4. A profit-ximizing monopolist firm in product market and competitive in lab
wage rate
Less than the worker's MRP
Equal to the worker's MRPL
A. Equal to the worker's VMP 8. Greater than the worker's VMP
5. Suppose that a firin's production function is given by Q=20L-21. If the price of the p Bir 20, what will be the marginal physical product of the second worker employed (MPP)?
B.12
1.40
6. Based on question mamber 5, what will be the value of marginal product of the second worke
C. 18
employed (VMPL 1600
B, 240
180
DA
7. Firm's labor demand curve shifts inward/to the left due to all but one A Decrease in price of output
C. Decrease in product demand
Decrease in worker's productivity D. Increase non-wage income
8. All of the following is true about Lump-sum tax, except A It is real tax revenue to be collected regardless of the level of income.
B. It has a positive impact on labour supply C. Reduce consumption of leisure time
D. The amount depends on time that the individuals spend for work
a is a rate that workers can legally be paid (usually per hour) as opposed to wages that are
determined by the forces of supply and demand in a free market.
A. Income support program
C. Minimum Wage
B. Efficiency wage
D. Compensating wage
10. If individual X is working 8 hours at market wage rate 10 birr per hour and Benefit
625, net wage rate for individual X will be
A 7.Shir
B.2.5birr
C. 80 birr
D.60 birr E. None
11. Which one of the following is not true about the effect of trade Union?
It has positive effect on wage and increase wage inequality
B. It prevent markets from clearing
E. None of the above
C. It increase the employee motivation to perform well. D. It discourages investment by reducing profitability
rec
refers to:
12 is a pay scheme where part of the worker's compensation is given or invested in the firm's stock
A Piece Rate
B. Equity Compensation
C. Commissions and Royalties D. Profit sharing