9: Labor Markets

Question 1

For a business that takes the wage rate as given the demand curve for labor is given by its

Answer 1

Marginal reveune product curve

Question 2

When rage rate increases the substitution effect will cause work blank and the income effect would case work blankv

Answer 2

More; less

Question 3

Getting capital income will effect labor supply behavior how?

Answer 3

The income effect will cause lower quantity supplied

Question 4

Backward bending labor supply curve means

Answer 4

Income effect is larger than sub effect and labor supply of elasticity is negative

Question 5

Labor supply elasticity is postive that means?

Answer 5

Labor supply slopes upward as move left to right, sub effect is greater than income, if wage increases work more

Question 6

Since 1970s the percent difference between woman and men income has

Answer 6

Decreased

Question 7

Price increases what would this do to equil wage rate

Answer 7

Wage rate will increase

Question 8

Labor supply cut in half what will this do to equil wage rate?

Answer 8

Wage rate will increase

Question 9

Compensating wage rate differential

Answer 9

More dangerous jobs get paid higer

Question 10

Min wage higer than equil wage. Decrease in number of workers this will be larger if

Answer 10

Elasitcity of demand for workers in the industry is larger

Question 11

Union spill over will tend to blank wages of non union workers and the union threat will blank the wages of non unionon workers

Answer 11

Decrease; increase

Question 12

Monopsony: workers will earn blank than if competitive?

Answer 12

Less than

Question 13

Since 1970 the gap between black men and white men has blank and the gap between black and white women has blank

Answer 13

Decreased; increased

Question 14

Since the 1950 the fractiln of the us labor force that is a member of a labor union has

Answer 14

Decreased