Question

QUESTION 1

The impact on the labor market due to an increase in the minimum wage:

		Is significant since it increases employment.
		Cannot be measured unless the increase is more than $1.
		Depends on factors such as the size of the increase and the state of the economy.
		Is significant since it reduces unemployment.

1 points   

QUESTION 2

An upward-sloping supply curve of labor illustrates that the:

		Supply of labor and the wage rate are inversely related.
		Quantity of labor supplied and the wage rate are directly related.
		Quantity of labor supplied and the minimum wage are indirectly related.
		Quantity of labor supplied and the hours of work per week are inversely related.

1 points   

QUESTION 3

Which of the following would cause the equilibrium price of labor to increase?

		A decrease in the price of the product that labor is helping to produce.
		The use of a larger stock of capital with the labor force.
		An increase in the desire for leisure.
		A more efficient method of combining labor and capital in the production process.

1 points   

QUESTION 4

Both wages and employment can increase at the same time as long as the:

		Marginal physical product of labor decreases.
		Number of available workers increases.
		The price of the product being produced decreases.
		Marginal revenue product of labor increases. QUESTION 5 The market equilibrium wage occurs where: Demand intersects the marginal cost curve. Marginal physical product equals marginal revenue product. All workers and all employers are satisfied with the wage. Market demand for labor intersects the market supply of labor. 1 points    QUESTION 6 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.

Answer 1