Question: The labor market is a market in which:

Answer: social and political pressures are particularly strong.

Question: All of the following are possible explanations for the fact that on average women earn lower wages than men in the United States except:

Answer: women are more productive than men on average.

Question: Institutional discrimination exists when:

Answer: the structure of a job makes it difficult for certain groups of individuals to succeed.

Question: Demand-side discrimination occurs when:

Answer: employers pay women less than men for doing the same job.

Question: The price of apples is currently $1 per pound. If apples are sold in a competitive market and the price of apples increases to $2 per pound, the marginal revenue product (MRP) of labor used to produce apples would:

Answer: double

Question: The derived demand curve for labor shows the:

Answer: maximum amount of labor, measured in labor hours, that a firm will hire at various wages.

Question: The marginal revenue product of an input tends to decrease as:

Answer: more of the input is used.

Question: Refer to the table shown.

The marginal physical product of the sixth worker is _____, and the average product of six workers is _____.

Answer: 6; 15

Question: Refer to the table shown.

If the price per unit of product is $2 and the wage rate is $25, a profit-maximizing firm operating in competitive markets would hire:

Answer: Either 4 or 5 workers

Question: If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:

Answer: rise because fewer workers are working with the same amount of capital.