HMGT 3320 TEST BANK 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ A demand curve for labor is the graphical representation of the
relationship between the quantity of labor inputs a firm wishes to
purchase per period of time and the price of that labor, ceteris paribus. T
OR F. Answer: True
◉ The positive relationship bw wages and work time measures what is
called
Substitution effect of leisure for income
Income effect of leisure for income
Substitution effect of income for leisure
Income effect of income for leisure. Answer: Substitution effect of
income for leisure
◉ Substitution effect. Answer: Increased wages gives incentive to give
up leisure time for work bc work has a higher reward than leisure time
◉ Income effect. Answer: A wage increase gives the individual more
money which enables the individual to afford more leisure time
,◉ The prediciton of the impact of a labor union in a market is that
unions
Inc wages and inc employment
Inc wages and restrict employment
Dec wages and restrict employment
Dec wages and inc employment. Answer: Inc wages and restrict
employment
◉ The labor market is the institution by which workers and employers
come together to engage in the production of output T or F. Answer:
True
◉ If there is a 6000$ wage difference between two occupations and a
difference in mortality rate of 0.00099 per individual, the value of the
statistical life is calculated to be. Answer: 6.061 million (wage diff /
mortality rate)
◉ The demand curve for labor will shift upward and to the left if the
labor becomes more productive T or F. Answer: F (to the right, not left)
-left means a reduction of labor
◉ Labor market supply curve is ___ sloping. There is a _____
relationship bw price (compensation) and quantity of labor supplied
, Labor market demand curve is ______ sloping. There is an ______
relationship between price (compensation) and quantity of labor
demanded. Answer: Upward; direct
Downward; inverse; The lower the cost of labor, the more employers can
afford labor
◉ The individual will inc work time hours from zero as long as the
value of lost leisure is greater than wage rate T or F. Answer: F; An
individual will increase work hours if the wage rate is greater than the
value of lost leisure
◉ Productivity is a key determinant in the employer's demand for labor
T or F. Answer: T
◉ If an individual does NOT have a strong willingness to work more as
wages increase, the the supply curve will be. Answer: Steeply sloped
(more inelastic bc more resistant to changes)
◉ What r some fringe benefits. Answer: Health insurance, life insurance,
disability and retirement funding, childcare, parking
◉ Labor demand curve. Answer: a graph that illustrates the amount of
labor that firms want to employ at each given wage rate
-is the marginal value product curve (MVP)
-MP: additional output achieved w one additional input
WITH SOLUTIONS GRADED A+
◉ A demand curve for labor is the graphical representation of the
relationship between the quantity of labor inputs a firm wishes to
purchase per period of time and the price of that labor, ceteris paribus. T
OR F. Answer: True
◉ The positive relationship bw wages and work time measures what is
called
Substitution effect of leisure for income
Income effect of leisure for income
Substitution effect of income for leisure
Income effect of income for leisure. Answer: Substitution effect of
income for leisure
◉ Substitution effect. Answer: Increased wages gives incentive to give
up leisure time for work bc work has a higher reward than leisure time
◉ Income effect. Answer: A wage increase gives the individual more
money which enables the individual to afford more leisure time
,◉ The prediciton of the impact of a labor union in a market is that
unions
Inc wages and inc employment
Inc wages and restrict employment
Dec wages and restrict employment
Dec wages and inc employment. Answer: Inc wages and restrict
employment
◉ The labor market is the institution by which workers and employers
come together to engage in the production of output T or F. Answer:
True
◉ If there is a 6000$ wage difference between two occupations and a
difference in mortality rate of 0.00099 per individual, the value of the
statistical life is calculated to be. Answer: 6.061 million (wage diff /
mortality rate)
◉ The demand curve for labor will shift upward and to the left if the
labor becomes more productive T or F. Answer: F (to the right, not left)
-left means a reduction of labor
◉ Labor market supply curve is ___ sloping. There is a _____
relationship bw price (compensation) and quantity of labor supplied
, Labor market demand curve is ______ sloping. There is an ______
relationship between price (compensation) and quantity of labor
demanded. Answer: Upward; direct
Downward; inverse; The lower the cost of labor, the more employers can
afford labor
◉ The individual will inc work time hours from zero as long as the
value of lost leisure is greater than wage rate T or F. Answer: F; An
individual will increase work hours if the wage rate is greater than the
value of lost leisure
◉ Productivity is a key determinant in the employer's demand for labor
T or F. Answer: T
◉ If an individual does NOT have a strong willingness to work more as
wages increase, the the supply curve will be. Answer: Steeply sloped
(more inelastic bc more resistant to changes)
◉ What r some fringe benefits. Answer: Health insurance, life insurance,
disability and retirement funding, childcare, parking
◉ Labor demand curve. Answer: a graph that illustrates the amount of
labor that firms want to employ at each given wage rate
-is the marginal value product curve (MVP)
-MP: additional output achieved w one additional input
