Sample Exam3 Questions

Sample Exam3 Questions - Sample Questions for Final Exam 1....

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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. 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 is the wage in $ per hour. A payroll tax of $8 per unit is imposed on the worker. What part of this tax is paid by the firm? (a) $3 (b) $4 (c) $5 (d) $6 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 is the wage in $ per hour. A payroll tax of $8 per unit is imposed on the worker. What part of this tax is paid by the worker? (a) $3 (b) $4 (c) $5 (d) $6 4. Suppose 40 percent of all potential workers are highly skilled and contribute $50 , 000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30each year....
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This note was uploaded on 01/19/2012 for the course ECON 320 taught by Professor Shin during the Fall '08 term at University of Michigan.

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Sample Exam3 Questions - Sample Questions for Final Exam 1....

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