Test Bank for Labor Economics --
Chapter 1 Quiz Questions And Answers
9th Edition by George Borjas
Which is not a decision made by potential workers in the United States?
- Deciding whether or not to participate in the labor force.
- Determining how to divide one's time between work and leisure.
- Choosing how much to produce to maximize firm profit.
- Choosing how much education to receive.
- Deciding which occupation to pursue. - ANSChoosing how much to produce to maximize firm
profit.
Which of the following is not a leading actor in labor markets?
- Consumers
- Firms
- Workers
- Governments
- Unions - ANSConsumers
The labor demand curve shows how many workers the firm is willing to hire:
- at any particular time.
- at a particular amount of labor supplied.
- at any given wage.
- into high-skill jobs.
- when demand for the firm's output is low. - ANSat any given wage.
An outward shift in the labor demand curve implies that:
- employers are now looking to hire workers at any given wage.
- employers are now looking to hire more workers if the wage increases.
- employers are now looking to hire fewer workers regardless of the wage.
- demand for the firm's output likely fell.
- a greater number of workers are now more willing to work at any given wage. - ANSemployers
are now looking to hire workers at any given wage.
The labor supply curve shows how many workers are willing to work
- in a particular industry.
- at any given time.
- at the minimum wage.
- at any given wage.
, - in order to maximize the firm's profit. - ANSat any given wage.
An upward-sloping labor supply curve implies that
- a firm can always hire more workers, even without increasing the wage.
- more workers are willing work when wages are low.
- more workers are willing to work as the market wage increases.
- the labor supply is fixed.
- there is a continuously increasing demand for labor. - ANSmore workers are willing to work as
the market wage increases.
Labor economics concerns
- how labor markets work.
- the study of education decisions.
- the study of how households decide where to live.
- the study of income inequality.
- All of these are labor economics concerns. - ANSAll of these are labor economics concerns.
A firm's labor demand curve is typically
- a vertical line.
- a horizontal line.
- upward sloping.
- downward sloping.
- associated with a slope equal in absolute value to the slope of the labor supply curve. -
ANSdownward sloping.
The typical labor supply curve
- is u-shaped.
- equals the marginal product of labor.
- slopes up.
- slopes down.
- depends on the firm. - ANSslopes up.
Which of the following affects the wage a firm is willing to pay its workers?
- the productivity of workers
- consumer demand for the goods and/or services that the firm creates
- the amount of fringe benefits the firm is required by law to pay
- the level of payroll taxes the firm must pay
- All of the above affect the wage a firm is willing to pay its workers. - ANSAll of the above affect
the wage a firm is willing to pay its workers.
Which of the following affects a person's decision to work?
- the price of consumption goods relative to the wage
- the person's income from nonlabor sources
- how much the person enjoys working
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