Question : 19.2   Labor Markets 1) As the wage rate rises, the quantity : 1226322

19.2   Labor Markets

1) As the wage rate rises, the quantity of labor an individual supplies

A) decreases at all wage rates.

B) initially decreases at low wage rates and then increases at high wage rates.

C) increases at all wage rates.

D) initially increases at low wage rates and then decreases at high wage rates.

E) does not change.

2) The supply of labor curve for an individual is

A) upward sloping at all wage rates.

B) downward sloping at all wage rates.

C) upward sloping for lower wage rates and begins to slope downward at higher wage rates.

D) downward sloping for lower wage rates and begins to slope upward at higher wage rates.

E) an upside-down U-shape.

3) Because leisure time has value to many workers, as wages increase the labor supply curve

A) has a positive slope.

B) bends backwards and has a negative slope.

C) becomes a horizontal line.

D) becomes a vertical line.

E) bends forward and has a positive slope.

4) Which of the following statements about the supply of labor is correct?

A) It is perfectly inelastic at whatever quantity individuals are willing to work.

B) An individual’s supply of labor curve is always upward sloping, like the supply curves of other items.

C) It is perfectly price elastic at the current wage rate.

D) An individual’s supply of labor curve can bend backwards.

E) The supply of labor curve is shaped like an upside-down U.

5) When more people remain in school for full-time education and training, the supply of low-skilled labor ________ and the supply of high-skilled labor ________.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) does not change; does not change

6) What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

A) It becomes more inelastic.

B) The supply of low-skilled labor decreases.

C) The supply of low-skilled labor increases.

D) It becomes more elastic.

E) None of the above answers is correct.

7) According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades. If this prediction is correct, the supply of labor in Russia will

A) increase.

B) not change.

C) decrease.

D) become less elastic.

E) become more elastic.

8) If the wage rate increases, then

A) the quantity of labor supplied definitely decreases.

B) there is a movement upward along the supply of labor curve.

C) the supply of labor curve shifts rightward.

D) the supply of labor curve shifts left ward.

E) the quantity of labor supplied definitely increases.

9) A change in the wage rate

A) shifts the supply of labor curve so that the supply becomes more elastic.

B) shifts the supply of labor curve leftward.

C) shifts the supply of labor curve rightward.

D) does not shift the supply of labor curve but instead leads to a movement along it.

E) either shifts the supply of labor curve leftward or rightward depending whether the demand for labor curve shifts rightward or leftward.

10) Which of the following shift the supply of labor curve leftward?

i.an advancement in technology

ii.a decrease in the price of the product that the labor produces

iii.a decrease in the adult population

A) i and ii

B) ii and iii

C) ii only

D) iii only

E) i, ii, and iii