Figure 16-2
Refer to Figure 16-2. InPanel A, at high wages (segment iii), (Points : 1)
the price of leisure is rising relative to the price of labor.
the price of leisure is falling relative to the price of labor.
work more as wage increases
labor suppliers take more leisure as wages increase.
2. According to the marginal productivity theory of income, (Points : 1)
the greater the quantity of resources owned by an individual, the greater his incentive to increase productivity and his income.
the average income received by an individual who supplies resources is influenced by the resources owner's marginal productivity.
the income received by an individual who supplies labor services equals the incremental benefit generated to the firm by that individual's labor.
the income received by an individual who supplies labor services equals the profit generated to the firm by that individual's labor.
3. Consider the market for pilots. What is likely to happen to the equilibrium wage and quantity of pilots if the government enforces a lower mandatory retirement age, say from the age 65 years to the age 62? (Points : 1)
The equilibrium wage and the equilibrium quantity of pilots rise.
The equilibrium wage and the equilibrium quantity of pilots fall.
The equilibrium wage falls and the equilibrium quantity of pilots rises.
The equilibrium wage rises and the equilibrium quantity of pilots falls.
4. Demand in factor markets differs from demand in product markets in that (Points : 1)
the demand for a factor of production is difficult to determine.
the demand for a factor of production is influenced by workers' productivity and by the producers' expected sales revenues, not by tastes and preferences of consumers.
demand for a factor of production is based on the tastes and preferences of firms.
demand for a factor of production is based on the tastes and preferences of resource owners.
5.
Table 16-1
Refer to Table 16-1. Suppose the output price is $3. If the firm represented in the table is maximizing its profit by hiring six workers, what is the wage rate? (Points : 1)
$120
$40
$65
There is insufficient information to answer the question.
6. What happens to the equilibrium wage and quantity of labor if output price rises? (Points : 1)
The equilibrium wage and the equilibrium quantity of labor rise.
The equilibrium wage and the equilibrium quantity of labor fall.
The equilibrium wage falls and the equilibrium quantity of labor rises.
The equilibrium wage rises and the equilibrium quantity of labor falls.
7. At low wages, the labor supply for most people slope upward because (Points : 1)
the supply of labor is perfectly inelastic at low wages.
as wages increase the opportunity cost of leisure increases.
as wages increase income also increases unless hours worked decrease.
the demand for labor is perfectly elastic at low wages.
8.
Table 16-2
Refer to Table 16-2. What is the profit-maximizing quantity of labor that the firm should hire? (Points : 1)
5 units
$4 units
$3 units
2 units
9. The primary purpose of labor unions is to (Points : 1)
ensure that workers receive adequate safety training.
ensure that all members earn identical incomes.
negotiate with employers about wages and working conditions.
endorse candidates and donate money to them.
10.
Table 16-2
Refer to Table 16-2. The marginal profit from hiring the second unit of labor is (Points : 1)
$4,200.
$1,960.
$1,800.
$1,450.
question 1
question 5 question 8
question 10