Question 1

It is possible to analyze education decisions in a manner similar to the decision to acquire more

Accepted Answer

A) capital. 
B) leisure. 
C) work. 
D) goods and services. 
A) capital. 
B) leisure. 
C) work. 
D) goods and services.

Question 2

The primary reason unionization in the United States has been declining is the shift of the U.S. labor force into service industries and out of manufacturing.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Rising labor productivity means that less labor is needed to produce the same level of output.

Accepted Answer

A) True 
 B)False

Question 5

One effect of having access to cheap foreign goods can be to raise workers' real wages.

Accepted Answer

A) True 
 B)False

Question 6

What is the most probable reason why garbage men have higher wages than waiters?

Accepted Answer

A) Marketplace discrimination 
B) Active unionization in the garbage collection field 
C) Higher demand for garbage men than nurses 
D) The nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men 
A) Marketplace discrimination 
B) Active unionization in the garbage collection field 
C) Higher demand for garbage men than nurses 
D) The nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men

Question 7

Most collective bargaining situations lead to strikes.

Accepted Answer

A) True 
 B)False

Question 8

High-wage workers are

Accepted Answer

A) more likely than low-wage workers to supply more labor when the wage rate rises. 
B) about as likely as low-wage workers to supply more labor when the wage rate rises. 
C) less likely than low-wage workers to supply more labor when the wage rate rises. 
D) about as likely as low-wages workers to supply less labor when the wage rate rises. 
A) more likely than low-wage workers to supply more labor when the wage rate rises. 
B) about as likely as low-wage workers to supply more labor when the wage rate rises. 
C) less likely than low-wage workers to supply more labor when the wage rate rises. 
D) about as likely as low-wages workers to supply less labor when the wage rate rises.

Question 9

Unions have the power to

Accepted Answer

A) set all working rules. 
B) increase the firm's total taxes. 
C) push wages above competitive levels at times. 
D) make a firm nationalized. 
A) set all working rules. 
B) increase the firm's total taxes. 
C) push wages above competitive levels at times. 
D) make a firm nationalized.

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following has not occurred in the United States over the last two decades?

Accepted Answer

A) A fall in real wages 
B) An increase in labor-force participation 
C) Growth in service sector employment 
D) A decrease in the wage differentials between colleges grads noncollege grads. 
A) A fall in real wages 
B) An increase in labor-force participation 
C) Growth in service sector employment 
D) A decrease in the wage differentials between colleges grads noncollege grads.

Question 12

Innovation that increases the productivity of capital equipment will increase the demand for labor in the short run but decrease wages in the long run.

Accepted Answer

A) True 
 B)False

Question 13

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 14

According to the process of creative destruction, at first the entrepreneur will be able to sell the product for

Accepted Answer

A) a low price because it is not well known. 
B) a high price because there is no competition. 
C) a fair price because these are contestable markets. 
D) at a price of zero until the market is created. 
A) a low price because it is not well known. 
B) a high price because there is no competition. 
C) a fair price because these are contestable markets. 
D) at a price of zero until the market is created.

Question 15

The employment effect of a minimum wage increase is greater the

Accepted Answer

A) more elastic the demand for labor. 
B) less elastic the demand for labor. 
C) more the wage ceiling shifts the supply curve. 
D) more the wage floor shifts the demand curve. 
A) more elastic the demand for labor. 
B) less elastic the demand for labor. 
C) more the wage ceiling shifts the supply curve. 
D) more the wage floor shifts the demand curve.

Question 16

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?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 17

An investment in yourself is an investment in what economists call human capital.

Accepted Answer

A) True 
 B)False

Question 18

Landlords receive their wages in the form of rents.

Accepted Answer

A) True 
 B)False

Question 19

Union membership was relatively low during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 20

Firms use collective bargaining to set higher market prices for their products.

Accepted Answer

A) True 
 B)False

Exam 19: Labor and Entrepreneurship: the Human Inputs

It is possible to analyze education decisions in a manner similar to the decision to acquire more

The primary reason unionization in the United States has been declining is the shift of the U.S. labor force into service industries and out of manufacturing.

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

Rising labor productivity means that less labor is needed to produce the same level of output.

One effect of having access to cheap foreign goods can be to raise workers' real wages.

What is the most probable reason why garbage men have higher wages than waiters?

Most collective bargaining situations lead to strikes.

High-wage workers are

Unions have the power to

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.

Which of the following has not occurred in the United States over the last two decades?

Innovation that increases the productivity of capital equipment will increase the demand for labor in the short run but decrease wages in the long run.

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

According to the process of creative destruction, at first the entrepreneur will be able to sell the product for

The employment effect of a minimum wage increase is greater the

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?

An investment in yourself is an investment in what economists call human capital.

Landlords receive their wages in the form of rents.

Union membership was relatively low during the Great Depression.

Firms use collective bargaining to set higher market prices for their products.

What Is Economics

The Economy: 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

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

Filters