost of production falls enough that the firm will produce a larger amount of output.