Question 1

Which of the following best explains why productive workers can command high wages?

Accepted Answer

A)  The bargaining power of labor unions. 
B)  The presence of minimum wage legislation. 
C)  Wage and price controls that reflect the political power of labor organizations. 
D)  Competition among employers for productive workers. 
A)  The bargaining power of labor unions. 
B)  The presence of minimum wage legislation. 
C)  Wage and price controls that reflect the political power of labor organizations. 
D)  Competition among employers for productive workers.

Question 2

Test pilots are paid high wages by airplane makers primarily because

Accepted Answer

A)  the demand for labor in this area is very high relative to the demand for labor in other areas of employment. 
B)  the demand for labor in this area is very low relative to the demand for labor in other areas of employment. 
C)  the demand for labor in this category is highly elastic. 
D)  few people possess the required skills and the occupation is very risky. 
A)  the demand for labor in this area is very high relative to the demand for labor in other areas of employment. 
B)  the demand for labor in this area is very low relative to the demand for labor in other areas of employment. 
C)  the demand for labor in this category is highly elastic. 
D)  few people possess the required skills and the occupation is very risky.

Question 3

The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that

Accepted Answer

A)  worker preferences are an important source of earning differentials. 
B)  economics ranks one set of worker preferences as more desirable than another. 
C)  some people can be paid less for doing hard work while others have to be paid a premium for doing a similar task. 
D)  skill levels of laborers are a minor consideration in wage rate determination. 
A)  worker preferences are an important source of earning differentials. 
B)  economics ranks one set of worker preferences as more desirable than another. 
C)  some people can be paid less for doing hard work while others have to be paid a premium for doing a similar task. 
D)  skill levels of laborers are a minor consideration in wage rate determination.

Question 4

Which of the following could be an institutional barrier to employment?

Accepted Answer

A)  licensing requirements 
B)  labor unions 
C)  minimum wages 
D)  all of the above 
A)  licensing requirements 
B)  labor unions 
C)  minimum wages 
D)  all of the above

Question 5

Automated production methods are only attractive when they

Accepted Answer

A)  are undertaken in heavily unionized sectors of the economy. 
B)  reduce per-unit costs. 
C)  replace workers. 
D)  decrease labor productivity. 
A)  are undertaken in heavily unionized sectors of the economy. 
B)  reduce per-unit costs. 
C)  replace workers. 
D)  decrease labor productivity.

Question 6

Economic theory suggests that the standard of living of American workers would fall if the

Accepted Answer

A)  knowledge and skills of workers improved, reducing the need for workers. 
B)  United States had more natural resources. 
C)  United States turned to more automated methods of production. 
D)  productivity of American workers declined. 
A)  knowledge and skills of workers improved, reducing the need for workers. 
B)  United States had more natural resources. 
C)  United States turned to more automated methods of production. 
D)  productivity of American workers declined.

Question 7

The major determinant of an individual's income is

Accepted Answer

A)  whether or not her family is wealthy. 
B)  how well she gets along with her co-workers and boss. 
C)  how productive she is combined with demand for what she produces. 
D)  how much she enjoys the work. 
A)  whether or not her family is wealthy. 
B)  how well she gets along with her co-workers and boss. 
C)  how productive she is combined with demand for what she produces. 
D)  how much she enjoys the work.

Question 8

Joanne states: "The best way to increase the wages of workers is to increase worker productivity." Is Joanne correct? Why or why not?

Accepted Answer

Joanne is correct. High produc

Question 9

Which of the following is most likely to cause the productivity of labor to increase?

Accepted Answer

A)  Higher money wages. 
B)  A higher rate of investment in human and nonhuman capital. 
C)  More flexible working hours and improved retirement plans. 
D)  An increase in the proportion of the workforce that belongs to a labor union. 
A)  Higher money wages. 
B)  A higher rate of investment in human and nonhuman capital. 
C)  More flexible working hours and improved retirement plans. 
D)  An increase in the proportion of the workforce that belongs to a labor union.

Question 10

New technological advancements, such as robots are

Accepted Answer

A)  harmful because they put people out of work. 
B)  helpful because they improve worker productivity. 
C)  harmful because robots are likely to have electrical problems which could cause injuries to people. 
D)  both a and c above. 
A)  harmful because they put people out of work. 
B)  helpful because they improve worker productivity. 
C)  harmful because robots are likely to have electrical problems which could cause injuries to people. 
D)  both a and c above.

Question 11

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

Accepted Answer

A)  competitive forces will tend to reduce discrimination. 
B)  the wages of employees who are discriminated against will rise. 
C)  an employer who discriminates will have the same costs as those who do not discriminate. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages. 
A)  competitive forces will tend to reduce discrimination. 
B)  the wages of employees who are discriminated against will rise. 
C)  an employer who discriminates will have the same costs as those who do not discriminate. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages.

Which of the following best explains why productive workers can command high wages?

Test pilots are paid high wages by airplane makers primarily because

The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that

Which of the following could be an institutional barrier to employment?

Automated production methods are only attractive when they

Economic theory suggests that the standard of living of American workers would fall if the

The major determinant of an individual's income is

Joanne states: "The best way to increase the wages of workers is to increase worker productivity." Is Joanne correct? Why or why not?

Which of the following is most likely to cause the productivity of labor to increase?

New technological advancements, such as robots are

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters

Exam 13: Earnings, Productivity, and the Job Market

Which of the following best explains why productive workers can command high wages?

Test pilots are paid high wages by airplane makers primarily because

The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that

Which of the following could be an institutional barrier to employment?

Automated production methods are only attractive when they

Economic theory suggests that the standard of living of American workers would fall if the

The major determinant of an individual's income is

Joanne states: "The best way to increase the wages of workers is to increase worker productivity." Is Joanne correct? Why or why not?

Which of the following is most likely to cause the productivity of labor to increase?

New technological advancements, such as robots are

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters