Deck 11: The Labor Market

Question 1

The positive relationship between wages and work time measures what is called

A) The substitution effect of leisure for income
B) The income effect of leisure for income
C) The substitution effect of income for leisure
D) The income effect of income for leisure

Answer 1

C

Question 2

If an individual does not have a strong willingness to work more as wages increases, then the supply curve will be

A) Horizontal
B) Vertical
C) Steeply sloped
D) Gently sloped

Answer 2

C

Question 3

If there is a $6,000 wage difference between two occupations and a difference in mortality rate of 0.00099 per individual, the value of a statistical life is calculated to be:

A) $5.940 million
B) $6.061 million
C) $6.061 billion
D) $5.940 billion

Answer 3

B

Question 4

In the competitive labor market model, poor health will cause the labor supply curve

A) To shift to the right
B) To shift to the left
C) To remain stationary with movement up the supply curve
D) To remain stationary with movement down the supply curve

Question 5

The prediction of the impact of a labor union in a market is that unions

A) Increase wages and increase employment
B) Decrease wages and increase employment
C) Increase wages and restrict employment
D) Decrease wages and restrict employment

Question 6

The labor market is the institution by which workers and employers come together to engage in the production of output.

Question 7

Marginal productivity is determined by dividing total output by total input.

Question 8

The additional revenue obtained from employing one more unit of input is its marginal value product.

Question 9

Productivity is a key determinant in the employers' demand for labor.

Question 10

A demand curve for labor is the graphical representation of the relationship between the quantity of labor inputs a firm wishes to purchase per period of time and the price of that labor, ceteris paribus.

Question 11

An individual will increase work time hours from zero as long as the value of lost leisure is greater than the wage rate.

Question 12

The demand curve for labor will shift upward and to the left if labor becomes more productive.

Question 13

What happens to the market supply function of public health nursing labor if:
a. Wages increase in hospitals.
b. Licensing requirements are made stricter for public health nurses.
c. Nursing schools close down.
d. There is a minimum wage imposed on nurses.
e. The public image of public health nursing is improved.

Question 14

What is the purpose of budgeting in an organization.

Question 15

What are the prerequisites for an effective budget.