Labor Econ

The cost of producing a given level of output is minimized:

The marginal rate of technical substitution at any particular labor-capital bundle is

What is an example of the substitution effect?

The short-run production function typically:

The scale effect refers to:

Assume that for the last worker hired, MPE = 6, p = $2, and w = $10. If one more worker is hired, then MPE = 4, p = $2, and w = $10. The implication is what?

The slope of the production function while holding capital fixed is

What is the marginal productivity condition of a profit-maximizing firm?

The marginal product of labor:

Ally owns a shoe store. The market wage is $10 per hour, and the cost of capital is $2 per week for every $1,000 of capital borrowed. Consider the isocost line associated with spending $8,000 per week, and let the y-axis be the amount of capital borrowed in $1,000s. Which of the following is not true?

At a wage of $25 per hour, the firm employs 50,000 hours of labor per week. If the wage would increase to $27 per hour, the firm would employ 45,000 hours of labor per week. What is the elasticity of labor demand?

In the long run, a firm hires labor and capital such that all of the following hold except:

In the short run, the demand for labor for a competitive firm is:

How does a profit-maximizing firm that is operating in a competitive labor market respond to an increase in the wage rate?

What is an example of the scale effect?

What is an example of the substitution effect?

Labor demand is more elastic

In a competitive industry, the profit-maximizing amount of labor occurs where:

Why is the short-run labor demand curve less elastic relative to the long-run labor demand curve?

The cost of offering safe versus risky jobs in the highway construction industry vary across firms. In the end, we would expect the market equilibrium to

Which of the following is NOT an accurate summary of the equilibrium associated with a single competitive labor market?

If the minimum wage applies to one sector (the covered sector) but not another sector (the uncovered sector), an increase in the minimum wage in the covered sector is likely to result in which of the following?

Having the government regulate work-place safety would most likely improve economic efficiency if:

If 1 in 20,000 miners is killed on the job each year while 1 in 30,000 truck drivers is killed on the job each year, what is the statistical value of a life if the average miner salary is $54,000 while the average truck driver salary is $52,000?

The Hedonic Wage Function is the:

The market-clearing wage differential between a safe and a risky job is $5,000. Which of the following is NOT true?

Economic analysis of the value of a life suggests that:

Which of the following is NOT a property of isoprofit curves graphed in Probability of Injury (x-axis) versus Wage (y-axis) space?

Suppose there are two types of jobs-safe and risky. Safe jobs currently pay $10 per hour. Risky jobs currently pay $20 per hour. The government intervenes in the market, mandating that all firms offer safe jobs and pay a wage of $10 per hour. Which of the following is true?

A potential implication of OSHA regulation is that

Suppose 1 in 200 pilots flying Space-X aircraft dies each year while only 1 in 500 pilots flying Subspace Gliders dies each year. Moreover, the average salary of Space-X pilots is $115,000, while the average salary of Subspace Glider pilots is $109,000. Given this information, what is the implied statistical value of a life of a pilot?

In the context of risky jobs, the worker’s reservation price is:

Competitive factor and product markets lead to:

The equilibrium of a competitive labor market is associated with

A negative compensating differential for a risky job can result if:

A hedonic wage function could be applied to which of the following job characteristics?

Under normal circumstances, the equilibrium compensation wage differential is the wage differential that exactly attracts

The supply curve of labor to risky jobs reveals:

In order for the compensating differential associated with a risky job to be negative (so that a risky job pays less than a non-risky job), it must be that:

How would imposing a minimum wage above the market clearing wage affect employment in a competitive labor market?

Which of the following would prevent a single equilibrium wage existing across all labor markets?

When graphing a worker's indifference curves in Probability of Injury (x-axis) versus Wage (y-axis) space, Al's indifference curves are steeper than Pete's indifference curve. In this case:

Assume that the market clearing wages are $10 per hour in a safe job and $18 per hour in a risky job. Then, at the completion of a war, many ex-soldiers who enjoy risky ventures enter the labor market. Which of the following is NOT a likely outcome of this change?