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An individual firm hiring labor in a competitive labor market faces

  An individual firm hiring labor in a competitive labor market faces a(n)

a.horizontal supply curve of labor

b.backward-bending supply curve of labor

c.downward-sloping supply curve of labor

d.upward-sloping supply curve of labor

e.vertical supply curve of labor

52.              If MRP > MLC, the firm

a.is employing the optimal quantity of labor

b.should decrease the quantity of labor it employs

c.should lower the wage rate

d.should increase the quantity of labor it employs

e.should raise the wage rate

53.              If MRP

a.is employing the optimal quantity of workers

b.should decrease the quantity of labor it employs

c.should lower the wage rate

d.should increase the quantity of labor it employs

e.should raise the wage rate

54.              If MRP = MLC, the firm

a.is employing the optimal quantity of workers

b.should decrease the quantity of labor it employs

c.should lower the wage rate

d.should increase the quantity of labor it employs

e.should raise the wage rate

55.              The effect of imposing a minimum wage rate on the quantity of labor employed is

a.greater the less elastic is the demand for labor

b.greater the less elastic is the supply of labor

c.zero if the minimum wage rate is above the equilibrium wage rate

d.greater the more elastic is the demand for labor

e.greater the closer the minimum wage is to the equilibrium level

56.              When more workers are hired, the firm’s output expands at an increasing rate only

a.when the law of diminishing returns is operative

b.under conditions of noncompeting labor markets

c.if each worker’s MPP is positive

d.when technology is improved

e.when the gains from specialization of labor outweigh all other factors affecting labor
productivity

57.              The change in total output when one more unit of a resource is employed is called

a.total revenue

b.marginal revenue product

c.marginal physical product

d.quantity supplied

e.wage rate

58.              Typically, division of labor and specialization result in

a.increases in labor productivity

b.decreases in the marginal physical product of labor

c.decreases in the marginal revenue product of labor

d.decreases in the total output produced by labor

e.decreases in efficiency because workers are laid off

59.              Marginal physical product of labor is

a.total output divided by total labor employed

b.total labor employed divided by total output

c.change in total output divided by the change in labor employed

d.change in labor employed divided by the change in total output

e.total revenue divided by total output

60.              The marginal physical product of labor is measured in units of

a.dollars (as in revenue)

b.workers hired

c.hours worked

d.output

e.the wage rate

Dec 11 2019 View more View Less

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