Last 2 questions please a. is the additional revenue that the worker brings in t
ID: 1130232 • Letter: L
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Last 2 questions please
a. is the additional revenue that the worker brings in to the firm b. is the maximum price at which a product can be sold in a market. c. is the increment in total cost of a firm when the worker is hired. d. equals the average product of a firm divided by the marginal product of th 6. The value of a worker's marginal product: worker. 7. A firm has an incentive to hire more worker so long as the value of their marginal product, a. Is greater than zero b. Is greater than or equal to the wage they would have to pay them. c. Is less than the wage they would have to pay them. d. Is equal to the price of the good they are selling. 8. The slope of the labor demand curve can be attributed to the Law of: a. Decreasing Opportunity Cost. b. Increasing Opportunity Cost. c Increasing Marginal Productivity of Labor. d. Diminishing Marginal Productivity of Labor. 9. Suppose that there is no wage rigidity, and a new technology raises the productivit of labor. At the new equilibrium a. Wages and employment will be higher b. Wages and employment will be lower c. Wages will be higher and employment will be lower d. Wages will be lower and employment will be higher 10. Suppose that there is no wage rigidity and that the government offers more generou unemployment benefits so that the cost of taking more time to find a job is lower. A the new equilibrium a. Wages and employment will be higher b. Wages and employment will be lower c. Wages will be higher and employment will be lower d. Wages will be lower and employment will be higher I. Which of the following explains why frictional unemployment exists in an econom a. It arises because most of the workers shirk at work. b. It arises because unemployment benefits encourage workers not to look for jobs c. It arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy d. It arises because job search is completely a supply side phenomenon in the labo market, and firms make no attempts to advertise for the vacancies they have.Explanation / Answer
10. C.
Explanation: Higher unemployment benefits will reduce labor supply as unemployed people will be less desperate to search for a job. Lower supply and constant demand will increase wage. However, employment will also come down because of relatively lower labor supply.
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