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When the quantity demanded of labor exceeds the quantity of labor supplied, the market

 When the quantity demanded of labor exceeds the quantity of labor supplied, the market
                            wage rate is

a.below equilibrium

b.above equilibrium

c.at its equilibrium level

d.equal to the workers’ MRP

e.equal to the workers’ opportunity cost

122.              How do you explain why income inequality in the United States has been increasing?

a.New technologies raise the MRP of educated workers, while having no (or a much
smaller effect) on the MRP of uneducated workers.

b.The MRP of rich workers increases more slowly than the MRP of poor workers.

c.The labor supply of poor workers shifts to the left, while the labor supply of rich
workers shifts to the right.

d.Many talented U.S. workers, earning high incomes, are lured away by firms located
in other countries that are paying considerably higher wage rates.

e.Minimum wage laws have raised the minimum wage rates.

123.              Wage rate differentials between nations are likely to narrow as

a.the MRPs of workers in high-wage countries increase

b.noncompeting labor markets become more prevalent

c.workers move more freely to high-wage countries

d.capital migrates to high-wage countries

e.workers in high-wage countries become more educated

124.              The more restrictive the government’s immigration policies are, the

a.narrower are the wage differentials between countries

b.wider are the wage differentials between countries

c.higher is the migration rate of workers between high-wage and low-wage countries

d.lower are the opportunity costs of work in high-wage countries

e.smaller is the difference between the supply curves of labor in different countries

125.              The fact that movie star Brad Pitt’s salary is much higher than the salary earned
                            by a Nobel prize winning economics professor can be explained by the

a.existence of noncompeting labor markets

b.elimination of noncompeting labor markets

c.failure of the market to reward talent fairly

d.fact that wage rates cannot reflect the influence of education in labor markets

e.willingness of some people to accept a lower wage rate in order to do what they like
most to do

126.              Which of the following is the most likely effect of minimum wage laws?

a.increase in the quantity of labor supplied by workers

b.decrease in the quantity of labor supplied by workers

c.increase in the quantity of labor demanded by firms

d.decrease in unemployment

e.a shift to the left of the demand curve for labor

127.              The ethics justifying wage rate determination in a perfectly competitive labor market is

a.from each according to his or her ability, to each according to his or her labor supply

b.workers receive a wage rate equal to their marginal revenue product

c.the wage rate differentials workers receive are equal to the differentials in
noncompeting labor markets

d.workers produce a good whose price alone determines their wage rate and
determines as well the value consumers place on the good they produce

e.the wage rate that workers receive multiplied by the number of workers equals the
sum of each worker’s marginal revenue product

128.              Which of the following is not consistent with the ethics underlying the wage rate
                            determined in a perfectly competitive labor market?

a.wage rate differentials between women and men, and between white and minority
workers

b.workers should receive their MRP

c.noncompeting labor markets

d.competing labor markets

e.wage rate differentials between workers with different abilities and talents

129.              What happens to the MPP of labor when the price of the good produced increases?

a.It increases proportionally with the price.

b.It decreases proportionally with the price.

c.Nothing happens because it stays the same.

d.It falls because quantity demanded falls.

e.It rises because quantity demanded falls.

130.              If the price of a motorcycle is $5,000, and workers who make motorcycles earn a wage
                            rate of $50, how many workers will be hired when the labor market is in equilibrium?

a.There is not enough information to determine how many would be hired.

b.Hiring will continue until the price falls to $50.

c.Hiring will continue until the wage rate rises to $5,000.

d.Hiring will continue until the MRP of the worker is greater than zero.

e.Hiring will continue until the MPP of the last worker is 0.01 motorcycles.

Dec 12 2019 View more View Less

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