Exam 19: Labor and Entrepreneurship: the Human Inputs

A relatively high wage is predicted to be enjoyed by workers where the

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

Unions have the power to

Which economist created the theory of creative destruction?

Most innovations come from just a few large industries.

It required less labor time to buy a college education in 1995 than it did in 1965.

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

A change in wages creates a substitution and income effect on the quantity of labor supplied.

Explain the concept of "creative destruction" by innovation.Does it ensure positive economic profits in the long run?

Most innovations in the economy come from

Labor union membership, as a percent of workers, has steadily declined over the last several decades.

A person's decision to supply a certain amount of labor in a week is simultaneously a decision to consume a certain amount of leisure per week.

The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers.

How do modern markets differ from other economic systems in their capacity to produce "growth miracles"?

Figure 20-4 -In Figure 20-4, which panel depicts a union suffering unemployment during a recession rather than allowing the wage to fall?

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

Union membership in the United States has fallen compared to what it was in the 1950s.

One of the most significant developments in labor supply in recent times is the increase in the labor force participation of married women.

A college education is a(n)

Figure 20-1 -Which of the diagrams in Figure 20-1 shows the situation of an individual firm that hires labor in a perfectly competitive market?