22 terms

Econ Ch. 8 the Labor Market

T/F: the concept of derived demand means that the demand for bricklyaers is determined by the demand for new brick houses
T/F: All workers are better off when a minimum wage is imposed
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
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
Labor unions attempt to
get higher wages and benefits
To get and maintain an above-equilibrium wage, a union must exclude
non-union workers