Question 1

The following statements describe the adverse effects suffered by groups subject to labour- market discrimination.Which of the statements is false?

Accepted Answer

The statement that "their human capital will increase" is false. Discrimination in the labor market can lead to lower levels of education and training, as well as limited access to opportunities for skill development and advancement. Discrimination can also reduce motivation to invest in human capital, as individuals may perceive that their efforts are unlikely to result in improved outcomes due to discrimination.

Question 2

FIGURE 14- 1 Suppose an island economy has only two labour markets - fishing (high skill)and farming (low skill).There are 1000 males and 1000 females in the labour force.There is an equal distribution of skilled and non- skilled workers among each sex.
 
-Refer to Figure 14- 1.Suppose the employers in the fishers labour market begin to discriminate against male workers.Which of the following can we expect to occur in the fishers labour market?

Accepted Answer

The answer of FIGURE 14- 1 Suppose an island economy...

Question 3

Labour- market discrimination results in a

Accepted Answer

Labour-market discrimination results in a lower supply in discriminating occupations as those who are discriminated against are excluded from those jobs, while a higher supply in non-discriminating occupations as individuals who are being discriminated against have to turn to those jobs as alternative options.

Question 4

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

Accepted Answer

Limiting the number of students who can enroll in these programs will decrease the supply of professionals in these fields, leading to a reduction in competition and potentially higher wages.

Question 5

The purpose of a labour union is to

Accepted Answer

Labour unions aim to use their collective bargaining power to negotiate better wages and working conditions, similar to how a monopolist uses market power to influence prices in product markets.

Question 6

For a monopsonist in a labour market,the firm's MC curve for labour lies the competitive supply curve for labour; just as the marginal revenue curve for a monopolist lies the demand curve for its product.

Accepted Answer

A monopsonist has market power in the labour market, and can influence the wage rate it pays by hiring more or fewer workers. The competitive supply curve for labour represents the wage rate that would prevail if there were many firms competing for the same workers. The firm's MC curve for labour represents the additional cost (or marginal cost) of hiring one more worker. When the monopsonist hires one more worker, it not only pays the worker's wage, but also has to increase the wage for all the other workers it employs. Therefore, the firm's MR (marginal revenue) curve for labour lies below the competitive supply curve, just as the MR curve for a monopolist lies below the demand curve for its product. This means that the monopsonist will hire fewer workers and pay them a lower wage than would prevail in a competitive labour market.

Quiz 14: Labour Markets

The following statements describe the adverse effects suffered by groups subject to labour- market discrimination.Which of the statements is false?

Labour- market discrimination results in a

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

The purpose of a labour union is to

For a monopsonist in a labour market,the firm's MC curve for labour lies the competitive supply curve for labour; just as the marginal revenue curve for a monopolist lies the demand curve for its product.