ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 2

A. where MC = ATC and MC = AVC B. where FC = ATC and FC = AVC C. where TC starts to increase at a faster rate D. where ATC = AVC 5) If the wage rate increases, A. a purely competitive producer will hire less labour, but an imperfectly competitive producer will not B. an imperfectly competitive producer will hire less labour, but a purely competitive producer will not C. a purely competitive and an imperfectly competitive producer will both hire less labour D. an imperfectly competitive producer may find it profitable to hire either more or less labour 6) The real wage will rise if the nominal wage A. falls more rapidly than the general price level B. increases at the same rate as labor productivity C. increases more rapidly than the general price level D. falls at the same rate as the general price level 7) Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason they do this is to A. restrict the supply of construction workers B. increase the elasticity of demand for construction workers C. increase the demand for construction workers D. increase the price of substitute inputs 8) Paying an above-equilibrium wage rate might reduce unit labour costs by A. permitting the firm to attract lower-quality labour B. increasing the cost to workers of being fired for shirking C. increasing voluntary worker turnover D. increasing the supply of labour