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Please read the following: Chapter 30-31 1. After carefully reading each question, mark your answers in the appropriate spaces in the on-line testing system at www.agu.edu. 2. Submit any inquiries through "Contact Us" on the webpage, or by contacting Student Services at studentservices@agu.edu. MULTIPLE CHOICE: Question 1: The willingness and ability to work specific amounts of time at alternative wage rates is known as: (a) Labor supply ( b ) Labor demand (c) Derived supply (d) Derived demand Question 2: The opportunity cost of working is the: (a) Wage rate ( b ) Earnings that could be made in an alternative job (c) Amount of leisure time that must be given up in the process (d) Amount of consumption that is made possible Question 3: The wage rate is: (a) Not related to the value of leisure because people need to relax (b ) Not related to labor supply because people must work to survive (c) The opportunity cost of labor (d) The payment for labor Question 4: As more hours are worked, the marginal utility of leisure time tends to: (a) Increase ( b ) Decrease (c) Stay the same (d) Decrease initially, but then increaseQuestion 5: Campbell loves to work. He does not receive any enjoyment from leisure time. The last dollar that he earns each year means just as much to him as the first dollar. Which of the following best describes the shape of Campbell's labor supply curve? (a) Upward-sloping to the right ( b ) Vertical (c ) Downward-sloping to the right Horizontal Question 6: Higher wage rates allow a person to reduce the hours worked without losing income. This is known as the: (a) Substitution effect ( b ) Income effect Law of diminishing marginal utility (d) Law of diminishing marginal leisure Question 7: The market supply of labor is: (a) The sum of all jobs created in the economy each year (b ) Different for each individual based on training and education levels (c) The total of all goods produced in the economy each year d) The total quantity of labor that workers are willing and able to supply at alternative wage rates in a given period Question 8: Which of the following is not true about the demand for factors of production? (a) It is derived from the demand for the goods and services the firm produces ( b ) It is a function of diminishing marginal physical product It depends on the firm's expected sales and output d) It is a function of the elasticity of supply Question 9: The marginal revenue product of labor curve is the firm's: (a) MPP of labor curve divided by the wage rate ( b ) Marginal revenue curve (c) Demand curve for labor (d) Marginal physical product multiplied by the wage rate Question 10: A competitive firm should continue to hire workers until the MRP is equal to: (a) Demand ( b ) The number of workers hired The market wage rate (d) ZeroQuestion 1 1: Question 12: Question 13: Question 14: Question 15: Question 16: if the marginal revenue product of labor improves, which of the following shifts In the labor market should occur? (a) (b) (C) (d) Supply of labor should shift to the left Demand for labor should shift to the left Supply of labor should shift to the right Demand for labor should shift to the right Cost efciency refers to the: (a) (b) (C) (d) Amount of output associated with an additional dollar spent on input Effectiveness of labor in reducing production costs MPP of labor divided by the product price Ability to produce at a level of output where the wage rate is equal to or less than the MRP The cost efciency of labor is equal to the: (a) (b) (C) (d) Marginal cost of output MPP of labor times the wage rate MPP of labor divided by the wage rate MRP of labor divided by the unit price of labor If the cost efficiency of labor equals 2, then: (a) (b) (C) ((0 Labor costs 100 percent more than the revenue it generates The wage rate is 100 percent more than the product price Each extra dollar spent on wages returns 2 units of additional output The product price is 200 percent of the wage rate A production process is defined as: (a) (b) (C) (d) The manufacturing of goods and services A specific combination of resources used to produce a good or service A means by which labor generates revenue A means by whichjobs are created for workers Labor supply can be defined as the: (a) (b) (C) (d) Total number of people who are employable Total number of people in paid employment Willingness and ability of people to work specific amounts of time at alternative wage rates in a given period of time, ceterisparibus Total number of individuals who are either employed or actively seeking employment . ' wa es, Question 17: As long as additional workers are attracted Into the labor force by higher g the market labor supply curve is: (a) Horizontal (b) Perfectly inelastic (c) Downward-sloping (d) Upward-sloping Question 18: The demand for labor determines the: (a) Total number of people who want to work (b) Number of available jobs (c) Willingness and ability of people to work at alternative wage rates (d) Minimum wage rate Question 19: Because rms are willing to hire additional workers at lower wages, the market labor demand curve is: (a) Vertical (b) Perfectly elastic (c) Downward-sloping (d) Upward-slopin g Question 20: Walmart, the largest employer in the United States, employs: (a) Approximately 2 percent of the labor force (b) Less than 1 percent of the labor force (c) More than 15 percent of the labor force (d) Approximately 10 percent of the labor force Question 21: The largest labor union in the United States represents approximately: (a) 10 percent of the labor force (b) 5 percent of the labor force (c) 15 percent of the labor force (d) 1 percent of the labor force Question 22: Public sector unions now: (a) Represent a smaller percentage of workers than private sector unions (b) Are growing at a smaller rate than private sector unions (c) Represent over ve times the percentage of workers in private sector unions (d) Are illegal in the United States Question 23: A market with one buyer and one seller is a: (a) Bilateral monopsony (b) Multiopoly (c) Bilateral monopoly (d) Multilayer monopoly Question 24: In a bilateral monopoly, wages and employment are determined by: (a) Negotiation (b) The intersection of market supply and demand (0) The intersection of marginal cost and marginal revenue product (d) The intersection of marginal wage and market demand Question 25: Collective bargaining: (a) Involves direct negotiations between labor unions and employers ' (b) Takes place when unions compete to see who should represent workers m a given industry . (C) Occurs when employers determine which union should represent their workers ((1) Is the process by which unions decide which company should be the focus of wage negotiations Question 26: A market that experiences both strikes and lockouts at different times is most likely characterized by: (a) Monopoly (b) Monopsony (c) Bilateral monopoly (d) Monopolistic competition Question 27: When management shuts down a plant and does not allow workers to perform theirjobs, there is a: (a) Walkout (b) Lockout (c) Strike (d) Strikebreaker Question 28: The effect of union exclusion of nonunion workers is to: (a) Increase the shortages of nonunion workers (b) Reduce the wages of nonunion workers (c) Increase the number of jobs for nonunion workers (d) Increase the surplus of union workers Question 29: The exercise of union power will tend to: (a) Reduce the supply of labor available to nonunion industries (b) Cause prots to be higher in unionized industries (c) Increase the supply of labor available to nonunion industries (d) Cause product prices to be lower in unionized industries Question 30: The marginal factor cost for labor is: (a) The change in total costs that results from a one-unit increase in the quantity of a factor employed (b) The net gain to a monopolist seller of labor if an additional unit of labor is hired (c) The demand for labor (d) The supply of labor