Question 1

Innovation tends to be an extremely competitive activity that allows few opportunities for firms to share information with one another.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not true of minimum wages?

Accepted Answer

A) They have little effect on highly skilled workers. 
B) They raise incomes of unskilled laborers who have jobs. 
C) They prevent some willing workers from getting jobs. 
D) They decrease wages for unskilled workers. 
A) They have little effect on highly skilled workers. 
B) They raise incomes of unskilled laborers who have jobs. 
C) They prevent some willing workers from getting jobs. 
D) They decrease wages for unskilled workers.

Question 3

Small firms and entrepreneurs tend to focus on smaller, incremental improvements rather than revolutionary advances.

Accepted Answer

A) True 
 B)False

Question 4

A minimum wage law might increase wages without reducing employment if the hiring firm is

Accepted Answer

A) in perfect competition. 
B) a monopolist. 
C) a monopolistic competitor. 
D) a monopsonist. 
A) in perfect competition. 
B) a monopolist. 
C) a monopolistic competitor. 
D) a monopsonist.

Question 5

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

Accepted Answer

A) True 
 B)False

Question 6

Doctors demand large salaries in part because

Accepted Answer

A) they are forbidden by U.S.law from receiving economic rent. 
B) most doctors have backward-bending labor supply curves. 
C) they participate in the secondary labor market. 
D) they have made significant investments in human capital. 
A) they are forbidden by U.S.law from receiving economic rent. 
B) most doctors have backward-bending labor supply curves. 
C) they participate in the secondary labor market. 
D) they have made significant investments in human capital.

Question 7

Which of the following has no market "price"?

Accepted Answer

A) Labor 
B) Capital 
C) Entrepreneurship 
D) Fixed factors 
A) Labor 
B) Capital 
C) Entrepreneurship 
D) Fixed factors

Exam 19: Labor and Entrepreneurship: the Human Inputs

Innovation tends to be an extremely competitive activity that allows few opportunities for firms to share information with one another.

Which of the following is not true of minimum wages?

Small firms and entrepreneurs tend to focus on smaller, incremental improvements rather than revolutionary advances.

A minimum wage law might increase wages without reducing employment if the hiring firm is

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

Doctors demand large salaries in part because

Which of the following has no market "price"?

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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