1. Describe how the demand for labor is a derived demand.
2. Given 5 workers (adding 1 at a time): Output increases 120, 260, 360, 440, 480; Wage rate is $1,000; Output price is a constant $20. Calculate MP of labor; Marginal Revenue Product; and Profit when adding each additional worker.
3. Graph number the previous problem
4. Why is the demand for labor curve sloped downward
5. Why is the supply for labor curve sloped upward
6. Describe what shifts the labor demand curve
7. Describe what shifts the labor supply curve
8. If the price of a product decreases what happens to the wages for workers in that market (graph it)?
9. If immigration policy is tightened what happens to wages in labor intensive industries like hospitality and agriculture (graph it)?
10. Graph and explain the ramifications of a minimum wage.
11. Describe the relationship between wages and worker productivity
12. Describe why the supply of workers is low in certain occupations (and therefore higher wages)
13. What is the poverty level in the U.S. and what is the poverty rate in Oklahoma?
14. What is COLA and its relationship to expected annual inflation
15. If you salary was $45K in 1994; $62K in 2000; and $76K in 2015; calculate your nominal and real income if the CPI was .84 in 1994, 1.00 in 2000, and 1.4 in 2015.
16. Describe a natural monopoly and graph it (show and compute the profit)
17. Show graph if 2 firms produce this product in the market
18. Draw the regulated natural monopoly graph (show and compute profit)
19. Describe a merger and an acquisition
20. Describe a horizontal and vertical merger