Econ Ch. 8 the Labor Market

22 terms by walkermac15 

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T/F: the concept of derived demand means that the demand for bricklyaers is determined by the demand for new brick houses

true

T/F: All workers are better off when a minimum wage is imposed

False

Working may seem less appelaing because of the opportunity cost it creates, which is the

leisure that must be given up

Which of the following is a reason why workers typically require higher wages in order to work additional hours

the increasing opportunity costs of labor, the increasing value of leisure time for gone, the law of diminishing marginal utility applied to additional income

A firm's demand for labor is downard sloping because

the marginal physical product of labor decreases as more labor is hired

The Marginal physical product of labor decrease as more labor is hired because of

the law of diminishing returns

A firm should continue to hire workers until the

MRP is equal to the market wage rate

The university of Florida football coach is paid nine times more than the university's president because the coach

brought more revenue to the university than the president

Which of the following is true about equilibrium market wage

there is no unemployment in this market at the equilibrium wage

To maintain above-equilibrium wages, unions use which of the follwing forms of exclusion

union membership, required apprenticeship programs, employment agreements negotiated with employers

The effect of union exclusion on nonunion workers is to

lower the wages of nonunion workers

When the MRP of a worker is difficult to measure wages can be determined by

the wages the worker would receive in his best alternative job

Labor Supply

the willingness and ability to work a specific amount of time at alternative wage rates

The total quantity of labor that workers are willing and able to supply at alternative wage rates in a given timer period is called

market supply

The demand for labor and other factors of production result from

derived demand

In most situations, marginal physical product declines as

more people are hired

We measure workers value to the firm by his

MPP

Define MArginal Revenue Product

the change in total revenue associated by additional unit of output

What is the Equilibrium Wage

the wage at which the quantity of labor supplied in a given time period equal the quantity of labor demanded

The Minimum wage is set by whom

congress

Labor unions attempt to

get higher wages and benefits

To get and maintain an above-equilibrium wage, a union must exclude

non-union workers

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