 |
1 | |
The substitution effect of a rise in the price of labour will ___________ the quantity of labour and the output effect will __________ it |
|
| | A) | increase, increase |
| | B) | increase, reduce |
| | C) | reduce, reduce |
| | D) | reduce, increase |
|
2 | |
A profit-maximising firm will hire labour until __________ equals the ____________ |
|
| | A) | marginal revenue, marginal cost |
| | B) | long run marginal revenue, long run marginal cost |
| | C) | labour output ratio, capital output ratio |
| | D) | marginal cost of labour, marginal revenue product |
|
3 | |
The downward sloping marginal physical product of labour is the firm's ___________ |
|
| | A) | supply of labour |
| | B) | short-run demand curve for labour |
| | C) | marginal cost of labour |
| | D) | marginal revenue product of labour |
|
4 | |
The participation rate in the labour force is affected by |
|
| | A) | higher real wages |
| | B) | lower fixed costs of working |
| | C) | lower non-labour income |
| | D) | changes in tastes between leisure and work |
| | E) | all of the above |
|
5 | |
Top footballers tend to earn more than lecturers because |
|
| | A) | footballers give more entertainment |
| | B) | lecturers are lazy |
| | C) | the labour markets are imperfect |
| | D) | top footballers are relatively scarce in relation to lecturers |
|
6 | |
Involuntary unemployment exists if workers |
|
| | A) | will not work at the offered wage |
| | B) | would work at the going wage but can't find jobs |
| | C) | will not work because the hours are anti-social |
| | D) | are not prepared to move house to get the job |
|
7 | |
Efficiency wages are _________ that raise ___________ |
|
| | A) | low wages, employment |
| | B) | high wages, labour supply |
| | C) | high wages, productivity |
| | D) | high wages, employment |
|
8 | |
Possible causes of involuntary unemployment are |
|
| | A) | minimum wage agreements |
| | B) | trade unions |
| | C) | scale economies |
| | D) | insider-outsider distinctions |
| | E) | efficiency wages |
| | F) | all of the above |
|
9 | |
As more labour is used the marginal physical product of labour increases |
|
| | A) | TRUE |
| | B) | FALSE |
|
10 | |
When we say that labour demand is a derived demand, we are referring to government initiatives to increase employment |
|
| | A) | TRUE |
| | B) | FALSE |
|
11 | |
The transfer earnings of a factor are the payments received in excess of its opportunity cost. |
|
| | A) | TRUE |
| | B) | FALSE |
|
12 | |
If a worker chooses not to work at the equilibrium wage rate they are involuntarily unemployed |
|
| | A) | TRUE |
| | B) | FALSE |
2002 A McGraw-Hill Online Learning Centre