The "law of supply" functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied.     price     demand     supply     quantity

Completed 0 out of 30 Resources Submit Question 24 of 30 What is the elasticity of demand for labor? A measure of how upset your boss is when his employees ask for more money. O A measure of how responsive firms' supply of labor is to changes in the wage rate. A measure of the extra revenue earned by the firm resulting from hiring one more unit of labor. A measure of how much firms' profits are affected by changes to wages. A measure of how sensitive the amount of labor firms will hire is to changes in the wage rate. A measure of the sensitivity of wage rates to the unemployment rate. Suppose you discover that your boss has a demand for labor that is very elastic. What does this imply in terms of y requesting a raise? Your boss may likely eliminate some positions (fire some people) if wages rise. Your boss will maintain the exact same labor force (not fire or hire anyone) if wages rise. Your boss is a flexible and undertanding person, so he or she is likely to accomodate any request…

The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply shifts to the right, if wages are flexible, B) labor supply shifts to the left, if wages are flexible. C) labor demand shifts to the left, if wages are flexible. D) labor demand shifts to the right, if wages are flexible.

Which one of the following statements is incorrect?  a) Equilibrium in a perfectly competitive labour market occurs where the demand for labour is equal to the supply of labour.  b) Equilibrium in a perfectly competitive labour market occurs where the quantity of labour demanded is equal to the quantity of labour supplied.  c) Equilibrium in a perfectly competitive labour market is the result of the interaction between the demand for labour and the supply of labour.  d) The individual supply of labour bends backwards when the income effect becomes stronger than the substitution effect.

A firm’s technology requires it to combine 5 person-hours of labor with 3 machinehours to produce 1 unit of output. The firm has 15 machines in place and the wage rate rises from $10 per hour to $20 per hour. What is the firm’s short-run elasticity of labor demand?

tion 28 In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly competitive in the product market will: pay a wage that is equal to the marginal product of labor. hire more units of labor than would a firm that sells its output in a monopoly market. pay a wage equal to the marginal factor cost. pay a wage that is equal to the price of the product. face a perfectly inelastic supply curve of labor.

A machine shop requires both a CNC machine and an employee to operate it. If the minimum wage increases,       Supply of machines increases      demand for machines increases      demand for machines decreases      Demand for employees increases      None of the above is true

Explain the relationship between the own-wage elasticity of labor demand and output demand elasticity. labour costs as a share of total costs of production.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 10 2 0 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 500 Labor Supplied (Hundreds of workers) ? 0

Labor demand becomes more elastic as the demand for the firm’s output a. becomes more elastic b. becomes less elastic c. increases d. decreases e. is at market equilibrium