Question

1. The individual labor supply curve will be negatively sloped if the substitution effect of wages is:

Group of answer choices

a) Weaker than the income effect of wages.

b) Equal to the income effect of wages.

c) Stronger than the income effect of wages.

d) Negative.

2.

Ceteris paribus, if immigration to the United States increases the number of workers, the market labor-supply curve will shift to the:

Group of answer choices

a) Right and the equilibrium wage rate will fall.

b) Right and the equilibrium wage rate will rise.

c) Left and the equilibrium wage rate will fall.

d) Left and the equilibrium wage rate will rise.

3.

If consumers decide to buy fewer strawberries, then the:

Group of answer choices

a) Demand for strawberry pickers will fall.

b) Demand for strawberry pickers will rise.

c) Quantity demanded of strawberry pickers will fall.

d) Quantity demanded of strawberry pickers will rise.

4.

Other things being equal, higher wage rates will:

Group of answer choices

a)Decrease the supply of labor.

b)Increase the supply of labor.

c)Decrease the demand for labor.

d)Decrease the quantity demanded of labor.

5.

The marginal revenue product of labor is equal to:

Group of answer choices

a)The marginal physical product multiplied by the marginal revenue of the output.

b)The change in the quantity of labor divided by the change in total revenue.

c)The change in total output divided by the change in the quantity of labor.

d)The percentage change in total revenue divided by the percentage change in the quantity of labor.

6.

Other things being equal, a profit-maximizing employer will employ additional labor as long as:

Group of answer choices

a)The MPP of labor exceeds the MRP of labor.

b)The wage rate exceeds marginal revenue.

c)The cost efficiency of labor falls relative to other inputs.

d)The MRP of labor exceeds the wage rate.

7.

In Table 15.1, the marginal physical product of the third worker hired is:

Group of answer choices

a)15 units per hour.

b)4 units per hour.

c)3 units per hour.

d)5 units per hour.

8.

In Table 15.1, how many workers should be hired?

Group of answer choices

a)2

b)3

c)4

d)5

9.

If the elasticity of labor demand is -0.60, a 15 percent increase in the wage rate will induce a:

Group of answer choices

a)9 percent decrease in the quantity of labor demanded.

b)9 percent increase in the quantity of labor demanded.

c)4.0 percent decrease in the quantity of labor demanded.

d)4.0 percent increase in the quantity of labor demanded.

10.

If the elasticity of labor demand is -0.60, then as a result of the increase in the wage rate, total labor income will   _________.

Group of answer choices

a) increase because labor demand is elastic.

b)decrease because labor demand is elastic.

c)increase because labor demand is inelastic.

d) decrease because labor demand is inelastic.

Answer 1

1. The individual labor supply curve will be negatively sloped if the substitution effect of wages is:

a) Weaker than the income effect of wages.

Explanation: Income effect would lead to lower labor supplied due to higher wages. Substitution effect would lead to higher labor supplied due to higher opportunity cost of leisure.

2.Ceteris paribus, if immigration to the United States increases the number of workers, the market labor-supply curve will shift to the:

a) Right and the equilibrium wage rate will fall.

Explanation: The increase in number of workers shifts the labor supply curve to the right and results in lower wages.

3. If consumers decide to buy fewer strawberries, then the:

a) Demand for strawberry pickers will fall.

Explanation: The demand curve will shift to the left.

4.Other things being equal, higher wage rates will:

d)Decrease the quantity demanded of labor.

Explanation: it is a movement along the labor curve.