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If the MRP of labor decreases, labor

  If the MRP of labor decreases, labor

a.demand will decrease

b.demand will increase

c.supply will increase

d.supply will decrease

e.demand and supply will be unaffected

82.              New technology that increases labor productivity will

a.lower the wage rate

b.decrease the demand for labor because fewer workers are needed

c.decrease the supply of labor because fewer workers are needed

d.increase the demand for labor because the MPP curve shifts to the right

e.decrease the demand for labor because the MPP curve shifts to the left

83.              If more and better technology is used by U.S. farm workers than by Egyptian farm
                            workers, then the

a.MRP of the U.S. farm workers will be higher than the MRP of the Egyptian farm
workers

b.MRP of the U.S. farm workers will be lower than the MRP of the Egyptian farm
workers

c.demand for the U.S. farm workers will be lower than the demand for the Egyptian
farm workers

d.price of farm goods will be higher in the U.S. than in Egypt

e.the wage rate of the U.S. farm workers will be lower than the wage rate of the
Egyptian farm workers

84.              Which of the following will decrease the demand for labor in the fast-food hamburger
                            industry?

a.a decrease in the cost of producing the hamburgers, e.g., lower wage rate

b.the price of pizza, a substitute for hamburgers, decreases

c.the price of pizza, a substitute for hamburgers, increases

d.more advanced technology is used in making fast-food hamburgers

e.the price of hamburgers increases

85.              The industry demand for labor in a competitive labor market

a.is the same as the individual demand for labor in a perfectly competitive market

b.is a horizontal curve at the market wage rate

c.slopes upward when there are diminishing returns

d.is the sum of the individual firms’ demand curves for labor

e.is downward sloping only if all firms that employ labor are identical

86.              Suppose there are 100 identical firms producing package delivery services. One of the
                            firms pays a wage rate of $7 and hires 20 delivery workers. The price the firm charges to
                            deliver a package is $10. We know then that the number of delivery workers in the
                            package delivery industry is

a.100 workers

b.200 workers

c.700 workers

d.2,000 workers

e.10,000 workers

87.              The supply curve of labor is typically upward sloping because

a.a decrease in the wage rate causes workers to work more hours

b.the opportunity cost associated with giving up leisure time rises

c.some workers leave the industry when the wage rate is too high

d.all workers show the same willingness to work at a given wage rate

e.the price of the good rises as more workers are hired and more output is produced

88.              The usual shape for a labor supply curve is

a.horizontal

b.vertical

c.dependent on the particular industry

d.downward sloping

e.upward sloping

89.              An upward-sloping supply curve of labor reflects the fact that the

a.demand for the good is increasing causing its price to increase

b.population size in the region is increasing

c.workers are willing to supply a greater quantity of labor at higher wage rates

d.marginal revenue product rises as the wage rate rises

e.workers’ opportunity costs are falling as the wage rises

90.              Assume the supply curve of labor has the usual shape. If the wage rate is $10, 1,000
                            carpenters are willing to supply their labor. If the wage rate increases to $20, the

a.quantity supplied of labor will be more than 1,000

b.quantity supplied of labor will be less than 1,000

c.labor supply curve shifts to the right

d.labor supply curve shifts to the left

e.same amount of carpentry labor will be supplied

Dec 11 2019 Read more Less More

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