Part A: Brief Written Responses (25 points total, 10 questions worth 2.5 points each) Indicate whether each of the following statements is true or false or uncertain and briefly explain your answer. 1. For a person that is not working, his indifference curve (at zero hours of work) is steeper than the budget line. 2. The unemployment rate shows the proportion of people that are not working in the population. 3. An increase in childcare expenses (which are independent of income) is likely to lead to longer hours of work for those who participate in the labor market. 4. The difference between a conventional welfare program and a negative income tax program is that for the negative income tax program, the worker receives a wage supplement for each hour that he/she works. 5. For a worker who is 'at the corner equilibrium' i.e., he or she is not working, the marginal rate of substitution is greater than the wage rate in absolute value terms. 6. In the long-run, a firm hires workers such that the value of the marginal product of labor is equal to the price of labor. 7. The wage elasticity of demand for labor depends on the ratio of labor cost to total cost. 8. In order to obtain the scale effect of a wage change one traces the change of the quantity demanded of labor through a parallel shift in the isocost line. 9. If the quasi-fixed labor costs are very high, employers may try to meet their labor demand needs by requiring their employees to work longer hours. 10. If a monopsonist is able to perfectly discriminate its workers with respect to the wage it pays them, the equilibrium employment level will be the same as that under perfect competition