Question 1

What are the three noteworthy labor market trends that Americans have experienced for about two decades?

Accepted Answer

For about two decades, Americans have ex

Question 2

Which of the following workers would be most likely to work fewer hours as a result of a wage increase?

Accepted Answer

A) Farm worker 
B) Surgeon 
C) Lifeguard 
D) Bartender 
A) Farm worker 
B) Surgeon 
C) Lifeguard 
D) Bartender

Question 3

Unionism is much more prevalent in the United States than in other industrialized countries.

Accepted Answer

A) True 
 B)False

Question 4

Unions can be thought of as constituting

Accepted Answer

A) a monopoly element in the supply of labor. 
B) a monopoly element in the demand for labor. 
C) an oligopoly element in the supply of labor. 
D) a competitive element in the demand for labor. 
A) a monopoly element in the supply of labor. 
B) a monopoly element in the demand for labor. 
C) an oligopoly element in the supply of labor. 
D) a competitive element in the demand for labor.

Question 5

Labor markets are generally perfectly competitive markets.

Accepted Answer

A) True 
 B)False

Question 6

The labor supply curve bends backward because

Accepted Answer

A) income effects are greater than substitution effects at higher wages. 
B) substitution effects are greater than income effects at higher wages. 
C) income effects are greater than substitution effects at lower wages. 
D) substitution effects are greater than income effects at lower wages. 
A) income effects are greater than substitution effects at higher wages. 
B) substitution effects are greater than income effects at higher wages. 
C) income effects are greater than substitution effects at lower wages. 
D) substitution effects are greater than income effects at lower wages.

Question 7

The Industrial Revolution refers to the stream of new technology and the resulting growth of output that began in England toward the end of the eighteenth century.

Accepted Answer

A) True 
 B)False

Question 8

College graduates now earn nearly five times as much as their high school-educated peers, but the gap is falling.

Accepted Answer

A) True 
 B)False

Question 9

The income effect is thought to offset the substitution effect among very high wage earners.

Accepted Answer

A) True 
 B)False

Question 10

A decision to supply labor or not to supply it is also a decision to

Accepted Answer

A) earn the highest possible wage. 
B) demand or forgo a certain amount of leisure. 
C) be as productive as possible. 
D) join the union. 
A) earn the highest possible wage. 
B) demand or forgo a certain amount of leisure. 
C) be as productive as possible. 
D) join the union.

Question 11

More goods are available to the average American today than 200 years ago, but today an American has to work more hours to earn the money to purchase most items.

Accepted Answer

A) True 
 B)False

Question 12

The percentage of work time lost due to strikes in the United States has been increasing over time.

Accepted Answer

A) True 
 B)False

Question 13

The shortened work week coupled with rising hourly wages in the U.S.economy shows that

Accepted Answer

A) the income effect has been dominant. 
B) the substitution effect does not exist at all. 
C) the U.S.worker is no longer productive. 
D) workers have become increasingly lazy. 
A) the income effect has been dominant. 
B) the substitution effect does not exist at all. 
C) the U.S.worker is no longer productive. 
D) workers have become increasingly lazy.

Question 14

The supply of workers in an industry is influenced by the available working population and the nonmonetary attractiveness of the job.

Accepted Answer

A) True 
 B)False

Question 15

Economic rents can lead to large wage differentials.

Accepted Answer

A) True 
 B)False

Question 16

A trade union would likely not try to maximize

Accepted Answer

A) members in the union. 
B) income received by workers in the relevant industry. 
C) the number of workers employed in the relevant industry. 
D) net social welfare. 
A) members in the union. 
B) income received by workers in the relevant industry. 
C) the number of workers employed in the relevant industry. 
D) net social welfare.

Question 17

Explain why on average the profit levels for invention and entrepreneurship are generally so low.

Accepted Answer

Although a new invention initially impli

Question 18

Give some explanations for the decline in union membership in the United States.

Accepted Answer

One reason unionization in the United St

Question 19

Research and development refers to the activity of firms, universities, and government agencies that seek to invent new products and processes.

Accepted Answer

A) True 
 B)False

Question 20

Wages in American industry are very high because of wage laws.

Accepted Answer

A) True 
 B)False

Exam 19: Labor and Entrepreneurship: the Human Inputs

What are the three noteworthy labor market trends that Americans have experienced for about two decades?

Which of the following workers would be most likely to work fewer hours as a result of a wage increase?

Unionism is much more prevalent in the United States than in other industrialized countries.

Unions can be thought of as constituting

Labor markets are generally perfectly competitive markets.

The labor supply curve bends backward because

The Industrial Revolution refers to the stream of new technology and the resulting growth of output that began in England toward the end of the eighteenth century.

College graduates now earn nearly five times as much as their high school-educated peers, but the gap is falling.

The income effect is thought to offset the substitution effect among very high wage earners.

A decision to supply labor or not to supply it is also a decision to

More goods are available to the average American today than 200 years ago, but today an American has to work more hours to earn the money to purchase most items.

The percentage of work time lost due to strikes in the United States has been increasing over time.

The shortened work week coupled with rising hourly wages in the U.S.economy shows that

The supply of workers in an industry is influenced by the available working population and the nonmonetary attractiveness of the job.

Economic rents can lead to large wage differentials.

A trade union would likely not try to maximize

Explain why on average the profit levels for invention and entrepreneurship are generally so low.

Give some explanations for the decline in union membership in the United States.

Research and development refers to the activity of firms, universities, and government agencies that seek to invent new products and processes.

Wages in American industry are very high because of wage laws.

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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