An increase in the marginal productivity of labor will tend to A. shift the labo
ID: 1194381 • Letter: A
Question
An increase in the marginal productivity of labor will tend to
A. shift the labor supply curve rightward if the change is temporary.
B. result in an increase in employment if the change is temporary.
C. result in an increase in employment if the change is permanent.
D. all of the above.
When some jobs are inherently more risky or unpleasant than other jobs, different workers will be paid different wages because of
A. differences in human capital.
B. differing access to capital.
C. compensating differentials
D. discrimination.
Which of the following will shift a worker’s labor supply curve to the left?
A. Higher nonlabor income.
B. A lower wage rate, assuming the substitution effect dominates the income effect.
C. New machinery that substitutes for labor and lowers its marginal product.
D. A decrease in the marginal value of leisure.
Consider the indifference curve budget line model of labor supply, and assume consumption and leisure are both normal goods. A higher wage rate would result in
A. more consumption and less leisure.
B. a reduction in the worker’s marginal value of leisure.
C. reduced consumption if the income effect is larger than the substitution effect.
D. increased labor only if the substitution effect outweighs the income effect.
If a worker has chosen a quantity of labor where the marginal value of leisure exceeds the wage rate, she would be better off by
A. choosing less leisure.
B. providing fewer hours of labor.
C. providing more hours of labor.
D. staying at this combination of labor and consumption.
In the indifference curve budget line model of labor supply,
A. labor is measured along the horizontal axis and leisure is measured along the vertical axis.
B. labor is measured along the horizontal axis and consumption is measured along the vertical axis.
C. consumption is measured along the horizontal axis and labor is measured along the vertical axis.
D. consumption is measured along the horizontal axis and leisure is measured along the vertical axis.
Explanation / Answer
(1)An increase in the marginal productivity of labor will tend to
A. shift the labor supply curve rightward if the change is temporary
(2) When some jobs are inherently more risky or unpleasant than other jobs, different workers will be paid different wages because of -
compensating differentials
(3) the following will shift a worker’s labor supply curve to the left
A lower wage rate, assuming the substitution effect dominates the income effect.
(4)indifference curve budget line model of labor supply, and assume consumption and leisure are both normal goods. A higher wage rate would result in
a reduction in the worker’s marginal value of leisure.
(5) indifference curve budget line model of labor supply,
labor is measured along the horizontal axis and consumption is measured along the vertical axis.
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