Question 1

During most of the 1990s, average hours worked per week ____, then, after 2000, started to ____.

Accepted Answer

A)  rose steadily; level off 
B)  remained virtually constant; drop slowly. 
C)  were on the upswing; fall slowly. 
D)  continued to decline; level off 
A)  rose steadily; level off 
B)  remained virtually constant; drop slowly. 
C)  were on the upswing; fall slowly. 
D)  continued to decline; level off

Question 2

For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?

Accepted Answer

A)  air traffic controller 
B)  marketing manager 
C)  waitress 
D)  dentist 
A)  air traffic controller 
B)  marketing manager 
C)  waitress 
D)  dentist

Question 3

Which economist created the theory of creative destruction?

Accepted Answer

A)  William Nordhaus 
B)  Joseph Schumpeter 
C)  Adam Smith 
D)  Milton Friedman 
A)  William Nordhaus 
B)  Joseph Schumpeter 
C)  Adam Smith 
D)  Milton Friedman

Question 4

The majority of new jobs created in the service sector of the U.S.economy have been in the information sector.

Accepted Answer

A) True 
 B)False

Question 5

In a competitive labor market

Accepted Answer

A)  wages would be determined by supply and demand. 
B)  the demand curve for labor is derived like the demand curve for any other input. 
C)  the demand curve for labor is the downward-sloping portion of the MRP curve. 
D)  All of the above answers are correct. 
A)  wages would be determined by supply and demand. 
B)  the demand curve for labor is derived like the demand curve for any other input. 
C)  the demand curve for labor is the downward-sloping portion of the MRP curve. 
D)  All of the above answers are correct.

Question 6

Figure 20-2
  
-At existing wage rates, hospitals face a shortage of registered nurses.Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs.Which panel in Figure 20-2, where the broken line indicates the existing wage rate, illustrates this case?

Accepted Answer

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

Question 7

History has shown that over the long run, labor-saving technology has actually not reduced employment.

Accepted Answer

A) True 
 B)False

Question 8

The employment effect of a minimum wage increase is greater the

Accepted Answer

A)  more elastic the demand for labor. 
B)  less elastic the demand for labor. 
C)  more the wage ceiling shifts the supply curve. 
D)  more the wage floor shifts the demand curve. 
A)  more elastic the demand for labor. 
B)  less elastic the demand for labor. 
C)  more the wage ceiling shifts the supply curve. 
D)  more the wage floor shifts the demand curve.

Question 9

In general, an increase in wages will lead to some reaction in line with

Accepted Answer

A)  the income effect but not the substitution effect. 
B)  the substitution effect but not the income effect. 
C)  both the income and substitution effect. 
D)  neither the income effect nor the substitution effect. 
A)  the income effect but not the substitution effect. 
B)  the substitution effect but not the income effect. 
C)  both the income and substitution effect. 
D)  neither the income effect nor the substitution effect.

Question 10

Union membership was relatively low during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 11

Less than 13 percent of U.S.workers belong to unions.

Accepted Answer

A) True 
 B)False

Question 12

As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has

Accepted Answer

A)  fallen. 
B)  stayed roughly constant. 
C)  risen. 
D)  generally risen, but has fallen during periods of recession. 
A)  fallen. 
B)  stayed roughly constant. 
C)  risen. 
D)  generally risen, but has fallen during periods of recession.

Question 13

An individual's supply curve is backward bending.

Accepted Answer

A) True 
 B)False

Question 14

Some economists believe that education's primary function is to sort individuals by their ability rather than increase their productivity.

Accepted Answer

A) True 
 B)False

Question 15

Since a union represents individuals rather than firms, it cannot be considered a monopoly.

Accepted Answer

A) True 
 B)False

Question 16

Suppose the goal of a union is to maximize the total income of all workers it represents.In this case it will probably aim for a wage at which the elasticity of demand for workers is

Accepted Answer

A)  0. 
B)  infinite. 
C)  1. 
D)  ranging from 2 to 5. 
A)  0. 
B)  infinite. 
C)  1. 
D)  ranging from 2 to 5.

Question 17

One effect of having access to cheap foreign goods can be to raise workers' real wages.

Accepted Answer

A) True 
 B)False

Question 18

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

Accepted Answer

A) True 
 B)False

Question 19

Recent data and analysis confirms that minimum wage laws have significantly increased teenage unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Average real wages have not risen significantly since approximately 1973.

Accepted Answer

A) True 
 B)False

Exam 20: Labor and Entrepreneurship: The Human Inputs

During most of the 1990s, average hours worked per week ____, then, after 2000, started to ____.

For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?

Which economist created the theory of creative destruction?

The majority of new jobs created in the service sector of the U.S.economy have been in the information sector.

In a competitive labor market

History has shown that over the long run, labor-saving technology has actually not reduced employment.

The employment effect of a minimum wage increase is greater the

In general, an increase in wages will lead to some reaction in line with

Union membership was relatively low during the Great Depression.

Less than 13 percent of U.S.workers belong to unions.

As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has

An individual's supply curve is backward bending.

Some economists believe that education's primary function is to sort individuals by their ability rather than increase their productivity.

Since a union represents individuals rather than firms, it cannot be considered a monopoly.

Suppose the goal of a union is to maximize the total income of all workers it represents.In this case it will probably aim for a wage at which the elasticity of demand for workers is

One effect of having access to cheap foreign goods can be to raise workers' real wages.

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

Recent data and analysis confirms that minimum wage laws have significantly increased teenage unemployment.

Average real wages have not risen significantly since approximately 1973.

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

Filters

During most of the 1990s, average hours worked per week , then, after 2000, started to .