Question

(This question refers to the MRU video 'Human Capital and Signaling'.) Human capital and physical capital are alike in that: Select one: a. neither is subject to depreciation. b. they are both owned primarily by firms. c. they both require investments. d. workers take both with them when leaving a job.

Question 7 (This question refers to the MRU video 'The Marginal Product of Labor'.) In the market for a certain type of labor, the wage for that labor is determined by: Select one: a. the intersection of product demand and labor supply. b. the intersection of labor demand and product demand. c. the intersection of labor demand and labor supply. d. the intersection of labor demand and product supply.

Question 8 (This question refers to the MRU video 'Do Unions Raise Wages?'.) The United States and Switzerland: Select one: a. have much lower unionization rates than many European countries and equally high or higher wages. b. have much higher unionization rates than many European countries and lower average wages. c. have much higher unionization rates than many European countries and equally high or higher wages. d. have much lower unionization rates than many European countries and lower average wages.

Question 9 (This question refers to the MRU video 'The Marginal Product of Labor'.) The demand curve for labor is derived from: Select one: a. the supply curve for labor. b. the supply curve for the product produced by the labor. c. the marginal costs of production. d. the marginal product of labor.

Question 10 (This question refers to the MRU video 'The Marginal Product of Labor'.) Which of the following gives a labor demand-related reason that American janitors earn more than janitors in India? Select one: a. The U.S. dollar is stronger than the Indian rupee. b. There are more janitors in India than in the U.S. c. American office buildings are harder to clean than Indian office buildings. d. American office buildings are more productive.

Answer 1

6. Human capital and physical capital are similar in the sense that they both require investment.

Hence, option (c) is correct.

7. The wage rate of labor is determined by the intersection of labor supply and labor demand.

Hence, option (c) is correct.

8. The level of unionization in Europe is in double digits but in US and Switzerland, it is in single digit. The level unionization in US and Switzerland is low, hence lower average wages.

Hence, option (d) is correct.

9. The demand curve of labor is derived from its Marginal Product of labor.

Hence, option (d) is correct.

10. The wage rate of labor depends on marginal productivity of labor. And marginal productivity of labor is affected by level of capital available. Higher the level of capital, more will be the marginal productivity of labor. In Janitor's case, the capital is good office buildings that raise their marginal product.

Hence, option (d) is correct.