# An increase in the wage rate the quantity of labor

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MACRO ECONOMICS STUDY GUIDE

65 )   Loafing the Day Away bread company sells fresh bread for \$ 4.00 a loaf . If the last worker hired a dds an additional 7 loaves of bread per hour , then the money wage rate is ____ per hour .
A ) \$ 4.00
B ) \$ 7.00
C ) \$ 14.00
D ) \$ 28.00
66 )   The Bubby Gum factory produces bubble gum . Joanne is one of the employees , and she produce 10 packs of bubble gum per hour . Joanne ’s money wage rate is \$ 12 per hour . Based on this inform ation , the Bubby Gum company should
67 )   The Bubby Gum factory produces bubble gum . Joanne is one of the employees , and she produces 10 packs of bubble gum per hour . Joanne ’s money wage rate is \$ 12 per hour . If a packet of bubble gum sells for \$ 1.00 , then
68 )   To maximize profits , firms hire labor as long as
69 )   An increase in the wage rate ____ the quantity of labor supplied and __ __ the quantity of labor de manded .
A ) increases ; increases
B ) increases ; decreases
C ) decreases ; increases
D ) decreases ; decreases
Answer:  B )   increases ; decreases
70 )   For a household , the opportunity cost of not working is the
71 )   Which of the following statements is true ?
72 )   The supply of labor is defined as the relationship between the real wage rate and the
73 )   Households increase the quantity of labor supplied when the
A ) real wage rate rises because the opportunity cost of not working falls .
B ) nominal wage rate rises because the real wage rate must also rise .
C ) real wage rate rises because the opportunity cost of not working rises .
D ) nominal wage rate falls because the opportunity cost of not working rises .
Answer:  C )   real wage rate rises because the opportunity cost of not working rises .
74 )   Households increase the quantity of labor supplied when
75 )   Holding all other influences constant , the quantity of labor supplied in a given time period depen ds
76 )   The labor market is in equilibrium whenever
77 )   A surplus of labor is eliminated by ____ in the real wage rate and a shortage of labor is eliminate d by ____ in the real wage rate .
A ) an increase ; an increase
B ) an increase ; a decrease
C ) a decrease ; an increase
D ) a decrease ; a decrease
Answer:  C )   a decrease ; an increase
78 )   A surplus in the labor market indicates that the
83 )   The tables above show a nation ’ s labor demand and labor supply schedules and its production fu nction . Given the equilibrium in the labor market , potential GDP is
79 )   When the labor market is in equilibrium ,
80 )   When the labor market is in equilibrium ,
A ) there is excess labor supplied , which keeps real GDP less than potential GDP .
B ) there is full employment , which means that real GDP equals potential GDP .
C ) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP .
D ) the real wage rate rises to allow real GDP to equal potential GDP .
81 )   The table above shows the labor demand and labor supply schedules for a nation . The equilibriu m real wage rate is ____ and the equilibrium quantity of labor is ____ billions of hours per year .
82 )   The tables above show a nation ’ s labor demand and labor supply schedules and its production fu nction . The equilibrium real wage rate is ____ and the equilibrium quantity of labor is ____ billio n hours per year .
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Chapter 2 / Exercise 18
Elementary and Intermediate Algebra: Algebra Within Reach
Larson Expert Verified
69) An increase in the wage rate ____ the quantity of labor supplied and ____ the quantity of labor demanded.A) increases; increasesB) increases; decreasesC) decreases; increasesD) decreases; decreases
70) For a household, the opportunity cost of not working is the
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 18
Elementary and Intermediate Algebra: Algebra Within Reach
Larson Expert Verified
71) Which of the following statements is true?
72) The supply of labor is defined as the relationship between the real wage rate and the
73) Households increase the quantity of labor supplied when theA) real wage rate rises because the opportunity cost of not working falls.B) nominal wage rate rises because the real wage rate must also rise.C) real wage rate rises because the opportunity cost of not working rises.D) nominal wage rate falls because the opportunity cost of not working rises.
74) Households increase the quantity of labor supplied when
75) Holding all other influences constant, the quantity of labor supplied in a given time period depends
76) The labor market is in equilibrium whenever
77) A surplus of labor is eliminated by ____ in the real wage rate and a shortage of labor is eliminated by ____ in the real wage rate.A) an increase; an increaseB) an increase; a decreaseC) a decrease; an increaseD) a decrease; a decrease
78) A surplus in the labor market indicates that the
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