5. As an employer hires more labor, we expect the marginal revenue product of labor to: a. Increase. b. Decrease. c. Remain constant. d. Impossible to determine. 6. If a firm has market power ( as opposed to being perfectly competitive) and can thus exercise some control over wages, a. It will pay a wages less than MRP. b. it will pay a wage eqaul to MRP. c. it will pay a wage greater than MRP. 7. Rasing the minimum wage will a. Create a surplus of labor. b. raise workers' wages. c. Increase unemployment. d. all of the above.
5. As an employer hires more labor, we expect the marginal revenue product of labor to:
a. Increase.
b. Decrease.
c. Remain constant.
d. Impossible to determine.
6. If a firm has market power ( as opposed to being
a. It will pay a wages less than MRP.
b. it will pay a wage eqaul to MRP.
c. it will pay a wage greater than MRP.
7. Rasing the minimum wage will
a. Create a surplus of labor.
b. raise workers' wages.
c. Increase
d. all of the above.
8. The ease with which people will increase or decrease their income relative to the rest of society is called:
a. Income inequality.
b. consumption inequality.
c. Economic mobility.
d. progressive
9. what is one reason why income inequality in a society might result in economic efficiency?
a. it will raise everyone's standard of living equally.
b. it will provide an incentive for people to acquire valuable skills.
c. it will fully utilize the abilities of the entire labor force.
d. there are not efficiencies to economic inequality.
10. Which of the following represents Gini coefficient of the country with the greatest inequality?
a. 0.23
b. 0.45
c. 0.51
d. 0.77
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