Economics Ch 11 Quiz

2757 Words Mar 24th, 2012 12 Pages
Marginal [revenue] product
The increase in a firm's total revenue resulting from hiring an [additional] unit of labor or other variable resource.

Demand curve for labor
A curve showing the different quantities of labor employers are willing to [hire] at [different] wage rates in a given time period, ceteris paribus. It is equal to the marginal revenue product of labor.

Derived demand
The demand for labor and other factors of production that depends on the [consumer] demand for the final goods and services the factors produce.

Supply curve of labor
A curve showing the different quantities of labor [workers] are willing to offer employers at different wage rates in a given time period, ceteris paribus.

Human capital
The
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Correct Answer: d and e. Question 11 4 out of 4 points Exhibit 11-5 A firm facing a perfectly competitive labor market
Quantity Marginal Total of Labor Revenue Product Labor Cost 5 $2.00 $ 5.00
10 1.50 10.00
15 1.00 15.00
20 0.85 20.00
25 0.75 25.00
30 0.70 30.00

In Exhibit 11-5, at what wage rate will the firm hire these workers? Selected Answer: $1.
Correct Answer: $1. Question 12 0 out of 4 points If the wage rate is fixed at a certain level, the: Selected Answer: MP must be constant.
Correct Answer: labor supply curve is horizontal. Question 13 4 out of 4 points A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as: Selected Answer: featherbedding.
Correct Answer: featherbedding. Question 14 0 out of 4 points The labor supply curve facing an individual employer in a perfectly competitive labor market is: Selected Answer: upward sloping.
Correct Answer: horizontal. Question 15 0 out of 4 points Which of the following will decrease the demand for fast-food burger workers' labor? Selected Answer: A new technology allows burgers to be produced faster.
Correct Answer: The price of pizza, a substitute for burgers,

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