Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 24, Problem 3MCQ
To determine
To identify:
The option that correctly explains the relationship depicted by the supply of labor.
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Students have asked these similar questions
In the model of a competitive labor market, an increase in the wage, ceteris paribus, causes A. an increase in the quantity demanded of labor B. the MRP curve to shift to the left c. a decrease in the quantity demanded of labor D. the MRP curve shifts to the right
Relative
RS'
RS
Apples
wage
rate,
10
Banas
8.
Cavlar
3.5
3.
Dates
Enchiladas
0.75
RD
Relative quantity
of labor
17. At the equilibrium wage depicted with relative supply at RS' in the
diagram above,
A. The home country would produce apples, bananas, caviar and
dates.
B. The foreign country would produce only caviar, dates and
enchiladas.
C. The Home country would produce apples and bananas.
D. The foreign country would produce only caviar and dates.
E. None of the above.
3. Using a separate graph for each change, show the effects of the following changes on
the market labor supply curve.
a. a decrease in the wage rate
b. an increase in the opportunity cost of time spent working
c. a decrease in the marginal product of labor
PROBLEMS FOR REVIEW
d. an increase in the number of workers
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
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- 6. The demand for will decrease in response to an Increase productivity b. better training of all laborers c. a decrease in the supply of labor d. decreased demand in markets for consumer goods and services 7. In a purely competitive market for economic resources, a firm's marginal revenue product curve for a factor could decrease as a result of an increase in the resource's marginal product b. decrease in the demand for the firm's product Cincrease in the prices of all other resource inputs d. decrease in the supply curve for the economic resource 8. Other things being equal. If a once - competitive firm attains a high degree of monopoly power. its resource demand curve will a. become perfectly inelastic b. remains perfectly elastic c. become more elastic d. become more inelastic 9. Other things being the same if the demand for labor is inelastic a decreases in wage rates will result in greater payrolls b. increases in wage rates will result in greater payrolls c. decreases in wage…arrow_forwardWhat are the three most important variables that cause the market supply curve for labour to shift? The supply curve for labour shifts with changes in A. the population, the wage rate and opportunities in other labour markets. B. the price of the product, demographics and opportunities in other labour markets. C. the population, demographics and opportunities in other labour markets. D. the population, the quantity of other inputs and opportunities in other labour markets E. immigration, minimum wage legislation and the wage rate.arrow_forwardA technological advance that increases laborproductivity willa. lower wages.b. decrease the demand for labor as fewer workers are needed. c. decrease the supply of labor as fewer workers are needed.d. increase the demand for labor as MP rises.e. decrease the demand for labor as MP falls.arrow_forward
- 8. In a perfectly competitive labour market, firms are wage takers and the marginal cost of labour equals: A. The average cost of labour B. The marginal product of labour C. The marginal revenue D. The total cost of labourarrow_forwardEconomics Which of the following statements best describes labor demand? a. The long-run labor demand is more elastic to wage rate than the short-run labor demand. b. The labor demand of a firm is more elastic to wage rate than the labor demand of the industry to which the firm belongs. c. In the short-run, firms have little scope in adjusting capital stock. Therefore, labor demand decisions of firms rest on how the marginal revenue from labor input is compared to the marginal cost of labor input. d. All of the above.arrow_forwardFor each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed. a. An increase in the price of capital. b. A union is formed which uses collective bargaining to obtain higher wages for its members. c. The marginal productivity of workers rises. d. People desire leisure more than ever before (e.g. it is Christmas Day). e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages. f. The fringe (non-monetary) benefits offered in this market have increased substantially. g. The government has just adopted an "open-door' immigration policy?arrow_forward
- How does an increase in labor-productivity increase income? a. An increase in productivity, increases the marginal product of labor which increases the demand for labor. As demand for labor increases, the wage rate increases. b. An increase in productivity, decreases the marginal product of labor which increases the demand for labor. As demand for labor increases, the wage rate increases. c. An increase in productivity, increases the marginal product of labor which decreases the demand for labor. As demand for labor decreases, the wage rate increases. d. An increase in productivity, increases the marginal product of labor which decreases the demand for labor. As demand for labor decreases, the wage rate decreases.arrow_forward1. Describe how the wage rate and level of employment are determined if the labor market is purely competitivearrow_forwardWhat is the effect of an increase in the income tax rate and more generous unemployment benefits on the labor market? An increase in the income tax rate and more generous unemployment benefits O A. decreases the supply of labor; decrease the supply of labor O B. decreases the supply of labor; increase the demand for labor O C. increases the demand for labor; increase the demand for labor O D. increases the demand for labor; decrease the supply of labor answer.arrow_forward
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