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Unformatted text preview: Sample Questions for Final Exam 1. What best describes how a perfectly discriminating monopsonist makes its hiring decisions? (a) It hires different workers at different wages. (b) It hires workers to the point where the labor supply curve intersects the firms labor demand curve. (c) The firms marginal cost of labor equals the labor supply curve faced by the firm. (d) Both (a) and (b). (e) All of (a), (b), and (c) are true. 2. Suppose 1 in 80 workers die on the job each year in Coppers Coal Mine, while only 1 in 75 workers die on the job each year in Silver Creek Coal Mine. Moreover, the average salary at is $70 , 000 at Coppers Coal Mile while the average salary is $72 , 000 at Silver Creek Coal Mine. Given this information, what is the implied statistical value of a life of a miner? (a) $2 . 4 million (b) $5 . 4 million (c) $5 . 6 million (d) $7 . 2 million 3. The labor supply curve is given by E S =- 6 + 0 . 6 w and the labor demand curve is given by E D = 50- w , where w...
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This note was uploaded on 05/12/2010 for the course ECON 320 taught by Professor Shin during the Winter '08 term at University of Michigan.
- Winter '08