Question 1

Figure 20-4
  
-In Figure 20-4, which panel shows the impact of union efforts to have goods produced in Asia excluded from the U.S.market?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 2

The monetary return on a college education is considered economic rent.

Accepted Answer

A) True 
 B)False

Question 3

Define the following terms and explain their importance to the study of economics.
a.minimum wage law
b.income and substitution effects
c.backward-bending labor supply curve
d.human capital theory
e.dual labor markets

Accepted Answer

a.The minimum wage law places a lower fl

Question 4

Unions became much less effective in the 1990s because of

Accepted Answer

A)  greater competition in domestic markets. 
B)  increased foreign competition. 
C)  downsizing by American firms. 
D)  All of the above are correct. 
A)  greater competition in domestic markets. 
B)  increased foreign competition. 
C)  downsizing by American firms. 
D)  All of the above are correct.

Question 5

The last two decades in the United States have seen

Accepted Answer

A)  a fall in real wages. 
B)  an increase in labor-force participation. 
C)  growth in service sector employment. 
D)  All of the above are correct. 
A)  a fall in real wages. 
B)  an increase in labor-force participation. 
C)  growth in service sector employment. 
D)  All of the above are correct.

Question 6

The percentage of work time lost due to strikes is greater than the percentage of work time lost due to coffee breaks.

Accepted Answer

A) True 
 B)False

Question 7

Evidence indicates that the average economic profits of invention are

Accepted Answer

A)  well above zero. 
B)  slightly above zero. 
C)  equal to zero. 
D)  less than zero. 
A)  well above zero. 
B)  slightly above zero. 
C)  equal to zero. 
D)  less than zero.

Question 8

The government enacted minimum wage legislation to protect skilled workers.

Accepted Answer

A) True 
 B)False

Question 9

The initial stage of the procedure in which a union and an employer negotiate over a contract is known as

Accepted Answer

A)  featherbedding. 
B)  collective bargaining. 
C)  mediation. 
D)  arbitration. 
A)  featherbedding. 
B)  collective bargaining. 
C)  mediation. 
D)  arbitration.

Question 10

The argument that the minimum wage law has significantly increased teenage unemployment is not supported by recent statistical analysis.

Accepted Answer

A) True 
 B)False

Question 11

Earnings of some highly skilled or highly specialized persons can be classified as economic rents.

Accepted Answer

A) True 
 B)False

Question 12

If an individual possesses an ability that others cannot acquire, payment to that individual is

Accepted Answer

A)  partly economic rent. 
B)  a return called the real wage. 
C)  a return from investment in human capital. 
D)  comparable to the return to well-trained nurses. 
A)  partly economic rent. 
B)  a return called the real wage. 
C)  a return from investment in human capital. 
D)  comparable to the return to well-trained nurses.

Question 13

Invention cannot be successful financial if price is

Accepted Answer

A)  greater than marginal cost because invention is based largely on social costs. 
B)  greater than marginal cost because invention is based solely on external costs. 
C)  equal to marginal cost because invention is based largely on variable costs. 
D)  equal to marginal cost because invention is based largely on fixed costs. 
A)  greater than marginal cost because invention is based largely on social costs. 
B)  greater than marginal cost because invention is based solely on external costs. 
C)  equal to marginal cost because invention is based largely on variable costs. 
D)  equal to marginal cost because invention is based largely on fixed costs.

Question 14

Recent studies suggest that a rise in the minimum wage results in a substantial cut in the demand for teen labor.

Accepted Answer

A) True 
 B)False

Question 15

The demand curve for labor slopes downward because

Accepted Answer

A)  few workers work at low wages. 
B)  capital has been substituted for labor in most industries. 
C)  of the diminishing marginal product of labor. 
D)  All of the above are true. 
A)  few workers work at low wages. 
B)  capital has been substituted for labor in most industries. 
C)  of the diminishing marginal product of labor. 
D)  All of the above are true.

Question 16

Which of the following is most likely to affect the supply of labor in any particular industry?

Accepted Answer

A)  the size of the available working population 
B)  the nonmonetary attractiveness of the job 
C)  the amount of ability and training necessary to enter the job 
D)  all of the above 
A)  the size of the available working population 
B)  the nonmonetary attractiveness of the job 
C)  the amount of ability and training necessary to enter the job 
D)  all of the above

Question 17

A worker's marginal revenue product depends upon his average product.

Accepted Answer

A) True 
 B)False

Question 18

Give some explanations for the decline in union membership in the United States.

Accepted Answer

One reason unionization in the United St

Question 19

Over 50 percent of all U.S.workers now belong to unions.

Accepted Answer

A) True 
 B)False

Question 20

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

Accepted Answer

A) True 
 B)False

Exam 20: Labor and Entrepreneurship: The Human Inputs

Figure 20-4 -In Figure 20-4, which panel shows the impact of union efforts to have goods produced in Asia excluded from the U.S.market?

The monetary return on a college education is considered economic rent.

Define the following terms and explain their importance to the study of economics. a.minimum wage law b.income and substitution effects c.backward-bending labor supply curve d.human capital theory e.dual labor markets

Unions became much less effective in the 1990s because of

The last two decades in the United States have seen

The percentage of work time lost due to strikes is greater than the percentage of work time lost due to coffee breaks.

Evidence indicates that the average economic profits of invention are

The government enacted minimum wage legislation to protect skilled workers.

The initial stage of the procedure in which a union and an employer negotiate over a contract is known as

The argument that the minimum wage law has significantly increased teenage unemployment is not supported by recent statistical analysis.

Earnings of some highly skilled or highly specialized persons can be classified as economic rents.

If an individual possesses an ability that others cannot acquire, payment to that individual is

Invention cannot be successful financial if price is

Recent studies suggest that a rise in the minimum wage results in a substantial cut in the demand for teen labor.

The demand curve for labor slopes downward because

Which of the following is most likely to affect the supply of labor in any particular industry?

A worker's marginal revenue product depends upon his average product.

Give some explanations for the decline in union membership in the United States.

Over 50 percent of all U.S.workers now belong to unions.

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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