1)The demand for labor is called a derived demand because Select one: a. labor c
ID: 1211125 • Letter: 1
Question
1)The demand for labor is called a derived demand because
Select one:
a. labor cannot really be purchased.
b. the demand for labor cannot be estimated.
c. the demand for labor comes from the demand for capital.
d. the demand for labor comes from the demand for goods produced by labor.
e. labor is a final product.
2)The local market for unskilled labor is currently in equilibrium at a wage of $8 per hour and employment of 1,000 workers. Which of the following statements is true?
Select one:
a. There are firms who wish to hire at the current wage but cannot find workers.
b. There is no worker who wishes to work for $8 per hour who is not employed.
c. No firm in this market would hire more labor at any wage.
d. Every unskilled worker in the local market has a job.
e. There are workers who wish to work at $8 per hour who cannot find jobs.
3)The local market for unskilled labor is currently in equilibrium at a wage of $8 per hour and employment of 1,000 workers. What will happen in this market if there is increased immigration to the area?
Select one:
a. The demand for labor will increase, and wages and employment will rise.
b. The supply of labor will increase, wages will fall, and employment will rise.
c. The demand for labor will decrease, and wages and employment will fall.
d. The supply of labor will decrease, wages will rise, and employment will fall.
e. Both supply and demand will shift, and thus the effect on wages cannot be determined.
4)Which of the following would cause a decrease in the market supply of labor?
Select one:
a. A decrease in the wage rate
b. An increase in the wage rate
c. An increase in the desire of leisure time for workers
d. A greater need for workers by employers.
e. An increase in the number of workers in the market
5)A increase in the wage rate
Select one:
a. decreases the quantity of labor supplied.
b. increases the quantity of labor supplied.
c. decreases the supply of labor.
d. decreases the price of leisure.
e. increases the supply of labor.
6)A tenth worker that could be hired by a toy factor would be able to increase total output by 50 toys per week. Now if each toy could be sold at $2 a piece, under which of the following conditions would it be profitable to hire this worker.
Select one:
a. If the weekly wage for this worker is $80.
b. We need more information to determine this.
c. If the weekly wage for this worker is $120.
d. If the weekly wage for this worker is $200.
7)If the price of the product produced increases, each worker (from the firm's viewpoint) is worth ________, and the firm's demand for labor will ________.
Select one:
a. more; decrease
b. less; increase
c. less; decrease
d. more; stay the same
e. more; increase
8)Which of the following would cause an increase in the demand for labor?
Select one:
a. A decrease in the productivity of labor
b. An increase in the price of output
c. A change in the value that workers place on leisure
d. A decrease in the wage rate
e. A increase in the number of workers available
9)Which of the following is a reason why workers typically require higher wages in order to work additional hours?
Select one:
a. The decreasing opportunity cost of labor.
b. The decreasing value of leisure time that is given up.
c. The diminishing marginal utility of additional income.
d. The diminishing marginal revenue product of labor.
10)The market supply of labor depends on the:
Select one:
a. Number of employers.
b. Marginal revenue product of labor.
c. Price of the product being produced.
d. Number of available workers.
11)The marginal revenue product curve and marginal physical product curve have similar shapes because:
Select one:
a. MRP is equal to MPP times price, if the product price is constant.
b. MPP is equal to MRP times price, if the product price is constant.
c. MPP is equal to MRP times the wage rate.
d. MRP is equal to MPP plus product price.
12)A firm should continue to hire workers until the:
Select one:
a. MRP is equal to demand.
b. MPP is equal to the number of workers hired.
c. MRP is equal to the market wage rate.
d. MRP is equal to zero.
13)If labor productivity rises, then wages:
Select one:
a. Will decrease and the number of jobs will decrease.
b. Will decrease, but the number of jobs will not change.
c. Can increase without a decrease in the number of jobs.
d. Can increase, but only if the number of jobs decrease.
14)If the interest rate is 5%, the present value of a $5,000 payment in two years is
Select one:
a. $5,125.
b. $4,535.
c. $5,250.
d. $4,762.
e. $5,000.
15)The net present value of an investment is the
Select one:
a. difference between the present value of an asset minus the present value of expenditures on the asset.
b. nominal value of all future income from an asset.
c. current value of an asset minus current expenditures on the asset.
d. present value of future income from an asset.
e. present value of all future expenditures on an asset.
16)A firm is considering a number of investment projects but has a finite amount of funds. The firm should choose
Select one:
a. the projects with the highest net present value.
b. the project that has the largest future payment.
c. any project that has a positive net present value.
d. the projects that have the lowest cost.
e. any project that has a positive present value.
17)Financial capital is the
Select one:
a. assets of the firm.
b. share price of the firm's stock.
c. savings of the firm.
d. funding that firms receive to purchase inputs for production.
e. profits of the firm.
18)If there are external benefits (postive externalities) then the private sector markets will:
Select one:
a. produce the efficient amount only if a tax is imposed on the producers.
b. produce more than the efficient amount
c. produce the efficient amount
d. produce less than the efficient amount
19)If a market has external costs (negative externalities) then this market will (without any government action) do which of the following?
Select one:
a. produce more than the optimal (efficient) amount
b. produce the optimal (efficient) amount
c. produce less than the optimal (efficient) amount
d. not produce any amount of this product
e. maximize Social Welfare (Net Gain to Society)
20)When private markets do not allocate resources efficiently, it is called
Select one:
a. discrimination.
b. imperfect competition.
c. government intervention.
d. market dynamics.
e. market failure.
21)A good is called non-excludable if
Select one:
a. one person's consumption detracts from the enjoyment of another's.
b. those who have not paid for it can be prevented from consuming it.
c. it is not possible to keep those who have not paid from consuming it.
d. many people can consume the good at the same time.
e. there are negative externalities in consumption.
22)Marginal social benefit is equal to private marginal
Select one:
a. revenue plus private marginal cost.
b. cost plus external cost.
c. benefit plus private marginal cost.
d. revenue plus social marginal cost.
e. benefit plus any marginal external benefit.
23)An externality occurs when
Select one:
a. nonrenewable resources are exhausted.
b. a cost or benefit falls on someone who is not part of the market transaction.
c. common property goods are overused.
d. there are deadweight losses.
e. insufficient amounts of pure public goods are supplied.
24)If Melanie plants trees in her yard, she receives a marginal benefit of $50 from the first tree, $25 from the second tree, and $10 from the third tree. However, the neighborhood will receive an additional $25 in social benefits from each of Melanie's trees. If the price of each tree is $20, then the efficient amount (socially optimal number) amount of trees for Melanie and the neighborhood is:
Select one:
a. one tree
b. There is not enough information to answer this question.
c. two trees
d. three trees
e. zero trees
Explanation / Answer
(1) (d)
Demand for labor is derived because it is determined by the demand of the product which is produced by the labor input.
(2) (b)
At equilibrium wage rate, all workers who are willing to work at that wage rate are employed.
(3) (b)
Immigration increases labor supply, shifting labor supply curve rightward, which will decrease wage rate and increase employment.
(4) (c)
If workers want more leisure, they will work less and supply of labor will decrease.
NOTE: As per Chegg Answering Policy, first 4 questions are answered.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.