4 Written Questions

1. The quantities of labor employers are willing and able to hire at alternative wage rates in a given time period, ceteris paribus.
2. The demand of labor and other factors of production results from (depends on) the demand for final goods and services produced by theses factors.
3. The change in total revenue associated with one additional unit of input. (MRP= ^ TO/^ Q of Labor).
4. The margianl physical product of a variable inout declines as more of it is employed with a given quantity of other (fixed) inputs.

3 Multiple Choice Questions

1. The willingness and ability to work specific amounts of time at alternative wage rates in a given time period, ceteris paribus.
   1. Opportunity cost
   2. Opportunity wage
   3. Labor supply
   4. Demand for labor
2. The total quantity of labor that workers are willing and able to supply at alternative wage rates in a given time periodm ceteris paribus.
   1. Demand for labor
   2. Labor supply
   3. Opportunity wage
   4. Market Supply of Labor
3. The highest wage an individual would earn in his or her best alternative job.
   1. Opportunity cost
   2. Labor supply
   3. Equilibrium wage
   4. Opportunity wage

3 True/False Questions

1. Equilibrium wage → The highest wage an individual would earn in his or her best alternative job.

   True        False

2. Marginal Physical Product (MPP) → The change in total revenue associated with one additional unit of input. (MRP= ^ TO/^ Q of Labor).

   True        False

3. Opportunity cost → The highest wage an individual would earn in his or her best alternative job.

   True        False