5. Which of the following statements is TRUE in a perfectly competitive labor ma

Question

5. Which of the following statements is TRUE in a perfectly competitive labor market? (A) When there is an increase in college graduates with computer science majors, there is an increase in the market wage for computer programmers. (B) When unemployment benefits increase, the market wage likely increases. (C) If grocery stores decide to use robots as cashiers, the market wage for human cashiers likely increases. (D) A binding minimum wage policy will make the equilibrium number of workers increase.. 6. A firm pays a wage rate of $200. Based on the information below, what is the number of workers employed? LaborTotal Product,Marginal ProductSales PriceTotal Revenue Revenue 10 10 10 10 10 10 10 45 65 82 MRP, MRC (A)1 (B) 2 (C) 3 (D) 4 7. What is the change in the quantity of labor demanded for the firm if the MRC increases from MRC1 to MRC2? (A) Decrease of 5 (B) Decrease of 4 (C) Increase of 4 (D) Increase of 5 8. Which of the following is NOT a method of obtaining higher wages? Quantity (A) Increase the demand for union labor by convincing employers that union labor is more productive.. (B) Restrict the available supply of labor.. (C) Negotiate a minimum wage that workers can be paid. (D) Increase the quota of working pemits for migrant workers.. 9. Ceteris paribus, if workers in an industry form an inclusive union, what is the impact on employment and the base wage in the industry? (A) Both industry employment and the base wage rise (B) Both industry employment and the base wage fall (C) Industry employment rises, the base wage falls (D) Industry employment falls, the base wage rises 10. Suppose your employer increases your salary by 14%, but there's an increase of 6% in the price index. Rounded to the nearest tenth of a percent, what is the percentage increase in your real wage? (A) 7% (B) 7.5% (C) 8% (D) 14%

Explanation / Answer

5) D is the right answer because all the rest options wont result in labour age or number get increased

6) A is the right answer because it is the minimal loss for the company as all others result hefty cost because of wage rate of 200

7) B is the right answer because moving from MC1 to MC2 will result in decrease of labor by 4

8) D is the righ answer becaust except option (D) all others will result in wage increase

9) D is the right answer because the union alarms industry to intake less labour but result in more wage to the current employers

10) B is the right answer and it can be shown as , = (114-106)/106=7.5%

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