An employer has narrowed a list of applicants down to two individuals. The two candidates look nearly identical on paper, but one of them has earned a four-year college degree. The employer decides to offer employment to the college graduate. What does this example illustrate? (1 point)
the income effect
the screening effect
the substitution effect
the learning effect
A firm sells pairs of jeans. The market price for a pair of jeans is $30. With one worker the firm can make 9 pairs of jeans in an hour. With two workers the firm can make 19 pairs of jeans in an hour. What is the marginal revenue product of labor for the second worker? (1 point)
$570 per hour
$300 per hour
$270 per hour
$840 per hour
Question
Use the table to determine how many workers the firm will employ when the cost per good is $6, and the wage rate is $25.
Labor Input (Workers) Total Product Marginal Product of Labor
Marginal Revenue Product of Labor (per hour)
Marginal Cost of Labor (per hour)
0 0 - - -
1 7 7 $42 $25
2 16 9 $54 $25
3 24 8 $48 $25
4 28 4 $24 $25
5 30 2 $12 $25
(1 point)
two workers
five workers
four workers
three workers
A state agency has recently removed the certification and training requirements for hairdressers in the state. What is likely to happen in the labor market for hairdressers? (1 point)
The demand for hairdressers will fall.
The demand for hairdressers will rise.
The wages paid to hairdressers will rise.
The wages paid to hairdressers will fall.
If your goal is to earn the highest wage possible, which of the following industries has the most favorable characteristics? (1 point)
There are many firms producing very popular products, but the production process is so technical that properly trained employees are hard to come by.
A few firms produce a very specialized product, but capital is used instead of labor for much of the production. The firms primarily hire low-skilled workers, if any.
Many firms are producing very popular products, and the simple processes involved in production allow the firms to hire thousands of low-skilled workers.
A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.
A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.
1. the screening effect
2. $300 per hour
3. three workers
4. the wages paid to hairdressers will fall
5. there are many firms producing very popular products, but the production process is so technical that properly trained employees are hard to come by