Q2

For labour demand choices, the long run is defined as:

a. the time period over which all costs are fixed.

b. the period of time over which all inputs can vary.

c. the period of time over which fixed factors cannot vary.

d. the period of time over which variable factors can vary.

e. the period of time over which variable factors cannot vary.

Q4

Suppose that unit labour costs increase in Canada. What would be the expected impact?

a. An increase in the demand for Canadian labour

b. An increase in Canadian exports

c. A decrease in the demand for foreign labour

d. An increase in the wage elasticity of labour

e. A decrease in the demand for Canadian labour

Q7

Assume that the wage elasticity of labour demand is inelastic. Which of the following statements is true?

a. If the wage increases, then the total payroll, or wage bill, decreases.

b. If the wage increases, the quantity demanded of labour increases.

c. If the wage increases, the labour demand curve will shift to the left.

d. If the wage decreases, the labour demand curve will shift to the right.

e. If the wage increases, there is no change in quantity demanded

Q9

Which of the following events will tend to increase the wage elasticity of labour demand?

a. The share of labour costs among all costs of production rises.

b. It becomes more difficult to substitute between capital and labour.

c. The supply of capital, substitute factor, becomes almost vertical.

d. The price elasticity of demand for the output that the workers make becomes very inelastic.

e. The firm is no onger maximizing its profits.

Q11

Which of the following items are not included in unit labour costs?

.a. The wage elasticity of labour demand

b. The foreign exchange rate

c..Labour productivity

d. Wages in local currency

e. All of them are included

Q15

A perfectly competitive labour market would be characterized by:

a. the presence of labour unions.

b. wage-setting firms.

c. wage-taking firms.

d. the presence of monopsony power.

e. infinitely elastic labour demand curves.

Q16

The variable of unit labour costs is associated with which of the following?

a. The income effect of a wage change

b. The substitution effect of a wage change

c. The placement of the isocost curve

d. The degree of competitiveness in international trade

e. The wage elasticity of labour demand