Question 1

If a large number of skilled workers retire at about the same time through early retirements or buyouts, what will happen to the wages of skilled workers, other things being equal?

Accepted Answer

The answer of If a large number of skilled workers...

Question 2

The firm represented in the table below participates in a perfectly competitive market for their product as well as for labor.Complete the chart and answer the following questions. $\begin{array}{|c|c|c|c|c|c|}
\hline\
\begin{array}{c}
\text { Quantity of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Output }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Product of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Product } \
\text { Price }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue } \
\text { Product of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Wage Rate } \
\text { (MRC) per } \
\text { day }
\end{array} \
\hline 0 & 0 & \cdots & \cdots-- & \cdots \
\hline 1 & 10 & 10 & \$ 10 & 100 & \$ 55 \
\hline 2 & 19 & & \$ & \
\hline 3 & 27 & & \$ & \
\hline 4 & 34 & & \$ & \
\hline 5 & 40 & & \$ & \
\hline 6 & 45 & & \$ & \
\hline 7 & 49 & & \$ & \
\hline 8 & 52 & & \$ & \
\hline
\end{array}$ 
a. If the firm represented in the table above is currently employing two units of labor, should they hire a third? Why or why not?
b. If the firm represented in the table above is currently employing four units of labor, should they hire a fifth? Why or why not?
c. If the firm represented in the table above is currently employing seven units of labor, should they hire an eighth? Why or why not?
d. At what level of employment will the firm be maximizing profit? If they hire one additional unit of labor, what will be the cost?

Accepted Answer

The answer of The firm represented in the table below...

Question 3

Explain why an increasing divorce rate tends to increase the inequality of income.

Accepted Answer

The answer of Explain why an increasing divorce rate tends...

Question 4

Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $50 per day? Why or why not?

Accepted Answer

The answer of Would the owner of a profit-maximizing fast-food...

Question 5

Explain what is meant by "derived demand" as it relates to factors of production.

Accepted Answer

The answer of Explain what is meant by "derived demand"...

Question 6

What income groups are most likely to benefit from state and federal subsidies to higher education? Why?

Accepted Answer

The answer of What income groups are most likely to...

Question 7

Would an increase in the productivity of labor lead to an increase or a decrease in the demand for labor? Why?

Accepted Answer

The answer of Would an increase in the productivity of...

Question 8

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Accepted Answer

The answer of "Not all government programs benefit the relatively...

Question 9

Figure 10-B 
-Refer to Figure 10-B.Which of the following situations is relevant to Case A?

Accepted Answer

The answer of Figure 10-B 
-Refer to Figure 10-B.Which of...

Question 10

Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $98 per day? Why or why not?

Accepted Answer

The answer of Would the owner of a profit-maximizing fast-food...

Question 11

Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product.

Accepted Answer

Monopolistic competition is a market structure characterized by many small firms selling differentiated products.

Question 12

Women in the workplace seem to be narrowing the wage gap with males.What might be the cause of this shift during the past 25 years?

Accepted Answer

The answer of Women in the workplace seem to be...

Question 13

In many communities across the country it is very difficult for firms to hire sufficient numbers of entry level workers.If firms do not wish to raise money wages, what else might they do to attract workers?

Accepted Answer

The answer of In many communities across the country it...

Question 14

If the private-sector wage of biologists was significantly greater than that of music professors, what might happen if a university tried to pay its entire faculty the same salary?

Accepted Answer

The answer of If the private-sector wage of biologists was...

Question 15

Figure 10-B 
-Refer to Figure 10-B.Which of the following situations is relevant to Case B?

Accepted Answer

The answer of Figure 10-B 
-Refer to Figure 10-B.Which of...

Question 16

Figure 10-B 
-Refer to Figure 10-B.Which of the following situations is relevant to Case A?

Accepted Answer

In Case A, there is a shift to the left in the labor supply curve, indicating a decrease in the quantity of labor supplied at every given wage rate. This could be caused by a decrease in nonwage income, which would make working for pay less attractive relative to other income sources.

Question 17

Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs.Why?

Accepted Answer

The answer of Even though non-union workers maybe just as...

Question 18

How does age affect the amount of income people earn?

Accepted Answer

The answer of How does age affect the amount of...

Question 19

Monopolistic competition is more similar to monopoly than any other industry model.

Accepted Answer

Monopolistic competition involves many firms competing against each other by differentiating their products. Each firm has some market power, but it is still a highly competitive industry with low barriers to entry. Monopoly, on the other hand, involves one firm dominating the market and having total control over price and output. Therefore, monopolistic competition is more similar to perfect competition than monopoly.

Question 20

Monopolistic competition differs from perfect competition only with regard to the number of firms participating in the market.

Accepted Answer

Monopolistic competition differs from perfect competition in multiple aspects, including product differentiation, the existence of some market power, and non-price competition. The number of firms participating in the market is just one of those aspects.

Quiz 10: Labor Markets, Income Distribution, and Poverty