Labour Market Economics 8Th Canadian Edition By Dwayne Benjamin-Test Bank

Test Bank For Labour Market Economics 8Th Canadian Edition By Dwayne Benjamin

ISBN-10:1259030830 , ISBN-13:978-1259030833

Chapter 05

Demand for Labour in Aggressive Labour Markets

A number of Alternative Questions
The figures under give the manufacturing schedule and the product demand schedule for a agency, which has to determine what number of employees to rent.

Staff employed

Whole Bodily Product

Value of output

0

0

$10

1

10

$10

2

18

$10

3

25

$10

4

30

$10

5

34

$10

6

37

$10

1. If the wage = $40 for the time interval in query, then the variety of employees employed is:
A. 2
B. 3
C. 4
D. 5
E. 6

Blooms: Analyze
Problem: Medium
Studying Goal: 05-01 Perceive how corporations determine how a lot labour they should make use of to provide a specific amount of products or companies. The idea of labour demand supplies the instruments required to know how corporations make these choices.
Studying Goal: 05-02 Labour demand choices are made each concurrently with different enter choices, and after factories and machines have been constructed. Learn the way labour demand choices differ in these two circumstances, that’s, within the brief run versus the long term.
Matter: 05-02 Demand for Labour within the Brief Run
Matter: 05-03 Wages, the Marginal Productiveness of Labour, and Competitors within the Product Market

2. Assume that on the wage fee of $10 per hour, a agency is hiring 100 hours of labour per week. If the wage elasticity of demand is -1.2, what number of hours of labour will the agency shed if the wage will increase by $2 per hour?
A. 5 hours per week
B. 12 hours per week
C. 20 hours per week
D. 24 hours per week
E. 36 hours per week

Blooms: Analyze
Problem: Medium
Studying Goal: 05-04 Study in regards to the elements that have an effect on the elasticity of demand for labour. For instance, does it matter whether or not a agency operates as a monopolist or an ideal competitor within the product market?
Matter: 05-10 Elasticity of Demand for Labour

3. Take into account the mannequin for the derivation of demand for labour in a long-run context. At equilibrium, which of the next statements is fake?
A. A profit-maximizing agency will select the most cost effective capital-labour mixture that yields the optimum output.
B. On the optimum stage of output, labour is cheaper than capital.
C. If labour is twice as costly per unit than capital, then the marginal product of labour is twice as giant because the marginal product of capital.
D. If the agency had been to change its enter mixture by hiring roughly of an element, its income would fall.
E. The slope of the isoquant is the same as the slope of the isocost line.

Blooms: Perceive
Problem: Medium
Studying Goal: 05-02 Labour demand choices are made each concurrently with different enter choices, and after factories and machines have been constructed. Learn the way labour demand choices differ in these two circumstances, that’s, within the brief run versus the long term.
Matter: 05-04 Demand for Labour within the Lengthy Run

4. The first purpose why employees within the fast-food business are paid much less is that:
A. The demand for the product that they produce is kind of elastic, making the demand for labour wage elastic.
B. It’s simple to substitute capital for labour within the business, making the demand for labour wage elastic.
C. Labour prices comprise a big share of the employer’s bills, making the demand for labour wage inelastic.
D. These employees accumulate financial rents.
E. These employees are seldom unionized.

Blooms: Apply
Problem: Exhausting
Studying Goal: 05-04 Study in regards to the elements that have an effect on the elasticity of demand for labour. For instance, does it matter whether or not a agency operates as a monopolist or an ideal competitor within the product market?
Matter: 05-13 Elasticity of Demand for Output

5. If the employer is a monopolist within the output market:
A. There may be monopsony within the enter market.
B. The demand for labour is much less elastic than it will be if the agency operated in a aggressive output market.
C. The demand for labour is much less elastic than it will be if the agency operated in a aggressive enter market.
D. The agency’s demand curve for labour is equivalent to the case the place the agency is a competitor within the output market.
E. Not one of the above decisions are appropriate.

Blooms: Perceive
Problem: Medium
Studying Goal: 05-04 Study in regards to the elements that have an effect on the elasticity of demand for labour. For instance, does it matter whether or not a agency operates as a monopolist or an ideal competitor within the product market?
Matter: 05-10 Elasticity of Demand for Labour

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