MODULE 71: The Market for Labor

Printed Page 713(cont.)

Tackle the Test: Multiple-Choice Questions

Question

Which of the following is necessarily true if you work more when your wage rate increases?
A.
The income effect is large.
B.
The substitution effect is small.
C.
The income effect dominates the substitution effect.
D.
The substitution effect dominates the income effect.
E.
The income effect equals the substitution effect.

Which of the following is necessarily true if you work more when your wage rate increases?
Question
Which of the following will cause you to work more as your wage rate decreases?
1. the income effect
2. the substitution effect
3. a desire for leisure
A.
I only
B.
II only
C.
III only
D.
I and II only
E.
I, II, and III
Which of the following will cause you to work more as your wage rate decreases?
Question

Which of the following will shift the supply curve for labor to the right?
A.
a decrease in the labor force participation rate of women
B.
a decrease in population
C.
an increase in wealth
D.
a decrease in the opportunity cost of leisure
E.
an increase in labor market opportunities for women

Which of the following will shift the supply curve for labor to the right?
Question

An increase in the wage rate will
A.
shift the labor supply curve to the right.
B.
shift the labor supply curve to the left.
C.
cause an upward movement along the labor supply curve.
D.
cause a downward movement along the labor supply curve.
E.
have no effect on the quantity of labor supplied.

An increase in the wage rate will
Question

The quantity of labor demanded in an imperfectly competitive factor market is determined by the intersection of which two curves?
A.
marginal revenue and marginal factor cost
B.
marginal product and supply
C.
supply and marginal revenue product
D.
marginal revenue product and marginal factor cost
E.
marginal product and marginal factor cost

The quantity of labor demanded in an imperfectly competitive factor market is determined by the intersection of which two curves?