Question 1

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

Accepted Answer

A) True 
 B)False

Question 2

In 1972, a very controversial study asserted that income differences among individuals did not depend on genetic differences in reasoning ability, or differences between schools, or family background.Moreover, the effects of level of schooling are much less than previously understood.After controlling for all of these background variables, much of the variation in earnings appeared to be random.From this analysis, one might reach the very controversial conclusion that earnings depended to a very great extent on

Accepted Answer

A)  human capital. 
B)  ability. 
C)  schooling. 
D)  luck. 
A)  human capital. 
B)  ability. 
C)  schooling. 
D)  luck.

Question 3

Average hours worked per week have ____ since the early 1900s.

Accepted Answer

A)  declined by almost 7 percent 
B)  risen by almost 15 percent 
C)  risen by almost 7 percent 
D)  declined by almost 35 percent 
A)  declined by almost 7 percent 
B)  risen by almost 15 percent 
C)  risen by almost 7 percent 
D)  declined by almost 35 percent

Question 4

Unions often have the power to push wages above competitive levels.

Accepted Answer

A) True 
 B)False

Question 5

What type of cost is not relevant to the process of research and development or invention in general?

Accepted Answer

A)  fixed cost 
B)  marginal cost 
C)  variable cost 
D)  social cost 
A)  fixed cost 
B)  marginal cost 
C)  variable cost 
D)  social cost

Question 6

Most collective bargaining situations lead to strikes.

Accepted Answer

A) True 
 B)False

Question 7

Theoretically, the price of a field hand on the New Orleans slave market would have

Accepted Answer

A)  varied directly with the price of cotton. 
B)  risen as interest rates fell. 
C)  risen when the importation of slaves became illegal. 
D)  All of the above are true. 
A)  varied directly with the price of cotton. 
B)  risen as interest rates fell. 
C)  risen when the importation of slaves became illegal. 
D)  All of the above are true.

Question 8

In the collective bargaining process

Accepted Answer

A)  supply and demand analysis is used to determine the wage. 
B)  the contract can legally cover only the wage or salary determined. 
C)  there is often heated discussion with threats of strikes and counterthreats of lockout. 
D)  the negotiation period is limited to thirty days. 
A)  supply and demand analysis is used to determine the wage. 
B)  the contract can legally cover only the wage or salary determined. 
C)  there is often heated discussion with threats of strikes and counterthreats of lockout. 
D)  the negotiation period is limited to thirty days.

Question 9

The price of leisure is the

Accepted Answer

A)  wage rate. 
B)  interest rate. 
C)  discount rate. 
D)  rate of return on investment. 
A)  wage rate. 
B)  interest rate. 
C)  discount rate. 
D)  rate of return on investment.

Question 10

College graduates now earn nearly five times as much as their high school-educated peers but the gap is falling.

Accepted Answer

A) True 
 B)False

Question 11

If the MRP of labor is below the wage rate, the firm should lay off workers.

Accepted Answer

A) True 
 B)False

Question 12

What are the three noteworthy labor market trends that Americans have experienced for about two decades?

Accepted Answer

For about two decades Americans have exp

Question 13

In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output.

Accepted Answer

A) True 
 B)False

Question 14

Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner.Explain how collective bargaining would be used in wage negotiations and the role of player strikes.

Accepted Answer

Collective bargaining asks the player an

Question 15

Discuss the historic increases and decreases in unionism in the United States and how it affects current labor relations today.

Accepted Answer

Unions are no longer as important as the

Question 16

A college education is a(n)

Accepted Answer

A)  investment in human capital. 
B)  form of innovation. 
C)  public good. 
D)  mediated settlement. 
A)  investment in human capital. 
B)  form of innovation. 
C)  public good. 
D)  mediated settlement.

Question 17

Wages will tend to be high in labor markets where supply is relatively high and demand is relatively weak.

Accepted Answer

A) True 
 B)False

Question 18

Anything that influences a good's price or the marginal physical product of labor will influence wages.

Accepted Answer

A) True 
 B)False

Question 19

The goal of a union may be to maximize the

Accepted Answer

A)  number of union members. 
B)  income received by workers in the relevant industry. 
C)  number of workers employed in the relevant industry. 
D)  All of the above are correct. 
A)  number of union members. 
B)  income received by workers in the relevant industry. 
C)  number of workers employed in the relevant industry. 
D)  All of the above are correct.

Question 20

It is possible to analyze education decisions in a manner similar to the decision to acquire more

Accepted Answer

A)  capital. 
B)  leisure. 
C)  work. 
D)  goods and services. 
A)  capital. 
B)  leisure. 
C)  work. 
D)  goods and services.

Exam 20: Labor and Entrepreneurship: The Human Inputs

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

Average hours worked per week have ____ since the early 1900s.

Unions often have the power to push wages above competitive levels.

What type of cost is not relevant to the process of research and development or invention in general?

Most collective bargaining situations lead to strikes.

Theoretically, the price of a field hand on the New Orleans slave market would have

In the collective bargaining process

The price of leisure is the

College graduates now earn nearly five times as much as their high school-educated peers but the gap is falling.

If the MRP of labor is below the wage rate, the firm should lay off workers.

What are the three noteworthy labor market trends that Americans have experienced for about two decades?

In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output.

Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner.Explain how collective bargaining would be used in wage negotiations and the role of player strikes.

Discuss the historic increases and decreases in unionism in the United States and how it affects current labor relations today.

A college education is a(n)

Wages will tend to be high in labor markets where supply is relatively high and demand is relatively weak.

Anything that influences a good's price or the marginal physical product of labor will influence wages.

The goal of a union may be to maximize the

It is possible to analyze education decisions in a manner similar to the decision to acquire more

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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