11. In the expression MRPL = MPL×MR = MCL, a. player salaries are represented wi
ID: 1135008 • Letter: 1
Question
11. In the expression MRPL = MPL×MR = MCL,
a. player salaries are represented within MPL
b. MR is assumed to be equal to zero
c. MPL indicates how the employment of one more worker affects total output (winning)
d. MPL is assumed to be increasing as more labor is employed
12. The analysis of markets for sports stars and schoolteachers
a. assumes a greater supply of sports stars than schoolteachers
b. assumes a greater elasticity of demand for sports stars than for schoolteachers
c. assumes a greater demand for schoolteachers than for sports stars
d. illustrates how sports stars will have higher equilibrium employment than schoolteachers
13. Viewed as a monopsony employer of sports talent, a sports organization
a. pays a constant wage (salary) at all possible levels of employment
b. incurs marginal labor costs that exceed the wage (salary)
c. exhibits a demand for sports talent that is flat
d. employs sports talent where the market labor supply curve intersects the marginal cost of labor curve
14. A worker with a backward-bending labor supply curve exhibits
a. a dominant income effect at all wage levels
b. a dominant substitution effects at all wage levels
c. a dominant income effect at lower wage levels and a dominant substitution effect at higher wage levels
d. a dominant substitution effect at lower wage levels and a dominant income effect at higher wage levels
15. Analysis of the determination of league expansion fees assumes that
a. competition amongst expansion owners drives the fee to zero
b. league expansion will financially benefit all existing team owners equally
c. league expansion will benefit some existing team owners more than it will others
d. the hypothetical expansion owner’s time horizon consists of just two periods: the present year and the following year
Explanation / Answer
11.
MRPL=MPL*MR=MCL is the labor market equilibrium where demand equals supply
MPL is the marginal product of labor which implies how the employment of an additional unit of worker affects the level of output.
the correct option is c
12.
The analysis of the market for sports stars and school teachers assumes a greater demand for school teachers than sports stars.
the correct option is b
13.
In the monopsony market, there is a single buyer hence firms can set price in the factor market rather of the market determined price. Implies pays a constant wage for the all workers at all levels of employment.
the correct option is a
14.
A worker with a backward bending supply curve has dominant substitution effect at the lower level of wages and income effect dominates at a higher level of wages. As wages rise, workers can afford to take out time for leisure than just work for another hour.
the correct option is d
15.
Analysis of league expansion fees determination assumes that the league expansion will benefit the existing team owners equally.
the correct option is c
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