Question 1

In comparison to the United States, Germany has a relatively low percentage of union membership.

Accepted Answer

A) True 
 B)False  False

Question 2

Union members earn about the same wage level as nonunion members in the same industry.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following would cause a firm's demand curve for labor to shift?

Accepted Answer

A) The price of a firm's output changes. 
B) The wage rate changes. 
C) The number of available workers changes. 
D) The wages paid by rival firms change. 
A) The price of a firm's output changes. 
B) The wage rate changes. 
C) The number of available workers changes. 
D) The wages paid by rival firms change. A

Question 4

In the United States, 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

All of the following are examples of fringe benefits except

Accepted Answer

A) health insurance. 
B) retirement payments. 
C) overtime payments. 
D) education subsidies. 
A) health insurance. 
B) retirement payments. 
C) overtime payments. 
D) education subsidies.

Question 6

In a famous series of commercials, the International Ladies' Garment Workers Union (ILGWU) urged buyers to "look for the union label" and to avoid buying clothes not made by ILGWU members.Through the commercials, the ILGWU tried to attain its goals by

Accepted Answer

A) restricting the number of ILGWU members. 
B) featherbedding. 
C) raising the marginal revenue products of ILGWU members. 
D) creating lower prices for goods made by ILGWU members. 
A) restricting the number of ILGWU members. 
B) featherbedding. 
C) raising the marginal revenue products of ILGWU members. 
D) creating lower prices for goods made by ILGWU members.

Question 7

Among possible union strategies, the one that can both raise wages and add to employment is

Accepted Answer

A) restricting the supply of workers. 
B) raising the demand curve for the product or for labor. 
C) fixing the wage. 
D) striking frequently. 
A) restricting the supply of workers. 
B) raising the demand curve for the product or for labor. 
C) fixing the wage. 
D) striking frequently.

Question 8

An investment in yourself is an investment in what economists call human capital.

Accepted Answer

A) True 
 B)False

Question 9

The demand for education is determined by the

Accepted Answer

A) demand for human capital. 
B) demand for nonhuman capital. 
C) supply of human capital. 
D) supply of nonhuman capital. 
A) demand for human capital. 
B) demand for nonhuman capital. 
C) supply of human capital. 
D) supply of nonhuman capital.

Question 10

Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience.

Accepted Answer

A) True 
 B)False

Question 11

Firms share technology with rivals,

Accepted Answer

A) in order to better compete with their rivals. 
B) in order to help out when their rivals are in trouble. 
C) to share the substantial risks of innovation. 
D) because they are required to by law. 
E) in order to pass false information to their rivals in order to drive them out of business. 
A) in order to better compete with their rivals. 
B) in order to help out when their rivals are in trouble. 
C) to share the substantial risks of innovation. 
D) because they are required to by law. 
E) in order to pass false information to their rivals in order to drive them out of business.

Question 12

Expenditures for attending college can be viewed as an investment in human capital.

Accepted Answer

A) True 
 B)False

Question 13

A labor union acts as a monopsony seller of labor.

Accepted Answer

A) True 
 B)False

Question 14

Rising productivity usually reduces workers' standards of living.

Accepted Answer

A) True 
 B)False

Question 15

Distinguish between invention and innovation.

Accepted Answer

Invention is the creation of new product

Question 16

The U.S.government enacted minimum wage legislation to protect skilled workers.

Accepted Answer

A) True 
 B)False

Question 17

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

Accepted Answer

A) True 
 B)False

Question 18

A firm will tend to follow competitors when they increase spending on R&D but will not follow them when they decrease such spending.

Accepted Answer

A) True 
 B)False

Question 19

When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles

Accepted Answer

A) perfect competition. 
B) a dual labor market. 
C) monopolistic competition. 
D) bilateral monopoly. 
A) perfect competition. 
B) a dual labor market. 
C) monopolistic competition. 
D) bilateral monopoly.

Question 20

What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?

Accepted Answer

There are three oft-cited factors that c

Exam 19: Labor and Entrepreneurship: the Human Inputs

In comparison to the United States, Germany has a relatively low percentage of union membership.

Union members earn about the same wage level as nonunion members in the same industry.

Which of the following would cause a firm's demand curve for labor to shift?

In the United States, the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

All of the following are examples of fringe benefits except

In a famous series of commercials, the International Ladies' Garment Workers Union (ILGWU) urged buyers to "look for the union label" and to avoid buying clothes not made by ILGWU members.Through the commercials, the ILGWU tried to attain its goals by

Among possible union strategies, the one that can both raise wages and add to employment is

An investment in yourself is an investment in what economists call human capital.

The demand for education is determined by the

Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience.

Firms share technology with rivals,

Expenditures for attending college can be viewed as an investment in human capital.

A labor union acts as a monopsony seller of labor.

Rising productivity usually reduces workers' standards of living.

Distinguish between invention and innovation.

The U.S.government enacted minimum wage legislation to protect skilled workers.

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

A firm will tend to follow competitors when they increase spending on R&D but will not follow them when they decrease such spending.

When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles

What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?

What Is Economics

The Economony: 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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of 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

Contemporary Issues in the Useconomy

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