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标题: Markets for Factors of Production - LOS c ～ Q1 [打印本页]

作者: mayanfang1 时间: 2009-1-15 11:34 标题: [2009]Session 5 - Reading 21: Markets for Factors of Production - LOS c ～ Q1

Q1、Which of the following factors is least likely to affect the supply of labor?

A) The accumulation of capital.

B) The aggregate requirement for labor.

C) Wages offered.

Q2、When workers agree to forego leisure to undertake labor and receive wages, the term that is applied in labor supply economics is the:

A) income effect.

B) substitution effect.

C) marginal rate of substitution.

Q3、When smaller amounts of additional labor are supplied in response to increases in the wages offered, this is known as the:

A) income effect.

B) substitution effect.

C) marginal rate of substitution.

作者: mayanfang1 时间: 2009-1-15 11:34

答案和详解如下：

Q1、Which of the following factors is least likely to affect the supply of labor?

A) The accumulation of capital.

B) The aggregate requirement for labor.

C) Wages offered.

Correct answer is B)

Wages, the size of the adult population (i.e., the available labor force), and the accumulation of capital are all factors that affect the supply of labor. The aggregate requirement for labor is a demand issue that will ultimately help to determine the equilibrium level of wages and quantities offered.

Q2、When workers agree to forego leisure to undertake labor and receive wages, the term that is applied in labor supply economics is the:

A) income effect.

B) substitution effect.

C) marginal rate of substitution.

Correct answer is B)

In labor supply economics, the term applied to the decision by workers to forego leisure and undertake labor for wages is the substitution effect.

Q3、When smaller amounts of additional labor are supplied in response to increases in the wages offered, this is known as the:

A) income effect.

B) substitution effect.

C) marginal rate of substitution.

Correct answer is A)

The income effect results in smaller additions to the labor supply as wages increase. Like any good, income received in the form of wages has a decreasing marginal utility. When the point is reached at which the utility received is equal to the marginal cost of leisure foregone, the maximum amount of labor that will be offered is reached.

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