Wage rate is determined in a competitive labour market by

1. the market supply curve alone.
2. the slope of market demand curve alone.
3. the Labour Department and is based on the cost of living in the area.
4. the intersection of the market supply and demand curves for labor.

In a perfectly competitive market, an individual firm faces

1. a perfectly inelastic labor supply curve.
2. a perfectly vertical labor supply curve.
3. a perfectly elastic labor supply curve.
4. none of these.

The individual firm operating in a perfectly competitive labor market

1. can hire more labor only by offering a higher wage.
2. faces an inelastic demand for labor.
3. will pay less to the additional labor employed.
4. can hire all the labor it wants at the going market wage.

As the wage rate falls, other things constant, perfectly competitive firms employ

1. fewer workers.
2. more capital.
3. the same number of workers.
4. more workers.

Which of the following would not shift the labor supply curve in a particular market?

1. The wage rate in the particular market falls.
2. Wage rates in markets using similar labor rise.
3. Working conditions within the market become less desirable.
4. Wage rates in other markets fall.

An increase in labor supply generates

1. increased unemployment.
2. lower wages.
3. an offsetting increase in the demand for labor.
4. a decrease in the quantity demanded for labor.

The labor supply in a market will decrease when

1. the price of leisure activities fall.
2. the demand for labor falls in the market.
3. workers receive better employment opportunities in other markets.
4. workers are overqualified for the market.

Manufacturing of iPhones requires soldering the parts together. This work can be done by labor or by robots (capital). More robots will be hired when the price of labor increases. This is known as

1. the effect of changing labor productivity.
2. marginal revenue product.
3. the complementary effect.
4. the substitution effect.

Ajax Corporation has just decided to let managers work from home one day a week. This decision will make working conditions better and will

1. cause the demand curve for labor for managers to increase.
2. increase the elasticity of demand for labor for managers.
3. lead to an increase in the supply of labor for managers.
4. leave the supply curve of labor unchanged.

Which one of the following is not related to individuals' decisions in the labor market?

1. Entry or exit from the labor force.
2. Choice of occupation/industry.
3. Number of hours/days to work.
4. Number of workers to hire.

Education, health and labor productivity

1. are parts of the quantity dimension of labor supply.
2. are parts of the quality dimension of labor supply.
3. are unrelated to the labor supply decisions.
4. are parts of both the quantity and quality dimensions of labor supply.

Hiring and training costs as well as legislatively imposed costs such as minimum wage and health safety requirements

1. affect firms' decision about how much labor to hire.
2. affect the workers' decision about how much labor to supply.
3. fall under dimensions of labor supply.
4. are borne by the government and firms have nothing to do with these.

According to a recent study, biggest source of income for individual Canadians was found to be the

1. employment income.
2. investment income.
3. government transfer payments.
4. pension income.

Labour market is different from the output market in the sense that

1. demand for labor is derived from the output market.
2. labor market is perfectly competitive whereas the output market is not.
3. output market has a price whereas there is no price in the labor market.
4. labor market is free of restrictions while output market has many restrictions.

Current policy issues in the labor market are

1. changes in unemployment rate, job stability, impact of employment insurance.
2. wage polarization, non-wage benefits, male-female wage differentials.
3. pay equity legislation, retirement, pension.
4. All of the above.