Question 1

An effective craft union acts as a monopoly

Accepted Answer

A)  demander of labor. 
B)  seller of labor. 
C)  demander of capital. 
D)  seller of capital. 
A)  demander of labor. 
B)  seller of labor. 
C)  demander of capital. 
D)  seller of capital.

Question 2

The derived demand and, consequently, the demand curve for labor are determined by

Accepted Answer

A)  labor's wage. 
B)  labor's marginal revenue. 
C)  the marginal cost of the input labor. 
D)  labor's marginal revenue product. 
A)  labor's wage. 
B)  labor's marginal revenue. 
C)  the marginal cost of the input labor. 
D)  labor's marginal revenue product.

Question 3

For which of the following is there no such thing as a "price?"

Accepted Answer

A)  labor 
B)  land 
C)  entrepreneurship 
D)  none of the above 
A)  labor 
B)  land 
C)  entrepreneurship 
D)  none of the above

Question 4

In the U.S.the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

Accepted Answer

A) True 
 B)False

Question 5

The shortened work week coupled with rising hourly wages in the U.S.economy shows that

Accepted Answer

A)  the income effect has been dominant. 
B)  the substitution effect does not exist at all. 
C)  the U.S.worker is no longer productive. 
D)  workers have become increasingly lazy. 
A)  the income effect has been dominant. 
B)  the substitution effect does not exist at all. 
C)  the U.S.worker is no longer productive. 
D)  workers have become increasingly lazy.

Question 6

A minimum wage law is predicted to produce

Accepted Answer

A)  higher unemployment among young and inexperienced workers. 
B)  higher unemployment among all workers. 
C)  lower unemployment among young and inexperienced workers. 
D)  increased hiring of young and inexperienced workers. 
A)  higher unemployment among young and inexperienced workers. 
B)  higher unemployment among all workers. 
C)  lower unemployment among young and inexperienced workers. 
D)  increased hiring of young and inexperienced workers.

Question 7

To the extent that high incomes can be attributed to very high demand for very scarce abilities, the labor supply effects of a substantial increase in the tax rate

Accepted Answer

A)  will be zero as long as the labor supply curve is vertical. 
B)  will be significant because the demand curve is fixed. 
C)  cannot be predicted because the substitution and income effects offset each other. 
D)  will be zero as long as there is no economic rent in the income. 
A)  will be zero as long as the labor supply curve is vertical. 
B)  will be significant because the demand curve is fixed. 
C)  cannot be predicted because the substitution and income effects offset each other. 
D)  will be zero as long as there is no economic rent in the income.

Question 8

The substitution effect of a decrease in the wage rate would lead most people to

Accepted Answer

A)  supply less labor and demand less leisure. 
B)  supply less labor and demand more leisure. 
C)  supply more labor and demand less leisure. 
D)  supply more labor and demand more leisure. 
A)  supply less labor and demand less leisure. 
B)  supply less labor and demand more leisure. 
C)  supply more labor and demand less leisure. 
D)  supply more labor and demand more leisure.

Question 9

An economist would describe college fees as

Accepted Answer

A)  an investment in human capital. 
B)  a transfer payment. 
C)  a waste of parents' money. 
D)  an economic loss. 
A)  an investment in human capital. 
B)  a transfer payment. 
C)  a waste of parents' money. 
D)  an economic loss.

Question 10

The percentage of work time lost due to strikes in the United States has been increasing over time.

Accepted Answer

A) True 
 B)False

Question 11

Unions can be thought of as constituting

Accepted Answer

A)  a monopoly element in the supply of labor. 
B)  a monopoly element in the demand for labor. 
C)  an oligopoly element in the supply of labor. 
D)  a competitive element in the demand for labor. 
A)  a monopoly element in the supply of labor. 
B)  a monopoly element in the demand for labor. 
C)  an oligopoly element in the supply of labor. 
D)  a competitive element in the demand for labor.

Question 12

The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers.

Accepted Answer

A)  decrease 
B)  increase 
C)  leave unaffected 
D)  be impossible to predict 
A)  decrease 
B)  increase 
C)  leave unaffected 
D)  be impossible to predict

Question 13

Collective bargaining is a process used by unions and management to settle upon the terms of a labor contract.

Accepted Answer

A) True 
 B)False

Question 14

Governmental rules that significantly promoted entrepreneurship first became prominent during the

Accepted Answer

A)  Great Recession. 
B)  Age of Enlightenment. 
C)  Great Depression. 
D)  Industrial Revolution. 
A)  Great Recession. 
B)  Age of Enlightenment. 
C)  Great Depression. 
D)  Industrial Revolution.

Question 15

Many experts on the nursing shortage insist that, in addition to higher money wages, other ways will have to be found to make the nursing profession more attractive, including, for example, more respect from physicians and administrators, more flexible schedules, and more secure parking lots.These facts illustrate the concept of

Accepted Answer

A)  exploitation. 
B)  pecuniary principles. 
C)  economic rent. 
D)  nonmonetary attractiveness. 
A)  exploitation. 
B)  pecuniary principles. 
C)  economic rent. 
D)  nonmonetary attractiveness.

Question 16

A relatively high wage is predicted to be enjoyed by workers where

Accepted Answer

A)  the population is large relative to industrial activity. 
B)  the jobs are disagreeable or dangerous. 
C)  the jobs are pleasant and satisfying. 
D)  demand is weak and supply is high. 
A)  the population is large relative to industrial activity. 
B)  the jobs are disagreeable or dangerous. 
C)  the jobs are pleasant and satisfying. 
D)  demand is weak and supply is high.

Question 17

Since women earn less on average than men, we would expect that the substitution effect of a wage change would be more likely to dominate for women and the income effect would be more likely to dominate for men.

Accepted Answer

A) True 
 B)False

Question 18

Explain how productivity growth has led to labor market realignment in the United States.

Accepted Answer

Productivity has cut jobs drastically in

Question 19

Explain the relationship between the minimum wage and the unemployment rate for teenagers.

Accepted Answer

Increases in the minimum wage lead to in

Question 20

Rising productivity usually reduces workers' standards of living.

Accepted Answer

A) True 
 B)False

Exam 20: Labor and Entrepreneurship: The Human Inputs

An effective craft union acts as a monopoly

The derived demand and, consequently, the demand curve for labor are determined by

For which of the following is there no such thing as a "price?"

In the U.S.the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

The shortened work week coupled with rising hourly wages in the U.S.economy shows that

A minimum wage law is predicted to produce

To the extent that high incomes can be attributed to very high demand for very scarce abilities, the labor supply effects of a substantial increase in the tax rate

The substitution effect of a decrease in the wage rate would lead most people to

An economist would describe college fees as

The percentage of work time lost due to strikes in the United States has been increasing over time.

Unions can be thought of as constituting

The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers.

Collective bargaining is a process used by unions and management to settle upon the terms of a labor contract.

Governmental rules that significantly promoted entrepreneurship first became prominent during the

A relatively high wage is predicted to be enjoyed by workers where

Since women earn less on average than men, we would expect that the substitution effect of a wage change would be more likely to dominate for women and the income effect would be more likely to dominate for men.

Explain how productivity growth has led to labor market realignment in the United States.

Explain the relationship between the minimum wage and the unemployment rate for teenagers.

Rising productivity usually reduces workers' standards of living.

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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