chapter_13_-_labor_market_and_classical_model2

# chapter_13_-_labor_market_and_classical_model2 - Test Bank...

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Test Bank Macroeconomics: Theory and Policy Chapter 13: Labor Market and the Aggregate Supply Function: The Classical Model B. Modjtahedi Question 1 At the macroeconomic level, demand for labor is: A. Total number of filled and unfilled jobs available. B. Total number of unfilled jobs available. C. Total number of people who have jobs. D. Total number of people who demand jobs from business firms. E. None of the above. Question 2 In the labor market: A. Household demand labor and firms supply labor. B. Firms demand labor and household supply labor. C. Supply of labor comes from firms D. Demand for labor equals the number of people who are unemployed. E. None of the above. L MPL 1 8 2 7 3 6 4 5 5 4 6 3 7 2 8 1 9 0 Question 3 The table above shows the number of workers demanded by a firm and the corresponding MPL data. The nominal wage rate is \$10 and the price of the output is \$2 per unit. The real wage equals: A. 0.50. B. 2.00 C. 4.00 D. 5.00 E. None of the above. Question 4 The table above shows the number of workers demanded by a firm and the corresponding MPL data. The nominal wage rate is \$10 and the price of the output is \$2 per unit. How many workers will the firm hire to maximize its profit? A. 2 workers. B. 3 workers.

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C. 4 workers. D. 5 workers. E. None of the above. Question 5 The table above shows the number of workers demanded by a firm and the corresponding MPL data. The nominal wage rate is \$10 and the price of the output is \$2 per unit. What is the value of the marginal product of the 7 th worker? A. \$2. B. \$4. C. \$5. D. \$10. E. None of the above. Question 6 The table above shows the number of workers demanded by a firm and the corresponding MPL data. The nominal wage rate is \$10 and the price of the output is \$2 per unit. Suppose that this firm is one of 1,000,000 identical firms in the economy? What is the total quantity of labor demanded in this economy? A. 1,000,000 workers B. 2,000,000 workers C. 3,000,000 workers D. 4,000,000 workers E. None of the above. Question 7 The supply of labor is the same thing as A. The total number of jobs available in the economy. B. The labor force. C. The number of vacant jobs in the economy. D. The number of jobs firms offer to households. E. None of the above. Question 8 The supply of labor and real wage will be positively related if: A. The substitution effect of a change in the real wage is less than the income effect. B. The substitution effect of a change in the real wage is greater than the income effect. C. The substitution effect of a change in the real wage is equal to the income effect. D. The substitution effect of a change in the real wage is zero. E. None of the above. Question 9 Which of the following events could cause the demand for labor function to shift to the right? A. An increase in the amount of capital.
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## This note was uploaded on 03/24/2010 for the course ECON Econ1B taught by Professor Baghermodjtahedi during the Spring '09 term at UC Davis.

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chapter_13_-_labor_market_and_classical_model2 - Test Bank...

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