Illusatrate multiple choice questions with regarding labor demand curve perfectly competitive output and labor marketpalce.
1. A decrease in the demand for the final product will cause the firms short run labor demand curve to:
a. decrease
b. remain the same
c. change in an unpredictable manner
d. increase
2. The short run labor demand curve is downward sloping for a firm operating in a perfectly competitive output and labor market as a result of:
a. the law a diminishing returns.
b. the decrease in marginal revenue that occurs when output rises
c. both of the above are correct
d. none of the above are correct
3. Improvements in the productive technology that rise the marginal product of labor will cause a perfectly competitive firms short run labor demand curve to:
a. shift to the left
b. change in an unpredictable manner
c. become flatter
d. shift to the right
4. For a firm operating in a perfectly competitive labor market, but an imperfectly competitive output market, the short run labor demand curve is downward sloping due to:
a. the law of diminishing returns
b. the decrease in marginal revenue that occurs when output rises.
c. both of the above are correct
d. none of the above are correct
5. As the number of the firms in a labor market rises, the market labor demand will:
a. decrease
b. change in an unpredictable manner.
c. increase
d. remain the same
6. For a firm operating in a perfectly competitive output and labor markets, an optimal level of labor is used in the short run when:
a. MRP = W
b. MRP = MFC
c. P x MP = W
d. all of the above are correct
7. In a perfectly competitive labor market,
a. MFC > W
b. MFC < W
c. MFC = W
d. none of the above are correct
8. For a monopoly firm operating in a monopsony labor market, an optimal quantity of labor is hired in the short run when:
a. MRP = W
b. MRP= MFC
c. P x MP= W
d. all of the above are correct
9. In a monopsony labor market, MFC:
a. exceeds the wage.
b. may be greater than, less than, or equal to the wage.
c. is less than the wage.
d. equals the wage.
10. The introduction of an effective minimum wage law in a monopsony market will cause the optimal level of employment to:
a. decrease
b. change in a manner that cannot be determined without additional information
c. remain unchanged
d. increase