Question

Question 22

1. For a worker, the opportunity cost of an hour of leisure

   	a.	is the same for a celebrity talk-show host as it is for a teacher.
   	b.	is determined by factors that are unrelated to his hourly wage.
   	c.	falls by $8 when his wage rises by $8 per hour.
   	d.	rises by $8 when his wage rises by $8 per hour.

Question 23

1. An increase in the demand for houses

   	a.	increases the equilibrium wage of carpenters and decreases the value of carpenters’ marginal product of labor.
   	b.	increases the equilibrium wage of carpenters and increases the value of carpenters’ marginal product of labor.
   	c.	decreases the equilibrium wage of carpenters and increases the value of carpenters’ marginal product of labor.
   	d.	decreases the equilibrium wage of carpenters and decreases the value of carpenters’ marginal product of labor.

Question 24

1. An increase in the value of the marginal product of labor has the effect of increasing the

   	a.	demand for labor.
   	b.	wage.
   	c.	quantity of labor employed.
   	d.	All of the above are correct.

Answer 1

Answer 22

for a worker,the opportunity cost of an hour of leisure

rises by $8 when his wage rises by $8 per hour

The opportunity cost of leisure is the income forgone working.

Answer 23

C decreases the equilibrium wage of carpenters and increases the value of carpenters’ marginal product of labor.

Answer 24

B. Wage