Question 1

Bob and Mary each have a Ph.D.in economics.Bob has a job in privateindustry at which he earns $90,000 a year.Mary earns half that much as acollege professor.Which of the following could not explain Mary's careerchoice?

Accepted Answer

Diminishing marginal utility refers to the idea that as a person consumes more of a good or service, the additional satisfaction or utility they derive from each additional unit diminishes. This concept is not directly relevant to explaining Mary's career choice. The other options all provide plausible explanations for her decision to become a college professor despite earning less than Bob.

Question 2

Jobs in rural areas generally pay lower wages than jobs in urban areasbecause there are limits to labor mobility.

Accepted Answer

Labor mobility refers to the ability of workers to move from one job or location to another. In rural areas, there may be fewer job opportunities and a smaller pool of potential workers, which can result in lower wages. Additionally, workers may be less likely to relocate to urban areas due to factors such as the higher cost of living or a preference for a rural lifestyle.

Question 3

)A stock market crash that reduces the value of an individual's trust fundwould tend to

Accepted Answer

The answer of )A stock market crash that reduces the...

Question 4

A large inheritance from a relative will tend to

Accepted Answer

The answer of A large inheritance from a relative will...

Question 5

Which of the following could not contribute to differences in wage ratesacross markets?

Accepted Answer

The distribution of a new national help-wanted newspaper could not contribute to differences in wage rates across markets as it does not affect any underlying factors that influence wage rates, such as education requirements or job discrimination. It simply provides a new avenue for job seekers to find employment opportunities.

Question 6

Sharon wants a career as an accountant.During the summer she turns downa job painting houses at $6 an hour to work in an accounting office for $4 anhour.Which of the following would not explain her choice?

Accepted Answer

The law of diminishing marginal utility refers to the fact that as the consumption of a good increases, the satisfaction or utility derived from each additional unit of the good decreases. This is not relevant to Sharon's decision to choose accounting over painting houses.

Question 7

Which of the following would reduce the supply of an athletic trainer'sservices at today's wage rate, other things constant?

Accepted Answer

If the trainer's future earning possibilities go down due to a new negative image associated with this work, the trainer may choose to leave the profession or seek alternative employment, leading to a reduction in the supply of athletic trainer services.

Question 8

Other things equal, the wage rate will be higher in a job that requires closemonitoring by a supervisor since few individuals are eager to work in suchan environment.

Accepted Answer

Close monitoring by a supervisor is often viewed as stressful and undesirable, leading to a smaller pool of individuals willing to work in such jobs. This limited supply of labor increases the wage rate that firms must offer to attract workers to these positions.

Question 9

The market labor supply curve is usually __________ over the relevantrange of market wage rates.

Accepted Answer

The answer of The market labor supply curve is usually...

Question 10

An increase in the wage rate will decrease the demand for labor.

Accepted Answer

According to the law of demand, as the wage rate increases, the quantity demanded for labor will decrease, but not the overall demand for labor. Employers will demand less labor at higher wages, but they may still have a demand for a certain amount of labor at the new, higher wage rate.

Question 11

College students often spend summers in internships that pay little or noincome because internships provide benefits in the form of higher futureincomes.

Accepted Answer

This statement is true. Internships provide valuable hands-on experience and networking opportunities that can lead to higher-paying job offers in the future. So, even though they may not pay well (or at all), the benefits of an internship can still be significant for college students.

Question 12

Jobs that pay higher salaries must be riskier than lower­paying professions.

Accepted Answer

The answer of Jobs that pay higher salaries must be...

Question 13

A person who wins a large sum of money in the state lottery is likely to

Accepted Answer

When a person wins a large sum of money in the state lottery, they are likely to decrease the amount of work offered at each wage rate. This is because they now have a large amount of money that provides them with an alternative source of income. As a result, they may choose to work less or even quit their job altogether, substituting leisure time for market work.

Question 14

The market labor supply curve is

Accepted Answer

The market labor supply curve is the sum of individual labor supply curves at each wage rate. This is because at different wage rates, individuals may choose to supply different quantities of labor, and when added together, this forms the market labor supply curve.

Question 15

The equilibrium wage

Accepted Answer

The equilibrium wage is the wage at which the market demand for labor equals the market supply of labor. It is determined by the intersection of the market demand and supply curves. Therefore, option D is the correct choice.

Question 16

Which of the following could explain an increase in demand for labor?

Accepted Answer

Additional training that increases the productivity of each unit of labor in this market would lead to an increase in demand for labor as the firms would want to hire more workers to take advantage of the increased productivity.

Question 17

Which of the following could explain a decrease in the demand for labor ina particular job?

Accepted Answer

A decrease in productivity of each unit of labor will lead to a decrease in demand for labor in the market, as employers will not require as many workers to produce the same amount of output.

Question 18

Which of the following could explain an increase in the equilibrium wagerate for a particular job?

Accepted Answer

The answer of Which of the following could explain an...

Question 19

An increase in labor supply will increase the equilibrium wage rate.

Accepted Answer

An increase in labor supply will shift the labor supply curve to the right, which will lower the equilibrium wage rate unless the increase in labor supply is accompanied by a greater increase in labor demand.

Question 20

The market labor supply curve is the sum of

Accepted Answer

The answer of The market labor supply curve is the...

Quiz 12: Labor Markets and Labor Unions

Bob and Mary each have a Ph.D.in economics.Bob has a job in privateindustry at which he earns $90,000 a year.Mary earns half that much as acollege professor.Which of the following could not explain Mary's careerchoice?

Jobs in rural areas generally pay lower wages than jobs in urban areasbecause there are limits to labor mobility.

) A stock market crash that reduces the value of an individual's trust fundwould tend to

A large inheritance from a relative will tend to

Which of the following could not contribute to differences in wage ratesacross markets?

Sharon wants a career as an accountant.During the summer she turns downa job painting houses at $6 an hour to work in an accounting office for $4 anhour.Which of the following would not explain her choice?

Which of the following would reduce the supply of an athletic trainer'sservices at today's wage rate, other things constant?

Other things equal, the wage rate will be higher in a job that requires closemonitoring by a supervisor since few individuals are eager to work in suchan environment.

The market labor supply curve is usually __________ over the relevantrange of market wage rates.

An increase in the wage rate will decrease the demand for labor.

College students often spend summers in internships that pay little or noincome because internships provide benefits in the form of higher futureincomes.

Jobs that pay higher salaries must be riskier than lowerpaying professions.

A person who wins a large sum of money in the state lottery is likely to

The market labor supply curve is

The equilibrium wage

Which of the following could explain an increase in demand for labor?

Which of the following could explain a decrease in the demand for labor ina particular job?

Which of the following could explain an increase in the equilibrium wagerate for a particular job?

An increase in labor supply will increase the equilibrium wage rate.

The market labor supply curve is the sum of

Quiz 12: Labor Markets and Labor Unions

Bob and Mary each have a Ph.D.in economics.Bob has a job in privateindustry at which he earns $90,000 a year.Mary earns half that much as acollege professor.Which of the following could not explain Mary's careerchoice?

Jobs in rural areas generally pay lower wages than jobs in urban areasbecause there are limits to labor mobility.

) A stock market crash that reduces the value of an individual's trust fundwould tend to

A large inheritance from a relative will tend to

Which of the following could not contribute to differences in wage ratesacross markets?

Sharon wants a career as an accountant.During the summer she turns downa job painting houses at $6 an hour to work in an accounting office for $4 anhour.Which of the following would not explain her choice?

Which of the following would reduce the supply of an athletic trainer'sservices at today's wage rate, other things constant?

Other things equal, the wage rate will be higher in a job that requires closemonitoring by a supervisor since few individuals are eager to work in suchan environment.

The market labor supply curve is usually __________ over the relevantrange of market wage rates.

An increase in the wage rate will decrease the demand for labor.

College students often spend summers in internships that pay little or noincome because internships provide benefits in the form of higher futureincomes.

Jobs that pay higher salaries must be riskier than lower­paying professions.

A person who wins a large sum of money in the state lottery is likely to

The market labor supply curve is

The equilibrium wage

Which of the following could explain an increase in demand for labor?

Which of the following could explain a decrease in the demand for labor ina particular job?

Which of the following could explain an increase in the equilibrium wagerate for a particular job?

An increase in labor supply will increase the equilibrium wage rate.

The market labor supply curve is the sum of

Jobs that pay higher salaries must be riskier than lowerpaying professions.