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1. Marie is a college student looking for a job, but the avaliable jobs pay $9 per hour and she thinks it is worth working only if what she earns in an hour is enough to pay for a movie ticket (currently $10). Marie has a reservation wage of _______.
 
2. As a general rule, Marie will accept a job under which of the following circumstances? Check all that apply.
A. Nominal wages rise above her reservation wage, and she expects other prices to remain stable.
B. Movie ticket prices fall below the nominal wage.
C. Nominal wages rise above her reservation wage, and she expects other prices to rise proportionately.
D. The purchasing power of the wage rises to the value of a movie ticket.
 
3. Suppose falling aggregate demand causes firms to decrease production and hire fewer workers. Because firms need fewer employees, they can cut wages by 20% and still retain the labor they need. If Marie expects prices to remain the same, her new reservation wage will be ____.
 
4. If lots of people are like Marie and expect prices to remain the same, a decrease in aggregate demand that causes a fall in wages will ______ unemployment.
A. Increase
B. Decrease
C. Have no effect on
 

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Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019

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Related questions

1) Workers in one country are more productive than workers in another country because

-they have more complementary factors to work with.

-they have fewer complementary factors to work with.

-they are better motivated and paid.

2) Conservative economists would like to help younger workers get work experience by

-setting up a government jobs program.

-raising the minimum wage rate.

-lowering the minimum wage rate.

-passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.

3) The Supreme Court's "rule of reason"

-has been applied since the time of the Civil War.

-has been applied since 1945.

-was applied from 1911 to 1945.

-has been applied since 1970.

4) Which is the smallest American labor union?

-United Auto Workers

-The International Brotherhood of Teamsters

-The National Education Association

-The Service Employees International Union

5) The Change to Win coalition recently mounted a national recruiting drive, primarily targeting _______.

-All of these jobs were targeted

-cashiers

-janitors

-dishwashers

6) The demand for labor is

-determined by the supply of labor.

-determined by the wage rate.

-its marginal revenue product schedule.

-higher at lower wage rates.

7) Economic rent is associated with

-low wages.

-agricultural workers.

-factory workers.

-high wages.

8) Which statement is true?

-The most important influence on a firm's demand for a factor of production is the demand for the final product.

-All of the statements are true.

-A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price.

-If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers.

9) Amelia Earhart's nominal wages rose from $40,000 to $50,000, while the CPI rose by 20%. Her real wages

-rose.

-fell.

-cannot be calculated with the available information.

-stayed the same.

10) Which of the following is NOT an example of a vertical merger?

-The merger of two computer companies

-The merger of an automobile company and a tire company

-The merger of a computer company and a microelectronics chip company

-The merger of a shoe producer and a leather producer

11) The demand for a resource rises as

-its productivity falls and prices of substitutable resources falls.

-its productivity rises and the prices of substitutable resources falls.

-its productivity rises and the relative prices of substitutable resources rises.

-its productivity falls and the relative prices of substitutable resources falls.

12) Interlocking directorates were expressly forbidden under the

-neither the Sherman Act nor the Clayton Act.

-both the Sherman and Clayton Acts.

-Clayton Act.

-Sherman Act.

13) A firm's demand for labor is

-its MRP schedule.

-determined by the going wage rate.

-shaped mainly by the supply of labor.

14) If unions are successful in negotiating a wage higher than the market equilibrium wage, and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,

-all workers who join the union will be guaranteed a job.

-the quantity of labor demanded will exceed the quantity supplied at the union wage.

-the quantity of labor demanded will equal the quantity supplied at the union wage.

-the quantity of labor demanded will fall short of the quantity supplied at the union wage.

15) Which of the following offers the best example of derived demand?

-An increase in the demand for cars causes an increase in the demand for gasoline.

-An increase in the demand for movie tickets causes an increase in the demand for popcorn.

-A decline in the demand for cars causes an increase in the demand for bus rides.

-An increase in demand for movie tickets causes an increase in the demand for movie theatre workers.

16) A "bill of rights" for union members and a provision of union election procedures were two of the main provisions of the _____ Act.

-Landrum-Griffin

-Sherman Antitrust

-National Labor Relations

-Taft-Hartley

17) The decision to bring suit in an antitrust case is usually made by

-the Supreme Court or a lower federal court.

-the injured party.

-the Department of Commerce.

-the Department of Justice.

18) At its peak labor union membership was about _____% of the labor force.

-35

-45

-15

-25

19) Combinations in restraint of trade are prohibited by

-the Sherman Act.

-the Federal Trade Commission Act.

-The Clayton Act.

20) Which statement is true?

-American manufacturing wages are the highest in the world.

-American manufacturing wage rates are the lowest of any industrial country.

-Our manufacturing wage rates are the second highest in the world.

-None of the statements are true. MICROECONOMIC

home / study / business / economics / economics questions and answers / 1) workers in one country are more productive than workers in another country because -they ...

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Question: 1) Workers in one country are more productive than workers in another country because -they have ...

1) Workers in one country are more productive than workers in another country because

-they have more complementary factors to work with.

-they have fewer complementary factors to work with.

-they are better motivated and paid.

2) Conservative economists would like to help younger workers get work experience by

-setting up a government jobs program.

-raising the minimum wage rate.

-lowering the minimum wage rate.

-passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.

3) The Supreme Court's "rule of reason"

-has been applied since the time of the Civil War.

-has been applied since 1945.

-was applied from 1911 to 1945.

-has been applied since 1970.

4) Which is the smallest American labor union?

-United Auto Workers

-The International Brotherhood of Teamsters

-The National Education Association

-The Service Employees International Union

5) The Change to Win coalition recently mounted a national recruiting drive, primarily targeting _______.

-All of these jobs were targeted

-cashiers

-janitors

-dishwashers

6) The demand for labor is

-determined by the supply of labor.

-determined by the wage rate.

-its marginal revenue product schedule.

-higher at lower wage rates.

7) Economic rent is associated with

-low wages.

-agricultural workers.

-factory workers.

-high wages.

8) Which statement is true?

-The most important influence on a firm's demand for a factor of production is the demand for the final product.

-All of the statements are true.

-A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price.

-If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers.

9) Amelia Earhart's nominal wages rose from $40,000 to $50,000, while the CPI rose by 20%. Her real wages

-rose.

-fell.

-cannot be calculated with the available information.

-stayed the same.

10) Which of the following is NOT an example of a vertical merger?

-The merger of two computer companies

-The merger of an automobile company and a tire company

-The merger of a computer company and a microelectronics chip company

-The merger of a shoe producer and a leather producer

11) The demand for a resource rises as

-its productivity falls and prices of substitutable resources falls.

-its productivity rises and the prices of substitutable resources falls.

-its productivity rises and the relative prices of substitutable resources rises.

-its productivity falls and the relative prices of substitutable resources falls.

12) Interlocking directorates were expressly forbidden under the

-neither the Sherman Act nor the Clayton Act.

-both the Sherman and Clayton Acts.

-Clayton Act.

-Sherman Act.

13) A firm's demand for labor is

-its MRP schedule.

-determined by the going wage rate.

-shaped mainly by the supply of labor.

14) If unions are successful in negotiating a wage higher than the market equilibrium wage, and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,

-all workers who join the union will be guaranteed a job.

-the quantity of labor demanded will exceed the quantity supplied at the union wage.

-the quantity of labor demanded will equal the quantity supplied at the union wage.

-the quantity of labor demanded will fall short of the quantity supplied at the union wage.

15) Which of the following offers the best example of derived demand?

-An increase in the demand for cars causes an increase in the demand for gasoline.

-An increase in the demand for movie tickets causes an increase in the demand for popcorn.

-A decline in the demand for cars causes an increase in the demand for bus rides.

-An increase in demand for movie tickets causes an increase in the demand for movie theatre workers.

16) A "bill of rights" for union members and a provision of union election procedures were two of the main provisions of the _____ Act.

-Landrum-Griffin

-Sherman Antitrust

-National Labor Relations

-Taft-Hartley

17) The decision to bring suit in an antitrust case is usually made by

-the Supreme Court or a lower federal court.

-the injured party.

-the Department of Commerce.

-the Department of Justice.

18) At its peak labor union membership was about _____% of the labor force.

-35

-45

-15

-25

19) Combinations in restraint of trade are prohibited by

-the Sherman Act.

-the Federal Trade Commission Act.

-The Clayton Act.

20) Which statement is true?

-American manufacturing wages are the highest in the world.

-American manufacturing wage rates are the lowest of any industrial country.

-Our manufacturing wage rates are the second highest in the world.

-None of the statements are true. MICROECONOMIC

Exam coming up pretty soon and I just need to see the step by step solutions to these problems in order to make sure I am doing them correctly.
Greatly appreciated!

1. Workers in a certain job are trained by the company, and the company calculates that to recoup its investment costs the workers’ wages must be $5 per hour below their marginal productivity. Suppose that after training, wages are set at $5 below marginal productivity, but that developments in the product market quickly (and permanently) reduce marginal productivity by $2 per hour. If the company does not feel it can lower wages or employee benefits, how will its employment level be affected in the short run? How will its employment level be affected in the long run? Explain, being sure to define what you mean by short run and long run!

2. The manager of a major league baseball team argues: “Even if I thought Player X was washed up, I couldn’t get rid of him. He’s in the third year of a four-year, $24 million deal. Our team is in no position to eat the rest of his contract.” Analyze the manager’s reasoning using economic theory.

3. Assume that the labor supply curve to a firm is the one given in Problem 1 above that is, (E=5W). If the firm’s marginal revenue product of labor (MRPL) 240 – 2E, what is the profit-maximizing level of employment (E* ) and what is the wage level (W * ) the firm would have to pay to obtain E *workers?

4. Major league baseball teams scout and hire younger players whom they then train in the minor leagues for a period of three to five years. Very few of their trainees (perhaps 5 percent) actually make it to the major leagues, but if they do they are bound to the team that owns their contract for a period of five years. After five years, the player can become a "free agent" and choose any major league team on which to play.Keeping in mind that the major league teams pay the costs of, but derive no revenues from, their minor league teams, what would be the most important predictable effects of allowing players to become free agents immediately upon entry into the major leagues?

5. A minimum wage will influence different labor markets differently. In four separate market diagrams, illustrate the following cases: (i) a competitive market in which causes a 50% reduction in labor demand; (ii) a competitive market in which the minimum wage does not causes a % reduction in labor demand; (iii) a monopsony market where the minimum wage increases employment; (iv) a monopsony market where the minimum wage decreases employment. (Hint under the monopsony model of minimum wages, the effective marginal expenditure curve has a horizontal range at the level of the minimum wage and then jumps to rejoin the original marginal expenditure curve.)

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