Questions

I Question 1 Wage rate is determined in a competitive labour market by G) the market supply curve alone. the slope of market demand curve alone. G) the Labour Department and is based on the cost of living in the area. the intersection of the market supply and demand curves for labor. In a perfectly competitive market, an individual firm faces a perfectly inelastic labor supply curve. a perfectly vertical labor supply curve. a perfectly elastic labor supply curve. none of these. Question 3 The individual firm operating in a perfectly competitive labor market ([9 can hire more labor only by offering a higher wage. faces an inelastic demand for labor. will pay less to the additional labor employed. can hire all the labor it wants at the going market wage. Question 4 1 Point As the wage rate falls, other things constant, perfectly competitive firms employ A fewer workers. B more capital. C the same number of workers. D more workers.Question 5 Which ofthe following would not shift the labor supply curve in a particular market? The wage rate in the particular market falls. Wage rates in markets using similar labor rise. Working conditions within the market become less desirable. Wage rates in other markets fall. An increase in labor supply generates increased unemployment. lower wages. an offsetting increase in the demand for labor. a decrease in the quantity demanded for labor. Question 7 The labor supply in a market will decrease when (ID the price of leisure activities fall. the demand for labor falls in the market. (9 workers receive better employment opportunities in other markets. workers are overqualified for the market