In the labor market equilibrium. what is the wage equal to? O a. At equilibrium, the wage is equal to the price of the product less the overhead of the producer 0 b_At equilibrium, the wage is equal to the price of the product O c. At equilibrium, the wage is equal to the marginal revenue product of labor 0 d_At equilibrium, the wage is equal to the level of employment What do we mean when we say that the demand for labor is "derived demand?" 0 a. The demand for labor depends on other necessary resources being available Q b_The demand for labor is not guaranteed; a product might not require labor to be produced O c. The demand for labor depends on the demand for the product that labor is producing O d_The demand for labor is seasonal : Immigration to the United States has decreased during the past ten years, contrary to media hysteria over immigrants. How does a reduction in the number of immigrants affect the equilibrium wage and employment in the US labor markets where those immigrants would be employed? 0 3. Employment goes down and wages go up 0 b_ Both wages and employment increase 0 c. Employment goes up and wages go down 0 d, Both wages and employment decrease In the US automobile market, consumers have a choice between cars made in Japan and cars made in the US. If the price of cars made in the Japan rises, what will happen to the wage of auto workers in the United States? Q a. The wage of US auto workers should not change at all 0 b'The wage of US auto workers will rise 0 c The wage of US auto workers will fall The behavioral equilibrium that ties the factor markets to the products can be described this way. The utility of products purchased in the product. market compensates people for the utility of leisure that they lose when they work C'- True CL False Many governments plae price floors on their agricultural products to make sure that their economy remains food self-sufficient. But a price floor is not an equilibrium price, and it will create a disequilibrium quantity. Which two of the following statements is true of a price floor? O a. A price floor will cause the demand for agricultural products to increase over time, relative to other products O b. A price floor will cause too much land to be devoted to agricultural use O c. A price floor will cause demand to be greater than supply, creating a shortage O d. A price floor will cause supply to be greater than demand, creating a surplus O e. A price floor will hurt the revenues of farmers What is the primary role of the price system in a market economy? O a. The role of the price system is to make sure that everyone who needs a product will be able to buy it O b. The role of the price system is to enable buyers and sellers to communicate with each other O c. The role of the price system is to make sure that everyone who produces the product will be able to make a profit on it O d. The role of the price system is to make sure that prices reflect the social value of each product