ECS4863 EXAM ELABORATIONS
WITH QUESTIONS AND WELL
DETAILED ANSWERS
DISTINCTION!!!!!!
10 - : ANSWER :A monopsony can hire 1 worker for $5, 2 for $6 each,
three for $7 each. If the MR for all workers is $16, what wage will it
pay? : QUESTION :$150 - : ANSWER :A firm currently employs 10
workers. To higher an 11th, it must raise pay by $5 and pay the 11th
worker $100. What is the ME of hiring the 11th worker? : QUESTION :a
decrease - : ANSWER :Through the substitution effect, an increase in
the wage rate will cause _____ in the quantity of leisure desired :
QUESTION :a pure income effect - : ANSWER :Fixed costs of working
act like : QUESTION :an increase in - : ANSWER :Fixed monetary costs
of working (such as commuting) will cause ___ in the # of people
choosing to work 0 hours : QUESTION :any commodities which are
,produced at home and yield utility to the family - : ANSWER
:Household production consists of : QUESTION :both an income and a
substitution effect - : ANSWER :An increase in the marginal tax rate on
income will cause : QUESTION :both the employee and the employer - :
ANSWER :Specific training is paid for by : QUESTION :budget
constraint; steeper - : ANSWER :A person who receives time-and-a-
half overtime for working > 8 hours/day will have a _____, which is
___ beyond 8 hours of labor : QUESTION :decrease - : ANSWER :A
decrease in the daily cost of child care would likely ____ the hours of
work of mothers who continue to work : QUESTION :decrease - :
ANSWER :If two partners are substitutes in the production of
household goods, then if one partner increases their leisure time
(while earning the same income), the other partner's leisure time is
likely to ____ : QUESTION :decrease work hours as she spends more
time in the household consuming more commodities - : ANSWER :Sally
is single. Her income rises because of wise stock investments but wage
rate stays the same. The increase in income will likely : QUESTION
:equal to his or her marginal product of labor - : ANSWER :After
general training, the employee's wage will be : QUESTION
, :expenditure patterns will usually favor the partner making the most
income - : ANSWER :If the decision-making process in a household is
by partners bargaining with each other, we could expect to see
(holding household income constant), : QUESTION :fewer - : ANSWER
:A subsidy to pay for a portion of childcare costs will cause women
who are participating in the labor force to work _____ hours :
QUESTION :flat - : ANSWER :A person with ____ indifference curves is
most likely to decide to participate in the labor force : QUESTION :go
up by $30 - : ANSWER :A firm employers 10 workers for $500 each. If
an 11th is added, it has to raise all wages to $520. The 11th worker
adds $750 to weekly revenues. If the fire hires the 11th, its weekly
profits will : QUESTION :have current workers more hours, and hire
less workers - : ANSWER :The MP of a new worker is 80 units and the
marginal expense of a new worker is $800. The MP of hiring current
workers another hour is 10 units and the ME is $12. If the firm wants
to increase profits without changing its level of output, it should :
QUESTION :he could work more, fewer, or the same number of hours
as before - : ANSWER :If the only working member of a household
receives a decrease in his wage rate, the : QUESTION :increase - :
WITH QUESTIONS AND WELL
DETAILED ANSWERS
DISTINCTION!!!!!!
10 - : ANSWER :A monopsony can hire 1 worker for $5, 2 for $6 each,
three for $7 each. If the MR for all workers is $16, what wage will it
pay? : QUESTION :$150 - : ANSWER :A firm currently employs 10
workers. To higher an 11th, it must raise pay by $5 and pay the 11th
worker $100. What is the ME of hiring the 11th worker? : QUESTION :a
decrease - : ANSWER :Through the substitution effect, an increase in
the wage rate will cause _____ in the quantity of leisure desired :
QUESTION :a pure income effect - : ANSWER :Fixed costs of working
act like : QUESTION :an increase in - : ANSWER :Fixed monetary costs
of working (such as commuting) will cause ___ in the # of people
choosing to work 0 hours : QUESTION :any commodities which are
,produced at home and yield utility to the family - : ANSWER
:Household production consists of : QUESTION :both an income and a
substitution effect - : ANSWER :An increase in the marginal tax rate on
income will cause : QUESTION :both the employee and the employer - :
ANSWER :Specific training is paid for by : QUESTION :budget
constraint; steeper - : ANSWER :A person who receives time-and-a-
half overtime for working > 8 hours/day will have a _____, which is
___ beyond 8 hours of labor : QUESTION :decrease - : ANSWER :A
decrease in the daily cost of child care would likely ____ the hours of
work of mothers who continue to work : QUESTION :decrease - :
ANSWER :If two partners are substitutes in the production of
household goods, then if one partner increases their leisure time
(while earning the same income), the other partner's leisure time is
likely to ____ : QUESTION :decrease work hours as she spends more
time in the household consuming more commodities - : ANSWER :Sally
is single. Her income rises because of wise stock investments but wage
rate stays the same. The increase in income will likely : QUESTION
:equal to his or her marginal product of labor - : ANSWER :After
general training, the employee's wage will be : QUESTION
, :expenditure patterns will usually favor the partner making the most
income - : ANSWER :If the decision-making process in a household is
by partners bargaining with each other, we could expect to see
(holding household income constant), : QUESTION :fewer - : ANSWER
:A subsidy to pay for a portion of childcare costs will cause women
who are participating in the labor force to work _____ hours :
QUESTION :flat - : ANSWER :A person with ____ indifference curves is
most likely to decide to participate in the labor force : QUESTION :go
up by $30 - : ANSWER :A firm employers 10 workers for $500 each. If
an 11th is added, it has to raise all wages to $520. The 11th worker
adds $750 to weekly revenues. If the fire hires the 11th, its weekly
profits will : QUESTION :have current workers more hours, and hire
less workers - : ANSWER :The MP of a new worker is 80 units and the
marginal expense of a new worker is $800. The MP of hiring current
workers another hour is 10 units and the ME is $12. If the firm wants
to increase profits without changing its level of output, it should :
QUESTION :he could work more, fewer, or the same number of hours
as before - : ANSWER :If the only working member of a household
receives a decrease in his wage rate, the : QUESTION :increase - :
