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WorksheetsReview Session 1 - 2156
Total questions: 7
Worksheet time: 7mins
An increase in non-market income will have which of the following effects?
An upward shift in the income constraint
A downward shift in the income constraint
A clockwise rotation in the income constraint, making it steeper
The slope of the indifference curve at the lower right-hand corner of the income/leisure diagram, where zero hours are supplied to the labour market, is equal to:
The prevailing market wage
The reservation wage
The level of non-market income
The slope of the budget constraint
In the long run, which of the following statements is false?
W=VMPL and K=VMPK
MPL/MPK=w/r
MPL=MPK
If the value of the marginal product of labour exceeds the wage, then employing another worker
Increases profit
Increases the marginal product of labour
Increases the value of the marginal product of labour
Cuts costs
Lara's hourly wage falls from $15 to $7.7, her budget line
shifts up without changing its slope
gets flatter, pivoting through the vertical intercept
gets flatter, pivoting through the vertical intercept
gets steeper but continues to cut through his endowment point
In a situation of a monopsonistic firm, if the government impose a minimum wage which is higher than the equilibrium wage level of the monopsonist. The new equilibrium employment level is:
The same as before
indeterminate
greater than before
smaller than before
After the imposition of minimum wage, monopsonist's profit will:
increase
decrease
remain the same
equal to zero
