This paper circulates around the core theme of ECON 232 If the market wage for each worker is $100 per day together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Use the following to answer questions 1-3:
Table: Sunshine Flower Vase Co.
Number of Workers
Daily
3
4
5
6
7
8
Total Revenue ($)
1,350
1,580
1,760
1,885
1,965
2,015
1. (Table: Sunshine Flower Vase Co.) Refer to the table. If the market wage for each
worker is $100 per day, how many workers will the company hire?
A) 4
B) 5
C) 6
D) 7
2. (Table: Sunshine Flower Vase Co.) Refer to the table. If the market wage for each
worker rose from $100 to $125 per day, how many workers would the firm hire?
A) 4
B) 5
C) 6
D) 7
3. (Table: Sunshine Flower Vase Co.) Refer to the table. If there is competition from new
immigrants that lowers the market wage for each worker from $100 to $70 per day, how
many workers would the firm hire?
A) 4
B) 5
C) 6
D) 7
Page 1
Use the following to answer questions 4-6:
Table: Excellence Publishing
Number of Workers Per Year
Number of Books Edited Per Year
4
5
6
7
8
9
16,000
19,000
21,200
22,800
23,700
24,200
4. (Table: Excellence Publishing) Refer to the table. Each edited book sells for $50. What
is the marginal product of labor for the sixth worker?
A) $21,200
B) $110,000
C) $45,000
D) $2,200
5. (Table: Excellence Publishing) Refer to the table. Each edited book sells for $50. How
many people will the company hire per year as editing staff if the annual salary is
$47,000 per staff member?
A) 5
B) 6
C) 7
D) 8
6. (Table: Excellence Publishing) Refer to the table. Initially each edited book sells for
$50. Suppose that there is an increase in the demand for edited books, such that each
edited book now sells for $70. How many people will the company hire per year as
editing staff if the salary is $47,000 per staff member?
A) 5
B) 6
C) 7
D) 8
Page 2
7. The three-cylinder mill revolutionized sugar production around the year 1500, allowing
sugar cane to be crushed rapidly using animal power (before then, the cane had to be
ground by hand with a mortar-and-pestle). It took only three slaves to operate the
machine, a small fraction of what it took to do the same job by hand. What happened to
the price of slaves for sugar production?
A) It increased, because the marginal product of labor increased.
B) It decreased, because you needed fewer slaves to crush your sugar cane.
C) It stayed the same, because the factor from (a) balances out the factor from (b).
D) It decreased, because the marginal product of labor increased. .
8. Why might an individual’s labor supply curve bend backwards?
A) As wages rise above a threshold level, the individual will decide to work harder.
B) As wages rise above a threshold level, the individual may opt for more leisure time.
C) As wages rise above a threshold level, firms limit the amount of hours that a
worker can work.
D) When wages rise, firms hire fewer workers.
9. The introduction of risk into a job ______ labor ______.
A) increases; demand
B) increases; supply
C) decreases; demand
D) decreases; supply
10. The introduction of fun into a job ______ labor ______.
A) increases; demand
B) increases; supply
C) decreases; demand
D) decreases; supply
11. The advent of office computers is thought by some economists to have ______ the
returns to education.
A) increased
B) decreased
C) maintained
D) eliminated
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12. It is possible for an individual to have a downward-sloping labor supply curve if:
A) the wage increases enough that a worker may decide to work less and enjoy the
income.
B) higher wages increase the return to effort, leading to increased hours of work.
C) all other supply curves slope upward.
D) the standard work-week is 40 hours.
13. Suppose a firm pays white workers $40 an hour but pays black workers who are as
productive as the white workers $25 an hour.
A) This firm could increase profits by hiring more black workers at $25 and using
fewer white workers.
B) This firm is practicing statistical discrimination.
C) This firm is a profit maximizer because it is saving money on the hiring of black
workers.
D) This is an example of employer discrimination, which means that the wage
differentials are likely to not be competed away.
14. Which of the following best describes the influence of labor unions on workers?
A) The harm of labor unions to workers is both immediately evident and longer term.
B) The benefit of labor unions to workers is both immediately evident and longer
term.
C) The benefit of labor unions to workers is immediately evident, while the harm is
longer term and harder to see.
D) Labor unions provide neither benefit nor harm to workers.
15. Which of the following statements is TRUE?
I.
The presence of a union will decrease the supply of labor.
II. Unions increase the wages of their members by reducing employment.
III. Countries with the highest unionization rates have the highest wage levels.
A) I and III only
B) II and III only
C) I only
D) II only
16. Why is it not completely accurate to say that women earn less than men?
A) Because women systematically earn more than men.
B) Because this statistic compares the wages of all women with the wages of all men.
C) Because statistics show that single women earn more than single men.
D) Because no studies have been carried out on wage differentials between the sexes.
Page 4
17. If the marginal product of labor is constant in labor, then a market labor demand curve
is:
A) positively sloped.
B) negatively sloped.
C) flat.
D) varied.
18. Before the shipping container, cargo had to be removed from a ship piece by piece, a
very time-consuming process requiring a lot of dockworkers to accomplish. The
shipping container allows a single dockworker to accomplish what it took several
workers to do by moving many pieces of cargo all at once. The West Coast
Dockworkers’ Union was concerned about the change and demanded compensation
from an association of shipping companies resulting in the Mechanization and
Modernization Agreement of 1961. But, if automation increased wages, which of the
following best explains why the workers resisted change?
A) The shipping container would make their job more pleasant, resulting in smaller
wages.
B) They were unionized.
C) The machines would require additional labor market issues to operate.
D) The least productive members were concerned about automation.
19. Labor unions are often anti-immigration because immigration tends to depress wages
by:
A) increasing demand for labor.
B) increasing supply of labor.
C) decreasing demand for labor.
D) decreasing supply of labor.
20. Which of the following best explains why assembly-line workers in the United States
earn significantly more than assembly-line workers in Mexico?
I.
The supply of low-skilled laborers, such as those that work on assembly lines, is
higher in Mexico.
II. The demand for assembly-line workers is higher in the United States.
III. Assembly-line workers are more productive in the United States.
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III
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21. One factor that does NOT lower wages for women as a group is that:
A) employers discriminate against women.
B) men are more productive than women on average.
C) women tend to have less job experience than men of the same age.
D) women are more productive as men on average.
22. A union can raise wages by:
A) increasing the demand for labor.
B) reducing the supply of labor.
C) promoting a smoother labor market.
D) demanding better working conditions.
23. If the price of output in an industry fall
s, firms in that industry will ______ labor.
A) increase their demand for
B) increase their supply of
C) decrease their demand for
D) decrease their supply of
24. The marginal product of labor curve is the same as the:
A) marginal cost curve for labor.
B) wage curve for labor.
C) labor supply curve.
D) labor demand curve.
25. Why might equally competent and hard-working janitors earn more in the United States
than in India?
A) India does not have labor markets.
B) Economics is not the same in the United States as it is in India.
C) An hour of janitorial service raises less revenue in the United States because the
U.S. firm is more productive.
D) An hour of janitorial service raises more revenue in the United States because the
U.S. firm is more productive.
26. Which of the following is NOT the main driver behind the process of improving the
quality of American jobs?
A) government regulation
B) labor unionization
C) increasing wealth
D) profit incentive
Page 6
27. The marginal product of labor is:
A) the additional output produced by an extra worker.
B) the increase in costs borne by the firm when one extra worker is hired.
C) always greater than the wage earned by one additional worker.
D) the increase in firm revenue when an additional worker is employed.
28. Aside from your skills and how hard you work, what does your marginal product of
labor reflect?
A) your supply of labor
B) the productivity of everyone else in your economy
C) your chance of death on the job
D) nothing
29. If Bob’s wages ______ and he works ______ hours, his labor supply curve slopes
downward.
A) increase; fewer
B) increase; more
C) decrease; fewer
D) increase by 10%; 10% more
30. Suppose that a public accounting firm plans to hire some accountants for tax season.
What will happen to the marginal product of labor as the firm hires more and more
accountants?
A) The marginal product of labor will increase because preparing tax returns requires
high levels of education and experience.
B) The marginal product of labor will increase because completing and filing tax
returns requires team production techniques.
C) The marginal product of labor will decline because each subsequent accountant
that is hired will be assigned to work on less important (i.e., less lucrative) tax
returns.
D) The marginal product of labor will not change because the practice of accounting is
quite standardized, forcing all accountants to follow the uniform procedures set
forth in federal tax law.
Page 7
31. Table: Mr. B’s Restaurant
Number of
cooks
1
2
3
4
Increase in revenue
from hiring an
additional cook
(per hour)
$120
80
35
15
The second column in this table shows the firm’s ______. At a wage of $28 an hour, Mr.
B should hire ______ cooks.
A) marginal disutility of work; 4
B) marginal product of labor; 3
C) marginal disutility of work; 2
D) marginal cost of labor; 3
32. Which of the following may NOT explain why tall people tend to have higher wages
than short people?
A) Employer-discrimination against short people.
B) Taller people might get more respect from their subordinates.
C) Taller people may have more self-confidence.
D) Employers subconsciously think that taller people are less trouble.
33. Why do similar jobs have similar compensation packages?
I. The law of demand and supply will ensure that the salaries will be similar over time.
II. Wages and “fun” adjust between jobs until compensation packages are similar.
III. Because exactly the same skills are being applied.
A) I only
B) I and II only
C) II and III only
D) I, II, and III
34. A market labor supply curve:
A) is always positively sloped.
B) is always negatively sloped.
C) is always vertical.
D) can be positively sloped, vertical, or negatively sloped at different ranges.
Page 8
35. In a market economy discrimination by employers will NOT:
A) causes the wages of the discriminated group to fall because of decreased demand
for their services.
B) reduces the firm’s profits.
C) tends to disappear over time because of the profit motive.
D) increases the firm’s profits.
36. Human capital labor market issues:
A) refers to workers who do highly repetitive work, which requires little thought and
creativity.
B) include the equipment, tools, and computers that make workers more productive.
C) include the skills, knowledge, and experience that people obtain.
D) refers to a worker in a capital intensive industry.
37. If the market wage for electrical engineers in the United States is $50 per hour, then we
know that the marginal product of electrical engineers is:
A) exactly $50 an hour.
B) approximately $50 an hour.
C) less than $50 an hour.
D) at least $50 an hour.
38. A Levitt and Fryer study tested how much African-American names mattered in the
long run for earnings. Their study found that:
I. résumés with names like Lakisha and Jamal got many fewer interview requests.
II. having an African-American name does not matter in the long run for earnings.
III. once the neighborhood the person comes from is controlled for, there is not a
significant difference in earnings.
A) I only
B) I, II and III
C) I and III only
D) II and III only
39. A newly imposed binding minimum wage:
A) increases employment.
B) decreases employment.
C) maintains employment.
D) leads to full employment.
Page 9
40. A crime scene cleaner earns about three to four times more than an office cleaner, even
though neither job requires a college degree. This difference in wages:
A) is solely because of differences in demand.
B) results from discrimination because most office cleaners are women.
C) reflects a compensating differential.
D) is caused by differences in labor market issues.
