Question 1

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 2

Cannon Mills used to be virtually the only employer in Kannapolis, North Carolina.What is the name for a single hirer of labor, and how do wages and the number of jobs available compare to a competitive labor market?

Accepted Answer

Monopsonists hire fewer workers and pay

Question 3

Landlords receive their wages in the form of rents.

Accepted Answer

A) True 
 B)False

Question 4

Those who view education as a sorting mechanism emphasize that employers value the

Accepted Answer

A) skills that people who attend college have already acquired before they enter college. 
B) docility and deference to authority learned in the classroom. 
C) analytic ability of the highly educated worker. 
D) work habits picked up in the home and school. 
A) skills that people who attend college have already acquired before they enter college. 
B) docility and deference to authority learned in the classroom. 
C) analytic ability of the highly educated worker. 
D) work habits picked up in the home and school.

Question 5

Jenny should work until her MRP equals her wage.

Accepted Answer

A) True 
 B)False

Question 6

In which of the following scenarios would the income effect be most likely to be greater than the substitution effect?

Accepted Answer

A) An increase in the minimum wage 
B) A tax on fast foods 
C) An increase in salaries for surgeons 
D) An increase in wages for day laborers 
A) An increase in the minimum wage 
B) A tax on fast foods 
C) An increase in salaries for surgeons 
D) An increase in wages for day laborers

Question 7

At existing wage rates, hospitals face a shortage of registered nurses (RNs).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 of the following is likely the cause of these findings?

Accepted Answer

A) Constant marginal productivity 
B) The cost disease 
C) A substitution effect larger than the income effect 
D) An income effect larger than the substitution effect 
A) Constant marginal productivity 
B) The cost disease 
C) A substitution effect larger than the income effect 
D) An income effect larger than the substitution effect

Question 8

Money spent on college tuition is considered human capital by economists.

Accepted Answer

A) True 
 B)False

Question 9

P = MC is a recipe for financial loss in an innovative firm established by an innovative entrepreneur.Explain.

Accepted Answer

Invention cannot be successful financial

Question 10

Teenage unemployment rates tend to be a little lower than the overall unemployment rate.

Accepted Answer

A) True 
 B)False

Question 11

Historically, revolutionary inventions and innovations have come from

Accepted Answer

A) large established companies. 
B) individuals and small new firms. 
C) firms with large research and development programs. 
D) government-sponsored entities. 
A) large established companies. 
B) individuals and small new firms. 
C) firms with large research and development programs. 
D) government-sponsored entities.

Question 12

Wages are comparatively low in markets where demand for labor is high and supply is low.

Accepted Answer

A) True 
 B)False

Question 13

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 14

After Hurricane Katrina, construction wages in New Orleans rose partly because of the loss of a working population.

Accepted Answer

A) True 
 B)False

Question 15

The demand for labor is a derived demand.Employers hire workers until the

Accepted Answer

A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero. 
A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero.

Question 16

Briefly explain Schumpeter's model of innovation.Why does an innovator's economic profit eventually reduce to zero?

Accepted Answer

Professor Schumpeter argued that the suc

Question 17

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 18

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 19

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 20

Figure 20-3  
-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.

Exam 19: Labor and Entrepreneurship: the Human Inputs

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

Cannon Mills used to be virtually the only employer in Kannapolis, North Carolina.What is the name for a single hirer of labor, and how do wages and the number of jobs available compare to a competitive labor market?

Landlords receive their wages in the form of rents.

Those who view education as a sorting mechanism emphasize that employers value the

Jenny should work until her MRP equals her wage.

In which of the following scenarios would the income effect be most likely to be greater than the substitution effect?

Money spent on college tuition is considered human capital by economists.

P = MC is a recipe for financial loss in an innovative firm established by an innovative entrepreneur.Explain.

Teenage unemployment rates tend to be a little lower than the overall unemployment rate.

Historically, revolutionary inventions and innovations have come from

Wages are comparatively low in markets where demand for labor is high and supply is low.

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.

After Hurricane Katrina, construction wages in New Orleans rose partly because of the loss of a working population.

The demand for labor is a derived demand.Employers hire workers until the

Briefly explain Schumpeter's model of innovation.Why does an innovator's economic profit eventually reduce to zero?

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?

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

A minimum wage law is predicted to produce

Figure 20-3 -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

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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