B will decrease c may either increase or decrease d

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B. will decrease. C. may either increase or decrease. D. will diverge from labor productivity growth. 12. If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will: A. be unaffected. B. rise by 3 percent. C. fall by 3 percent. D. rise by 11 percent. 13. If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real wage will: A. be unaffected. B. rise by 4 percent. C. fall by 4 percent. D. rise by 8 percent. 14. Long-run real wages in the United States have: A. risen, because growth in the demand for labor has exceeded growth in the supply of labor. B. risen, because the supply of labor has fallen over time. C. fallen, because growth in the supply of labor has exceeded growth in the demand for labor. D. fallen, because the demand for labor has fallen over time. 15. Since 1960, real hourly compensation in the United States has approximately: A. remained the same. B. risen by 40 percent. C. doubled. D. tripled. 16. Marginal revenue product (MRP) of labor refers to the: A. increase in total revenue resulting from the sale of an additional unit of output. B. amount by which a firm's total resource cost increases when it employs one more unit of labor. C. increase in total revenue resulting from the hire of one more unit of labor. D. price at which additional units of labor can be employed in a monopsonized labor market. 17. Marginal resource cost refers to the: A. increase in total revenue resulting from the sale of the extra output of one more worker. B. price at which additional units of a resource can be hired in an imperfectly competitive resource market. C. increase in total cost resulting from the production of one more unit of output. D. amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.
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18. If a firm is hiring a certain type of labor under purely competitive conditions: A. its labor demand curve will be perfectly elastic at the market-determined wage rate. B. the labor supply curve will lie above the marginal labor cost curve. C. the labor supply and marginal labor (resource) cost curves will coincide and be upsloping. D. the labor supply and marginal labor (resource) cost curves will coincide and be perfectly elastic. 19. The labor supply curve for a particular occupation is upsloping because: A. higher wages will be needed to attract workers from other occupations. B. lower wages will be needed to increase employment. C. higher wages will enable some workers to afford more leisure. D. the labor demand curve is downsloping. 20. The market supply curve for labor is upsloping because: A. of diminishing returns. B. of the opportunity cost of labor in housekeeping, leisure, or alternative employments.
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B will decrease C may either increase or decrease D will...

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