Question 1

A winner-take-all labour market is one where

Accepted Answer

A)   large differences in human capital translate into small differences in wages.
B)   one worker receives all of the available compensation and the rest receive nothing.
C)   small differences in human capital translate into small differences in wages.
D)   small differences in human capital translate into large differences in wages.
E)   pay is random.F) B) and D)
G) A) and E)

Question 2

Marginal product is a measure of the __________ output associated with __________.

Accepted Answer

A)   extra;the total employment level
B)   average;the average worker
C)   extra;hiring an extra worker
D)   average;hiring an extra worker
E)   extra;the average workerF) B) and C)
G) B) and E)

Question 3

Compulsory education in Canada is an attempt to provide some minimum level of

Accepted Answer

A)   income for all Canadians.
B)   human capital for all school-aged Canadians.
C)   winner mentality for all Canadians.
D)   positive externality for all Canadians.
E)   physical capital for all Canadians.F) All of the above
G) A) and B)

Question 4

If a firm hires workers up to the point where the extra revenue generated by the last worker equals the extra cost,then the firm is

Accepted Answer

A)   maximizing output.
B)   maximizing profit.
C)   minimizing cost.
D)   maximizing labour cost.
E)   maximizing total revenue.F) A) and B)
G) C) and E)

Question 5

Wage differentials occur for all the following reasons EXCEPT

Accepted Answer

A)   homogeneous workers.
B)   labour market imperfections.
C)   noncompeting groups of workers.
D)   compensating differences to offset non-monetary differences in jobs.
E)   labour unions.F) C) and D)
G) None of the above

Question 6

Changes in unemployment that occur at different times of the year is

Accepted Answer

A)   structural unemployment.
B)   cyclical unemployment.
C)   seasonal unemployment.
D)   natural unemployment.
E)   uncertain unemployment.F) A) and D)
G) B) and D)

Question 7

In many cases,labour represents 70% of all inputs in production.Firms will only hire the workers they need for their targeted level of production.Hence,a firm's demand for labour is a

Accepted Answer

A)   targeted demand.
B)   forecasted demand.
C)   law of demand.
D)   derived demand.
E)   decisional demand.F) A) and B)
G) A) and C)

Question 8

-Refer to the diagram above.Starting at labour demand curve D,a reduction in worker productivity causes a(n) __________,which moves the equilibrium wage _________ and the equilibrium employment level __________.

Accepted Answer

A)   decrease in the quantity of labour demanded;down;down
B)   decrease in labour demand;down;down
C)   decrease in labour demand;up;down
D)   increase in labour demand;up;up
E)   decrease in labour demand;down;upF) C) and D)
G) All of the above

Question 9

In the labour market,the wage rate __________ marginal labour cost for a __________.

Accepted Answer

A)   is less than;perfect competitor
B)   is less than;monopsonist
C)   equals;monopsonist
D)   is greater than;monopsonist
E)   equals;monopolistF) C) and E)
G) D) and E)

Question 10

Which of the following is NOT true of labour unions?

Accepted Answer

A)   They seek to increase members' wages.
B)   They seek to increase medical benefits paid to members.
C)   They bargain for safer working conditions.
D)   They bargain for shorter work weeks.
E)   They encourage management to adopt labour-saving technology.F) B) and E)
G) A) and B)

Question 11

Which of the following is NOT a reason why union firms can successfully compete with non-union firms?

Accepted Answer

A)   Employee morale is possibly higher at union firms.
B)   Communication between management and workers is more formal,and hence improved,at union firms.
C)   Labour turnover is lower at union firms.
D)   Union firms are legally protected from price competition from non-union firms.
E)   Union employees tend to have higher productivity.F) A) and E)
G) C) and D)

Question 12

The above graphs represent the demand for tea tasters for Firm A and Firm B.These firms are the only ones that employ labour in this particular occupation.
-Refer to the graphs above.If the wage rate in this labour market is $3 per hour,then the total quantity of labour demanded is __________ person-hours per day.

Accepted Answer

A)   10
B)   20
C)   30
D)   40
E)   80F) A) and B)
G) None of the above

Question 13

The combination of barriers to advancement in a chosen career and the supply response to those barriers produces

Accepted Answer

A)   occupational segregation.
B)   rushed promotion.
C)   retention bonuses.
D)   increased financial rewards.
E)   equal opportunities.F) A) and B)
G) C) and D)

Question 14

If there are several firms in a particular labour market,the total demand for labour will then be ___________ of the individual firms' demands.

Accepted Answer

A)   the vertical sum
B)   the horizontal sum
C)   product
D)   equal to the highest
E)   equal to the lowestF) C) and D)
G) B) and C)

Question 15

An employer who acts on a prejudiced assumption and _____ hires a member of the group that experiences unfavourable discrimination is _____ proven wrong in his assumption because he _____ observes whether a person from that group could have done the job.

Accepted Answer

A)   never;sometimes;never
B)   always;sometimes;never
C)   never;never;never
D)   never;never;always
E)   always;always;alwaysF) B) and C)
G) C) and D)

Question 16

Which of the following is a characteristic of monopsony?

Accepted Answer

A)   The type of labour employed is relatively mobile.
B)   The supply curve for labour lies above the marginal resource cost curve.
C)   The wage rate it must pay workers varies directly with the number of workers it employs.
D)   The firm's employment is a small portion of the total employment of that type of labour.
E)   The wage rate it must pay workers is constant.F) All of the above
G) B) and C)

Question 17

Josie has an undergraduate degree in economics and has been working as a utility rate analyst at the local electricity utility.If she continues on her present career path,the present value of her lifetime earnings is $250,000.If she takes two years off and gets an MA degree in economics,the present value of her lifetime earnings is $275,000.The annual cost of an MA degree in economics is $15,000 and the interest rate is 8%.Assume that school fees are paid at the beginning of the year.
-Refer to the information above.The discounted (present value) cost of Josie's graduate degree in economics is

Accepted Answer

A)   $30,000.
B)   $28,889.
C)   $26,532.
D)   $25,000.
E)   $15,000.F) C) and E)
G) All of the above

Question 18

Setting aside concerns about demand,part of the difference in the earnings of auto mechanics and chemical engineers is

Accepted Answer

A)   discrimination.
B)   blue-collar versus white-collar bias.
C)   due to differences in education.
D)   a lack of union representation.
E)   due to differences in work habits.F) All of the above
G) B) and E)

Question 19

The value of marginal product of labour curve is downward sloping because

Accepted Answer

A)   firms must lower price to sell more.
B)   at lower wages,only less qualified workers are available.
C)   of the law of diminishing marginal product.
D)   profits decline as more workers are hired.
E)   productivity rises as more workers are hired.F) All of the above
G) A) and B)

Question 20

Marginal labour cost is

Accepted Answer

A)   identical to the wage rate.
B)   labour cost divided by the number of workers.
C)   the extra labour cost associated with hiring an extra worker.
D)   less than the value of marginal product.
E)   less than the wage rate.F) A) and B)
G) D) and E)

Exam 12: Labour Markets

An employer who acts on a prejudiced assumption and ___ hires a member of the group that experiences unfavourable discrimination is _ proven wrong in his assumption because he ___ observes whether a person from that group could have done the job.

Correct Answer
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Wage differentials occur for all the following reasons EXCEPT

Correct Answer
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The value of marginal product of labour curve is downward sloping because

Correct Answer
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Marginal labour cost is

Correct Answer
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Correct Answer
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In the labour market,the wage rate marginal labour cost for a .

Correct Answer
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-Refer to the diagram above.Starting at labour demand curve D,a reduction in worker productivity causes a(n) ______,which moves the equilibrium wage _ and the equilibrium employment level ______.

Correct Answer
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Marginal product is a measure of the output associated with .

Correct Answer
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Which of the following is NOT true of labour unions?

Correct Answer
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The combination of barriers to advancement in a chosen career and the supply response to those barriers produces

Correct Answer
verified

In many cases,labour represents 70% of all inputs in production.Firms will only hire the workers they need for their targeted level of production.Hence,a firm's demand for labour is a

Correct Answer
verified

If there are several firms in a particular labour market,the total demand for labour will then be ___________ of the individual firms' demands.

Correct Answer
verified

Changes in unemployment that occur at different times of the year is

Correct Answer
verified

Compulsory education in Canada is an attempt to provide some minimum level of

Correct Answer
verified

If a firm hires workers up to the point where the extra revenue generated by the last worker equals the extra cost,then the firm is

Correct Answer
verified

Correct Answer
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Which of the following is a characteristic of monopsony?

Correct Answer
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Which of the following is NOT a reason why union firms can successfully compete with non-union firms?

Correct Answer
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A winner-take-all labour market is one where

Correct Answer
verified

Setting aside concerns about demand,part of the difference in the earnings of auto mechanics and chemical engineers is

Correct Answer
verified

Exam 12: Labour Markets

An employer who acts on a prejudiced assumption and _____ hires a member of the group that experiences unfavourable discrimination is _____ proven wrong in his assumption because he _____ observes whether a person from that group could have done the job.

Correct AnswerverifiedShow Answer

Wage differentials occur for all the following reasons EXCEPT

Correct AnswerverifiedShow Answer

The value of marginal product of labour curve is downward sloping because

Correct AnswerverifiedShow Answer

Marginal labour cost is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the labour market,the wage rate __________ marginal labour cost for a __________.

Correct AnswerverifiedShow Answer

-Refer to the diagram above.Starting at labour demand curve D,a reduction in worker productivity causes a(n) __________,which moves the equilibrium wage _________ and the equilibrium employment level __________.

Correct AnswerverifiedShow Answer

Marginal product is a measure of the __________ output associated with __________.

Correct AnswerverifiedShow Answer

Which of the following is NOT true of labour unions?

Correct AnswerverifiedShow Answer

The combination of barriers to advancement in a chosen career and the supply response to those barriers produces

Correct AnswerverifiedShow Answer

In many cases,labour represents 70% of all inputs in production.Firms will only hire the workers they need for their targeted level of production.Hence,a firm's demand for labour is a

Correct AnswerverifiedShow Answer

If there are several firms in a particular labour market,the total demand for labour will then be ___________ of the individual firms' demands.

Correct AnswerverifiedShow Answer

Changes in unemployment that occur at different times of the year is

Correct AnswerverifiedShow Answer

Compulsory education in Canada is an attempt to provide some minimum level of

Correct AnswerverifiedShow Answer

If a firm hires workers up to the point where the extra revenue generated by the last worker equals the extra cost,then the firm is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of monopsony?

Correct AnswerverifiedShow Answer

Which of the following is NOT a reason why union firms can successfully compete with non-union firms?

Correct AnswerverifiedShow Answer

A winner-take-all labour market is one where

Correct AnswerverifiedShow Answer

Setting aside concerns about demand,part of the difference in the earnings of auto mechanics and chemical engineers is

Correct AnswerverifiedShow Answer

An employer who acts on a prejudiced assumption and ___ hires a member of the group that experiences unfavourable discrimination is _ proven wrong in his assumption because he ___ observes whether a person from that group could have done the job.

Correct Answer
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In the labour market,the wage rate marginal labour cost for a .

Correct Answer
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-Refer to the diagram above.Starting at labour demand curve D,a reduction in worker productivity causes a(n) ______,which moves the equilibrium wage _ and the equilibrium employment level ______.

Correct Answer
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Marginal product is a measure of the output associated with .

Correct Answer
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