Question 1

Teenagers may benefit from minimum-wage laws.

Accepted Answer

A) True 
 B)False

Question 2

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

Accepted Answer

A) True 
 B)False

Question 3

-Refer to Figure 17.2.If the hourly wage increases from $9 to $12,then:

Accepted Answer

A) quantity demanded for labor will rise. 
B) demand for labor will decrease. 
C) quantity supplied of labor will increase. 
D) supply of labor will fall. 
A) quantity demanded for labor will rise. 
B) demand for labor will decrease. 
C) quantity supplied of labor will increase. 
D) supply of labor will fall.

Question 4

In the years since welfare reform took place,the number of people receiving aid has gone down.

Accepted Answer

A) True 
 B)False

Question 5

Discrimination cannot be easily measured by simply comparing average wage rates across workers.

Accepted Answer

A) True 
 B)False

Question 6

What is the signaling effect of a college education?

Accepted Answer

The signaling effect is the in

Question 7

Which of the following is a way to measure income?

Accepted Answer

A) available income 
B) market income 
C) taxable income 
D) all of the above 
A) available income 
B) market income 
C) taxable income 
D) all of the above

Question 8

Table 17.3
-Refer to Table 17.3.If the market price of the product is $4 and the firm can hire as many workers as it wants at a wage of $40,the firm should hire ________ workers.

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
A) 2 
B) 3 
C) 4 
D) 5

Question 9

Which of the following is considered a government transfer?

Accepted Answer

A) earning from treasury bonds 
B) food taxes 
C) housing assistance 
D) all of the above 
A) earning from treasury bonds 
B) food taxes 
C) housing assistance 
D) all of the above

Question 10

All else equal,when the supply of workers is plentiful,we can expect market wages to be:

Accepted Answer

A) relatively high. 
B) demand-determined. 
C) relatively low. 
D) above the equilibrium wage. 
A) relatively high. 
B) demand-determined. 
C) relatively low. 
D) above the equilibrium wage.

Question 11

The additional output produced by hiring an additional unit of labor is known as:

Accepted Answer

A) the productivity of labor. 
B) the marginal product of labor. 
C) diminishing returns. 
D) the derived demand for labor. 
A) the productivity of labor. 
B) the marginal product of labor. 
C) diminishing returns. 
D) the derived demand for labor.

Question 12

The incomes earned by the top one percent in the U.S.has decreased in recent years.

Accepted Answer

A) True 
 B)False

Question 13

Table 17.3
-Refer to Table 17.3.Suppose that the market price of the product is $2.If the wage is $40,the firm should hire ________ workers.

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
A) 2 
B) 3 
C) 4 
D) 5

Question 14

Cash payments make up approximately ________ percent of total expenditures on means-tested programs.

Accepted Answer

A) 10 
B) 20 
C) 40 
D) 50 
A) 10 
B) 20 
C) 40 
D) 50

Question 15

Table 17.1
-Refer to Table 17.1.If the product sells at a market price of $3,the marginal revenue product of the fourth worker is:

Accepted Answer

A) $40. 
B) $60. 
C) $15. 
D) $10. 
A) $40. 
B) $60. 
C) $15. 
D) $10.

Question 16

If Sparkling Cleaning Service uses only one variable input,labor.The firm's short-run demand curve for labor is the:

Accepted Answer

A) total product curve. 
B) marginal product curve. 
C) marginal revenue product curve. 
D) wage rate. 
A) total product curve. 
B) marginal product curve. 
C) marginal revenue product curve. 
D) wage rate.

Question 17

According to the signaling effect,college education:

Accepted Answer

A) enhances productivity. 
B) signals productivity. 
C) is an investment. 
D) increases the intelligence of the student. 
A) enhances productivity. 
B) signals productivity. 
C) is an investment. 
D) increases the intelligence of the student.

Question 18

Assume Edward considers eating out to be a normal good.The income effect of a wage increase for Edward implies that Edward's demand for eating out will be ________ and Edward's labor supply will be ________.

Accepted Answer

A) lower;higher 
B) higher;lower 
C) higher;higher 
D) lower;lower 
A) lower;higher 
B) higher;lower 
C) higher;higher 
D) lower;lower

Question 19

There are only winners from the minimum wage.

Accepted Answer

A) True 
 B)False

Question 20

What are the effects of a minimum wage that is placed above the market equilibrium wage?

Accepted Answer

The quantity of labor demanded

Teenagers may benefit from minimum-wage laws.

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

-Refer to Figure 17.2.If the hourly wage increases from $9 to $12,then:

In the years since welfare reform took place,the number of people receiving aid has gone down.

Discrimination cannot be easily measured by simply comparing average wage rates across workers.

What is the signaling effect of a college education?

Which of the following is a way to measure income?

Table 17.3 -Refer to Table 17.3.If the market price of the product is $4 and the firm can hire as many workers as it wants at a wage of $40,the firm should hire ________ workers.

Which of the following is considered a government transfer?

All else equal,when the supply of workers is plentiful,we can expect market wages to be:

The additional output produced by hiring an additional unit of labor is known as:

The incomes earned by the top one percent in the U.S.has decreased in recent years.

Table 17.3 -Refer to Table 17.3.Suppose that the market price of the product is $2.If the wage is $40,the firm should hire ________ workers.

Cash payments make up approximately ________ percent of total expenditures on means-tested programs.

Table 17.1 -Refer to Table 17.1.If the product sells at a market price of $3,the marginal revenue product of the fourth worker is:

If Sparkling Cleaning Service uses only one variable input,labor.The firm's short-run demand curve for labor is the:

According to the signaling effect,college education:

Assume Edward considers eating out to be a normal good.The income effect of a wage increase for Edward implies that Edward's demand for eating out will be and Edward's labor supply will be .

There are only winners from the minimum wage.

What are the effects of a minimum wage that is placed above the market equilibrium wage?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

International Trade and Public Policy

Filters

Exam 17: The Labor Market and the Distribution of Income

Teenagers may benefit from minimum-wage laws.

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

-Refer to Figure 17.2.If the hourly wage increases from $9 to $12,then:

In the years since welfare reform took place,the number of people receiving aid has gone down.

Discrimination cannot be easily measured by simply comparing average wage rates across workers.

What is the signaling effect of a college education?

Which of the following is a way to measure income?

Table 17.3 -Refer to Table 17.3.If the market price of the product is $4 and the firm can hire as many workers as it wants at a wage of $40,the firm should hire ________ workers.

Which of the following is considered a government transfer?

All else equal,when the supply of workers is plentiful,we can expect market wages to be:

The additional output produced by hiring an additional unit of labor is known as:

The incomes earned by the top one percent in the U.S.has decreased in recent years.

Table 17.3 -Refer to Table 17.3.Suppose that the market price of the product is $2.If the wage is $40,the firm should hire ________ workers.

Cash payments make up approximately ________ percent of total expenditures on means-tested programs.

Table 17.1 -Refer to Table 17.1.If the product sells at a market price of $3,the marginal revenue product of the fourth worker is:

If Sparkling Cleaning Service uses only one variable input,labor.The firm's short-run demand curve for labor is the:

According to the signaling effect,college education:

Assume Edward considers eating out to be a normal good.The income effect of a wage increase for Edward implies that Edward's demand for eating out will be ________ and Edward's labor supply will be ________.

There are only winners from the minimum wage.

What are the effects of a minimum wage that is placed above the market equilibrium wage?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

International Trade and Public Policy

Filters

Assume Edward considers eating out to be a normal good.The income effect of a wage increase for Edward implies that Edward's demand for eating out will be and Edward's labor supply will be .