1.The market supply curve for labor is upward-sloping because
a) As the wage rises, most workers want to work fewer hours.
b) As the wage falls, most workers want to work more hours.
c) As the wage rises, most workers are willing to work more hours.
d) For most workers, as the wage rises, the preference for leisure time increases.
2. As marginal physical product diminishes, marginal revenue product
a) Also diminishes.
b) Is not affected.
c) Rises at a diminishing rate and eventually falls.
d) Rises.
3. For a minimum wage to have any impact on the labor market, it must be set at a level
a) Higher than the equilibrium wage
b) Higher than MPP.
c) Higher than MRP.
d) Consistent economic growth.
4. Because a union is a form of monopoly, it must be concerned about the _____ slope of the demand curve for labor.
a) Vertical
b) Horizontal
c) Downward
d) Upward
1.The market supply curve for labor is upward-sloping because
a) As the wage rises, most workers want to work fewer hours.
b) As the wage falls, most workers want to work more hours.
c) As the wage rises, most workers are willing to work more hours.
d) For most workers, as the wage rises, the preference for leisure time increases.
2. As marginal physical product diminishes, marginal revenue product
a) Also diminishes.
b) Is not affected.
c) Rises at a diminishing rate and eventually falls.
d) Rises.
3. For a minimum wage to have any impact on the labor market, it must be set at a level
a) Higher than the equilibrium wage
b) Higher than MPP.
c) Higher than MRP.
d) Consistent economic growth.
4. Because a union is a form of monopoly, it must be concerned about the _____ slope of the demand curve for labor.
a) Vertical
b) Horizontal
c) Downward
d) Upward
