Multiple Choice Identify the choice that best completes the statement or answers the question. 1. If a large number of unskilled workers enter the labor market, which of the following is most lilely to occur in the labor market for unskilled workers? a. The supply curve will shit to the right d. The demand curve will shift to the left and the wage rate will decrease and the wage rate decrease b. The supply curve will shift to the left and e. There will be a movement up along the the wage will increase. demand curve and the wage rate will increase. C. The demand curve will shift to the right and the wage rate will increase 2. Assume that a proft-maximizing, perfectly competitive firm hires labor in a perfectly competitive labor market. If the market wage rate is $12 per hour and the price of the productis $3 per unit, the firm a. hire more workers if each worker can d. not hire any workers, since the cost of produce 3 units per hour. labor is greater than the price of the output. b. hire another worker if the output per e . continue to operate in the short run but hourof the additional worker exceeds 4 not in the long run. units. C . hire fewer workers, since the hourly wage rate exceeds the cost of producing one unit of output. 3. Based on the table for a perfectly competitive firm below, if the wage rate for labor is $15, how many units of labor should the firm hire? Quantity of Labor Marginal Product Marginal Revenue Product 0 1 20 $40 2 14 28 12 24 4 8 16 6 12 6 4 8 R A W N e . a