Question 1

Why might the poorest of the poor be better off in a high growth economy rather than one that prioritized the achievement of income equality?

Accepted Answer

In a growth-oriented economy, workers wi

Question 2

Which of the following is an example of pay equality?

Accepted Answer

A)  Male and female truck drivers with the same level of experience should receive the same pay. 
B)  Unionized and nonunionized truck drivers do the same job and should receive the same pay. 
C)  Associate professors and assistant professors should receive the same pay. 
D)  Nurses and university lecturers both provide valuable services and should receive the same pay. 
A)  Male and female truck drivers with the same level of experience should receive the same pay. 
B)  Unionized and nonunionized truck drivers do the same job and should receive the same pay. 
C)  Associate professors and assistant professors should receive the same pay. 
D)  Nurses and university lecturers both provide valuable services and should receive the same pay.

Question 3

Approximately how much higher are wages in union jobs than in comparable nonunion jobs?

Accepted Answer

A)  0-10 percent 
B)  10-25 percent 
C)  25-35 percent 
D)  35-50 percent 
A)  0-10 percent 
B)  10-25 percent 
C)  25-35 percent 
D)  35-50 percent

Question 4

Which of the following government funded programs is NOT considered a welfare program?

Accepted Answer

A)  Employment Insurance 
B)  Medical Services Plan 
C)  Guaranteed Income Supplement 
D)  Ontario Child Benefit 
A)  Employment Insurance 
B)  Medical Services Plan 
C)  Guaranteed Income Supplement 
D)  Ontario Child Benefit

Question 5

Which of the following best describes the concept of derived demand?

Accepted Answer

A)  The price of land used to grow corn helps determine the price of corn. 
B)  The price of corn helps determines the price of land used to grow corn. 
C)  Cheap labour means cheap corn. 
D)  The price of land used to grow corn is inversely related to the price of corn. 
A)  The price of land used to grow corn helps determine the price of corn. 
B)  The price of corn helps determines the price of land used to grow corn. 
C)  Cheap labour means cheap corn. 
D)  The price of land used to grow corn is inversely related to the price of corn.

Question 6

Approximately what percentage of national income goes to wages and salaries for labour services?

Accepted Answer

A)  45 percent 
B)  60 percent 
C)  70 percent 
D)  90 percent 
A)  45 percent 
B)  60 percent 
C)  70 percent 
D)  90 percent

Question 7

Provide a definition and an example of derived demand.

Accepted Answer

Derived demand in the input market is de

Question 8

An increase in the price of a firm's output will shift the firm's demand curve for labour to the right, other things being equal.

Accepted Answer

A) True 
 B)False

Question 9

When labour is a firm's only variable input in its production process, what point will a profit-maximizing firm continue to employ additional workers until?

Accepted Answer

A) as long as the marginal revenue product of labour > the marginal resource cost B) as long as the marginal product of labour = 0 C) as long as the marginal product of labour > 0 D) as long as the marginal revenue product of labour < the marginal resource cost A) as long as the marginal revenue product of labour > the marginal resource cost B) as long as the marginal product of labour = 0 C) as long as the marginal product of labour > 0 D) as long as the marginal revenue product of labour < the marginal resource cost

Question 10

Why does the measured distribution of income today appear more unequal than in the 1950s?

Accepted Answer

A)  partly because of an increase in single-income families 
B)  partly because of an increase in the rate of divorce 
C)  partly because of a decrease in the number of two-income families 
D)  partly because of a reduction in the divorce rate 
A)  partly because of an increase in single-income families 
B)  partly because of an increase in the rate of divorce 
C)  partly because of a decrease in the number of two-income families 
D)  partly because of a reduction in the divorce rate

Question 11

What is the term for the relationship between the wage rate and the quantity of labour that employers wish to hire?

Accepted Answer

A)  an individual supply curve for labour 
B)  the market demand curve for labour 
C)  the market supply curve for labour 
D)  an individual demand curve for labour 
A)  an individual supply curve for labour 
B)  the market demand curve for labour 
C)  the market supply curve for labour 
D)  an individual demand curve for labour

Question 12

Employers that provide an on-site daycare centre will likely pay lower wages, ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 13

What would an increase in the price of a resource cause?

Accepted Answer

A)  an increase in the price of substitute resources in production 
B)  producers to use more of the resource in the production of their goods 
C)  consumers to substitute other products for goods that increase in price as the result of the higher resource price 
D)  an increase in the demand for products that use the resource intensely 
A)  an increase in the price of substitute resources in production 
B)  producers to use more of the resource in the production of their goods 
C)  consumers to substitute other products for goods that increase in price as the result of the higher resource price 
D)  an increase in the demand for products that use the resource intensely

Question 14

Which of the following best describes schooling and other types of training?

Accepted Answer

A)  They have no opportunity cost for the unemployed. 
B)  They are regarded as investment in human capital. 
C)  They are not typically the cause of income differentials. 
D)  They have no effect on the demand for labour. 
A)  They have no opportunity cost for the unemployed. 
B)  They are regarded as investment in human capital. 
C)  They are not typically the cause of income differentials. 
D)  They have no effect on the demand for labour.

Question 15

Under what circumstances might a binding minimum wage be effective in easing the burden on the poor?

Accepted Answer

A)  only if the demand for unskilled labour is relatively elastic 
B)  only if the demand for unskilled labour is relatively inelastic 
C)  only if the minimum is substantially above the equilibrium wage rate 
D)  only if it doesn't increase the firm's marginal cost 
A)  only if the demand for unskilled labour is relatively elastic 
B)  only if the demand for unskilled labour is relatively inelastic 
C)  only if the minimum is substantially above the equilibrium wage rate 
D)  only if it doesn't increase the firm's marginal cost

Question 16

Which of the following would NOT shift the market supply of labour resources?

Accepted Answer

A)  the amount of immigration allowed 
B)  the market wage rate 
C)  the number of hours workers are willing to work 
D)  changes in a nation's working-age population 
A)  the amount of immigration allowed 
B)  the market wage rate 
C)  the number of hours workers are willing to work 
D)  changes in a nation's working-age population

Question 17

When a firm evaluates the contribution of a worker to its profits, it must first calculate the worker's contribution to revenue. What must the firm subtract from revenue to calculate profit?

Accepted Answer

A)  the worker's average revenue 
B)  the worker's marginal productivity 
C)  the worker's wage 
D)  the worker's output 
A)  the worker's average revenue 
B)  the worker's marginal productivity 
C)  the worker's wage 
D)  the worker's output

Question 18

There is a strong, positive correlation between educational attainment and lifetime earnings.

Accepted Answer

A) True 
 B)False

Question 19

When are people at their peak in terms of productivity?

Accepted Answer

A)  when they start their first job 
B)  when they are young 
C)  when they are about to retire 
D)  when they are middle-aged 
A)  when they start their first job 
B)  when they are young 
C)  when they are about to retire 
D)  when they are middle-aged

Question 20

If labour demand is downward sloping and labour supply is upward sloping, then when labour demand increases faster than labour supply, what is the effect on real wages?

Accepted Answer

A)  They will stay the same 
B)  They will increase 
C)  They will decrease 
D)  They may increase, decrease, or stay the same depending on the relative slopes. 
A)  They will stay the same 
B)  They will increase 
C)  They will decrease 
D)  They may increase, decrease, or stay the same depending on the relative slopes.

Why might the poorest of the poor be better off in a high growth economy rather than one that prioritized the achievement of income equality?

Which of the following is an example of pay equality?

Approximately how much higher are wages in union jobs than in comparable nonunion jobs?

Which of the following government funded programs is NOT considered a welfare program?

Which of the following best describes the concept of derived demand?

Approximately what percentage of national income goes to wages and salaries for labour services?

Provide a definition and an example of derived demand.

An increase in the price of a firm's output will shift the firm's demand curve for labour to the right, other things being equal.

When labour is a firm's only variable input in its production process, what point will a profit-maximizing firm continue to employ additional workers until?

Why does the measured distribution of income today appear more unequal than in the 1950s?

What is the term for the relationship between the wage rate and the quantity of labour that employers wish to hire?

Employers that provide an on-site daycare centre will likely pay lower wages, ceteris paribus.

What would an increase in the price of a resource cause?

Which of the following best describes schooling and other types of training?

Under what circumstances might a binding minimum wage be effective in easing the burden on the poor?

Which of the following would NOT shift the market supply of labour resources?

When a firm evaluates the contribution of a worker to its profits, it must first calculate the worker's contribution to revenue. What must the firm subtract from revenue to calculate profit?

There is a strong, positive correlation between educational attainment and lifetime earnings.

When are people at their peak in terms of productivity?

If labour demand is downward sloping and labour supply is upward sloping, then when labour demand increases faster than labour supply, what is the effect on real wages?

The Role and Method of Economics

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Environment

Filters

Exam 11: Labour Markets and the Distribution of Income

Why might the poorest of the poor be better off in a high growth economy rather than one that prioritized the achievement of income equality?

Which of the following is an example of pay equality?

Approximately how much higher are wages in union jobs than in comparable nonunion jobs?

Which of the following government funded programs is NOT considered a welfare program?

Which of the following best describes the concept of derived demand?

Approximately what percentage of national income goes to wages and salaries for labour services?

Provide a definition and an example of derived demand.

An increase in the price of a firm's output will shift the firm's demand curve for labour to the right, other things being equal.

When labour is a firm's only variable input in its production process, what point will a profit-maximizing firm continue to employ additional workers until?

Why does the measured distribution of income today appear more unequal than in the 1950s?

What is the term for the relationship between the wage rate and the quantity of labour that employers wish to hire?

Employers that provide an on-site daycare centre will likely pay lower wages, ceteris paribus.

What would an increase in the price of a resource cause?

Which of the following best describes schooling and other types of training?

Under what circumstances might a binding minimum wage be effective in easing the burden on the poor?

Which of the following would NOT shift the market supply of labour resources?

When a firm evaluates the contribution of a worker to its profits, it must first calculate the worker's contribution to revenue. What must the firm subtract from revenue to calculate profit?

There is a strong, positive correlation between educational attainment and lifetime earnings.

When are people at their peak in terms of productivity?

If labour demand is downward sloping and labour supply is upward sloping, then when labour demand increases faster than labour supply, what is the effect on real wages?

The Role and Method of Economics

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Environment

Filters