Question 1

One of the problems with calculating the true amount of discrimination that takes place in the labor market is:

Accepted Answer

A) the difficulty in measuring average wage differentials. 
B) inadequate reporting of discrimination. 
C) the difficulty of measuring productivity differences across workers. 
D) that inflation leads to higher wages over time. 
A) the difficulty in measuring average wage differentials. 
B) inadequate reporting of discrimination. 
C) the difficulty of measuring productivity differences across workers. 
D) that inflation leads to higher wages over time.

Question 2

Explain why the demand for labor is a derived demand.

Accepted Answer

The demand for labor

Question 3

Government tax and government spending programs ________ the 2004 poverty rate.

Accepted Answer

A) decreased 
B) increased 
C) did not effect 
D) eliminated 
A) decreased 
B) increased 
C) did not effect 
D) eliminated

Question 4

Explain the income effect and the substitution effect due to an increase in the wage rate.

Accepted Answer

Leisure is considered a normal good,so t

Question 5

The idea that the demand for autoworkers stems from the demand for automobiles is known as:

Accepted Answer

A) the value of the marginal product of autoworkers. 
B) derived demand. 
C) indirect demand. 
D) output demand. 
A) the value of the marginal product of autoworkers. 
B) derived demand. 
C) indirect demand. 
D) output demand.

Question 6

A reason for the increase in demand for workers with high levels of labor skills is:

Accepted Answer

A) greater taxes paid on income earned. 
B) increased technological advances. 
C) reduced international trade from protectionism. 
D) B and C are correct. 
A) greater taxes paid on income earned. 
B) increased technological advances. 
C) reduced international trade from protectionism. 
D) B and C are correct.

Question 7

The demand for labor is more inelastic in the short run.This makes the short-run demand curve steeper compared to the long-run curve.

Accepted Answer

A) True 
 B)False

Question 8

Recall the application on state lotteries and distribution of Income,how do government policies affect the distribution of income?

Accepted Answer

A) Higher-income household contributes a larger percent of its income and more than the lower-income households. 
B) Lower-income household contributes a larger percent of its income. 
C) A low-income household spends about the same per yer on lotteries as a medium and high income households. 
D) B and C are correct. 
A) Higher-income household contributes a larger percent of its income and more than the lower-income households. 
B) Lower-income household contributes a larger percent of its income. 
C) A low-income household spends about the same per yer on lotteries as a medium and high income households. 
D) B and C are correct.

Question 9

The implementation of TANF helped reduce the number of people on welfare.

Accepted Answer

A) True 
 B)False

Question 10

Graphically illustrate and explain the effect of an increase in the marginal product of labor on the demand curve for labor.

Accepted Answer

An increase in MP will cause t

Question 11

an appliances manufacturer adopts a new technology that,ceteris paribus,increases the productivity of capital.At the same time,its employees unionize and demand higher wages.Assume that for this manufacturer capital and labor are substitutable.Which of the following is most likely to occur?

Accepted Answer

A) Capital will be substituted for labor. 
B) Labor will be substituted for capital. 
C) Output increases as do the prices of capital and labor. 
D) Output decreases as does the price of cars. 
A) Capital will be substituted for labor. 
B) Labor will be substituted for capital. 
C) Output increases as do the prices of capital and labor. 
D) Output decreases as does the price of cars.

Question 12

A small supply of workers in a particular occupation could be due to:

Accepted Answer

A) artificial barriers to entry. 
B) few people with the required skills. 
C) high training costs. 
D) all of the above. 
A) artificial barriers to entry. 
B) few people with the required skills. 
C) high training costs. 
D) all of the above.

Question 13

A fast-food restaurant currently hires the amount of labor that maximizes profit at a market-determined wage of $3.00 per hour.If government legislation now states that all firms must pay their workers a minimum of $5.00 per hour,how will this legislation affect the firm's hiring decision?

Accepted Answer

The firm's demand curve for la

Question 14

-Refer to Figure 17.2.If the hourly wage is $15,then:

Accepted Answer

A) supply for labor will increase. 
B) quantity supplied of labor is 25,000 hours. 
C) demand for labor will increase. 
D) quantity demanded for labor is 25,000 hours. 
A) supply for labor will increase. 
B) quantity supplied of labor is 25,000 hours. 
C) demand for labor will increase. 
D) quantity demanded for labor is 25,000 hours.

Question 15

Disposable income is defined as:

Accepted Answer

A) all earnings received from labor and real estate markets. 
B) all income from stocks,bonds,and real estate. 
C) market income plus government transfers minus taxes paid. 
D) all income minus contributions to 401K accounts and IRAs. 
A) all earnings received from labor and real estate markets. 
B) all income from stocks,bonds,and real estate. 
C) market income plus government transfers minus taxes paid. 
D) all income minus contributions to 401K accounts and IRAs.

Question 16

What happens when a firm encounters diminishing returns? What causes diminishing returns?

Accepted Answer

The firm encounters diminishin

Question 17

Higher wages could lead workers to choose to work less hours.

Accepted Answer

A) True 
 B)False

Question 18

Table 17.1
-Refer to Table 17.1.The marginal product of the fourth worker is:

Accepted Answer

A) 30. 
B) 20. 
C) 10. 
D) 5. 
A) 30. 
B) 20. 
C) 10. 
D) 5.

Question 19

The output effect is defined as:

Accepted Answer

A) the demand for the input whose price has increased will decrease,but the demand for the other factors will increase. 
B) the change in the quantity of labor demanded resulting from a change in the quantity of output produced. 
C) the change in the quantity of labor demanded resulting from an increase in the price of other inputs. 
D) the demand for the factor whose price has increased will increase,but the demand for the other factors will decrease. 
A) the demand for the input whose price has increased will decrease,but the demand for the other factors will increase. 
B) the change in the quantity of labor demanded resulting from a change in the quantity of output produced. 
C) the change in the quantity of labor demanded resulting from an increase in the price of other inputs. 
D) the demand for the factor whose price has increased will increase,but the demand for the other factors will decrease.

Question 20

Which of the following could lead to an increase in labor supply?

Accepted Answer

A) more people retire at a younger age 
B) an increase in labor force participation 
C) tighter restrictions on immigration policy 
D) an increase in the wage rate 
A) more people retire at a younger age 
B) an increase in labor force participation 
C) tighter restrictions on immigration policy 
D) an increase in the wage rate

One of the problems with calculating the true amount of discrimination that takes place in the labor market is:

Explain why the demand for labor is a derived demand.

Government tax and government spending programs ________ the 2004 poverty rate.

Explain the income effect and the substitution effect due to an increase in the wage rate.

The idea that the demand for autoworkers stems from the demand for automobiles is known as:

A reason for the increase in demand for workers with high levels of labor skills is:

The demand for labor is more inelastic in the short run.This makes the short-run demand curve steeper compared to the long-run curve.

Recall the application on state lotteries and distribution of Income,how do government policies affect the distribution of income?

The implementation of TANF helped reduce the number of people on welfare.

Graphically illustrate and explain the effect of an increase in the marginal product of labor on the demand curve for labor.

an appliances manufacturer adopts a new technology that,ceteris paribus,increases the productivity of capital.At the same time,its employees unionize and demand higher wages.Assume that for this manufacturer capital and labor are substitutable.Which of the following is most likely to occur?

A small supply of workers in a particular occupation could be due to:

A fast-food restaurant currently hires the amount of labor that maximizes profit at a market-determined wage of $3.00 per hour.If government legislation now states that all firms must pay their workers a minimum of $5.00 per hour,how will this legislation affect the firm's hiring decision?

-Refer to Figure 17.2.If the hourly wage is $15,then:

Disposable income is defined as:

What happens when a firm encounters diminishing returns? What causes diminishing returns?

Higher wages could lead workers to choose to work less hours.

Table 17.1 -Refer to Table 17.1.The marginal product of the fourth worker is:

The output effect is defined as:

Which of the following could lead to an increase in labor supply?

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

One of the problems with calculating the true amount of discrimination that takes place in the labor market is:

Explain why the demand for labor is a derived demand.

Government tax and government spending programs ________ the 2004 poverty rate.

Explain the income effect and the substitution effect due to an increase in the wage rate.

The idea that the demand for autoworkers stems from the demand for automobiles is known as:

A reason for the increase in demand for workers with high levels of labor skills is:

The demand for labor is more inelastic in the short run.This makes the short-run demand curve steeper compared to the long-run curve.

Recall the application on state lotteries and distribution of Income,how do government policies affect the distribution of income?

The implementation of TANF helped reduce the number of people on welfare.

Graphically illustrate and explain the effect of an increase in the marginal product of labor on the demand curve for labor.

an appliances manufacturer adopts a new technology that,ceteris paribus,increases the productivity of capital.At the same time,its employees unionize and demand higher wages.Assume that for this manufacturer capital and labor are substitutable.Which of the following is most likely to occur?

A small supply of workers in a particular occupation could be due to:

A fast-food restaurant currently hires the amount of labor that maximizes profit at a market-determined wage of $3.00 per hour.If government legislation now states that all firms must pay their workers a minimum of $5.00 per hour,how will this legislation affect the firm's hiring decision?

-Refer to Figure 17.2.If the hourly wage is $15,then:

Disposable income is defined as:

What happens when a firm encounters diminishing returns? What causes diminishing returns?

Higher wages could lead workers to choose to work less hours.

Table 17.1 -Refer to Table 17.1.The marginal product of the fourth worker is:

The output effect is defined as:

Which of the following could lead to an increase in labor supply?

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