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Micro Eccooonomic

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Submitted By daigiagialam
Words 328
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1. Real wages in the United States in the long run:
A. show no discernible relationship to output per worker.
B. have increased at about the same rate as increases in output per worker.
C. have increased slower than increases in output per worker.
D. have increased faster than increases in output per worker.

2. If the nominal wages of carpenters rose by 5 percent in 2010 and the price level increased by 3 percent, then the real wages of carpenters:
A. decreased by 2 percent.
B. increased by 2 percent.
C. increased by 3 percent.
D. increased by 8 percent.

3. Marginal revenue product (MRP) of labor refers to the:
A. increase in total revenue resulting from the sale of an additional unit of output.
B. amount by which a firm's total resource cost increases when it employs one more unit of labor.
C. increase in total revenue resulting from the hire of one more unit of labor.
D. price at which additional units of labor can be employed in a monopsonized labor market.

4. Marginal resource cost refers to the:
A. increase in total revenue resulting from the sale of the extra output of one more worker.
B. price at which additional units of a resource can be hired in an imperfectly competitive resource market.
C. increase in total cost resulting from the production of one more unit of output.
D. amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.

5. If a firm is hiring a certain type of labor under purely competitive conditions:
A. its labor demand curve will be perfectly elastic at the market-determined wage rate.
B. the labor supply curve will lie above the marginal labor cost curve.
C. the labor supply and marginal labor (resource) cost curves will coincide and be upsloping.
D. the labor supply and marginal labor (resource) cost curves will coincide and be perfectly

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