If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely increase the wage rate of position A relative to position B?
a. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned.
b. Position A is a safe office job; position B requires the employee to operate a dangerous saw.
c. Position A offers steady employment, whereas employees holding position B are often laid off.
d. Position A offers more sick leave and more paid holidays.
A
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An increase in the demand for a product will shift the demand for labor used to produce the product:
a. downward. b. leftward. c. rightward. d. none of these, the curve will not shift.
The industry demand for labor in a competitive labor market
a. is the same as the individual demand for labor in a perfectly competitive market b. is a horizontal curve at the market wage rate c. slopes upward when there are diminishing returns d. is the sum of the individual firms' demand curves for labor e. is downward sloping only if all firms that employ labor are identical
Suppose a company sells its product for $5.00 . It's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. The company should hire the additional worker only if the wage rate is
a. $5.00 or less per hour. b. $1.00 or more per hour. c. $25.00 or less per hour. d. none of the above.
A profit-maximizing, competitive firm for which the marginal product of labor is diminishing also experiences
a. a perfectly inelastic supply of labor. b. a perfectly elastic supply of labor. c. a downward-sloping demand for labor. d. an upward-sloping demand for labor.