Question : 81) The Bubby Gum factory produces bubble gum. Joanne one : 1238523

81) The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne’s money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then

A) Joanne is creating a $2.00 per hour loss for the firm.

B) Joanne is creating a $2.00 per hour profit for the firm.

C) the Bubby Gum company should decrease the price of the bubble gum so it sells more and makes a larger profit.

D) the Bubby Gum company should pay Joanne more.

E) None of the above answers is correct because more information about Joanne’s real wage is needed to decide what to do.

82) The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne’s money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then Joanne ________ because ________.

A)  is creating a $2.00 per hour loss for the firm; her real wage rate is more than her output per hour

B)  is creating a $2.00 per hour profit for the firm; her real wage rate is more than her output per hour

C) should recommend that the Bubby Gum company should decrease the price of the bubble gum ; it would sell more and bring a larger profit

D) should ask for a raise in pay; then her real wage would be less than her output per  hour

E) is the last person the Bubby Gump company will employ; an additional hire would produce equal the amount of additional labor to real wage per hour

83) To maximize profits, firms hire labor as long as

A) each additional hour hired produces more additional output than the real wage rate.

B) the total hours hired produces more additional output than the real wage rate.

C) each additional hour hired produces more additional output than the nominal wage rate.

D) the quantity of labor supplied increases as the real wage rate increases.

E) workers continue to supply labor to the firm.

84) For a household, the opportunity cost of not working is the

A) nominal wage rate.

B) real wage rate.

C) cost of living.

D) price level.

E) demand for labor.

85) Which of the following statements is (are) true?

i.As the real wage rate increases, the household’s income decreases, which influences people to work more hours.

ii.As the real wage rate increases, the quantity of labor demanded increases.

iii.As the real wage rate increases, the opportunity cost of not working increases.

A) i only

B) ii only

C) iii only

D) i and iii

E) i, ii, and iii

86) As demonstrated by the labor supply schedule, the quantity of labor supplied depends on

A) the nominal wage.

B) the amount of labor that firms want to hire.

C) the real wage.

D) the value of the dollar.

E) workers’ productivity.

87) The supply of labor is defined as the relationship between the real wage rate and the

A) quantity of labor supplied by firms.

B) amount of jobs supplied by firms.

C) quantity of labor supplied by households.

D) amount of jobs supplied by households.

E) equilibrium quantity of employment.

88) Which of the following statements is true?

A) According to the labor supply curve, as the real wage rises, employers are willing to provide more jobs.

B) According to the labor supply curve, as the real wage rises, workers are willing to provide more hours of labor.

C) According to the labor supply curve, as the real wage rises, employers are willing to provide fewer jobs.

D) According to the labor supply curve, as the real wage rises, workers are willing to provide fewer hours of labor.

E) According to the labor supply curve, as the real wage rises, more workers leave the labor force.

89) Households increase the quantity of labor supplied when the

A) real wage rate rises because the opportunity cost of not working falls.

B) nominal wage rate rises because the real wage rate must also rise.

C) real wage rate rises because the opportunity cost of not working rises.

D) nominal wage rate falls because the opportunity cost of not working rises.

E) income tax rises because an increase in the income tax increases the demand for labor.

90) Households increase the quantity of labor supplied when

A) the real wage rate increases.

B) the real wage rate decreases.

C) job opportunities increase.

D) the nominal wage decreases and the price level rises.

E) income taxes increase.