Question 1

Over 50 percent of all U.S. workers now belong to unions.

Accepted Answer

A) True 
 B)False

Question 2

A bilateral monopoly is a market situation in which there is only one buyer and only one seller.

Accepted Answer

A) True 
 B)False

Question 3

Explain what is meant when it is said that the demand for labor is a derived demand.

Accepted Answer

The demand for labor is derived from the

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Why has the free-market system produced the most rapid rates of growth of any economic system?

Accepted Answer

The features of competitive markets put

Question 6

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

Accepted Answer

A) True 
 B)False

Question 7

Money spent on college tuition is considered human capital by economists.

Accepted Answer

A) True 
 B)False

Question 8

The branch of economic theory that analyzes decisions about education and training is

Accepted Answer

A) welfare economics. 
B) equilibrium analysis. 
C) human capital theory. 
D) consumption theory. 
A) welfare economics. 
B) equilibrium analysis. 
C) human capital theory. 
D) consumption theory.

Question 9

The demand for labor is a derived demand. Employers hire workers until the

Accepted Answer

A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero. 
A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero.

Question 10

One of the reasons for the growth performance of free-market economies is firms' use of innovation to compete with one another.

Accepted Answer

A) True 
 B)False

Question 11

The more specialized and highly valued a worker's skills are,

Accepted Answer

A) the lower is the worker's stock of human capital. 
B) the more likely the worker is to earn economic rent. 
C) the less likely the worker is to sell the skills on the primary labor market. 
D) the more likely the worker is to be directly affected by minimum wage legislation. 
A) the lower is the worker's stock of human capital. 
B) the more likely the worker is to earn economic rent. 
C) the less likely the worker is to sell the skills on the primary labor market. 
D) the more likely the worker is to be directly affected by minimum wage legislation.

Question 12

A firm will tend to follow competitors when they increase spending on R&D but will not follow them when they decrease such spending.

Accepted Answer

A) True 
 B)False

Question 13

Now, about ____ percent of American married-couple families have two or more wage earners.

Accepted Answer

A) 35 
B) 50 
C) 60 
D) 90 
A) 35 
B) 50 
C) 60 
D) 90

Question 14

Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner. Explain how collective bargaining would be used in wage negotiations and the role of player strikes.

Accepted Answer

Collective bargaining asks the player an

Question 15

The substitution effect is thought to dominate the behavior of low-wage workers.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

Although a new invention initially impli

Question 17

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 18

Which of the following was not invented centuries ago in China?

Accepted Answer

A) Gunpowder 
B) The wheelbarrow 
C) Printing with movable type 
D) Winding clocks 
A) Gunpowder 
B) The wheelbarrow 
C) Printing with movable type 
D) Winding clocks

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would cause a firm's demand curve for labor to shift?

Accepted Answer

A) The price of a firm's output changes. 
B) The wage rate changes. 
C) The number of available workers changes. 
D) The wages paid by rival firms change. 
A) The price of a firm's output changes. 
B) The wage rate changes. 
C) The number of available workers changes. 
D) The wages paid by rival firms change.

Exam 19: Labor and Entrepreneurship: the Human Inputs

Over 50 percent of all U.S. workers now belong to unions.

A bilateral monopoly is a market situation in which there is only one buyer and only one seller.

Explain what is meant when it is said that the demand for labor is a derived demand.

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

Why has the free-market system produced the most rapid rates of growth of any economic system?

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

Money spent on college tuition is considered human capital by economists.

The branch of economic theory that analyzes decisions about education and training is

The demand for labor is a derived demand. Employers hire workers until the

One of the reasons for the growth performance of free-market economies is firms' use of innovation to compete with one another.

The more specialized and highly valued a worker's skills are,

A firm will tend to follow competitors when they increase spending on R&D but will not follow them when they decrease such spending.

Now, about ____ percent of American married-couple families have two or more wage earners.

Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner. Explain how collective bargaining would be used in wage negotiations and the role of player strikes.

The substitution effect is thought to dominate the behavior of low-wage workers.

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

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.

Which of the following was not invented centuries ago in China?

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

Which of the following would cause a firm's demand curve for labor to shift?

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

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