Macroeconomics question?

Posted on 2014-12-19 07:19:00 in Economics by ANGELO

1. Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100 a day, but a minimum wage of $130 a day for bricklayers is set by the government. As a result:

a) six workers will now be hired by the firm.

b) construction firms will shut down.

c) three workers who otherwise would have been employed are now unemployed.

d) all bricklayers are better off.

2. A firm's demand curve for labor is:

a) the downward-sloping portion of its marginal product curve.

b) horizontal for the firm in perfect competition.

c) the upward-sloping portion of its value of the marginal product curve.

d) the downward-sloping portion of its value of the marginal product curve.

3. Which of the following does not partially explain wage differentials?

a) differences in talent

b) different amounts of human capital

c) compensating differentials

d) differences in capital

4. In the United States, payments to labor account for:

a) 70% of total income, a share that has not fluctuated much in the past 30 years.

b) 90% of income and can be broken down into human capital and physical capital.

c) 50% of total income, but the returns to land have been increasing.

d) only 30% of total income, and this number is falling.

5. If a perfectly competitive firm chooses the level of output so that price equals marginal revenue, then it is also true that at that output level the value of the marginal product of labor will equal the wage rate.

a) False

b) True

---

Answer Comment

No Answers Posted Yet.