Question 1

The demand for labor is a derived demand.

Accepted Answer

A) True 
 B)False

Question 2

Entrepreneurial profits are very low because entrepreneurs are generally overly

Accepted Answer

A) pessimistic and receive psychological rewards for their work. 
B) pessimistic and incur psychological costs from their work. 
C) optimistic and receive psychological rewards for their work. 
D) optimistic and incur psychological costs from their work. 
A) pessimistic and receive psychological rewards for their work. 
B) pessimistic and incur psychological costs from their work. 
C) optimistic and receive psychological rewards for their work. 
D) optimistic and incur psychological costs from their work.

Question 3

Increased productivity of workers in manufacturing has

Accepted Answer

A) increased employment in manufacturing. 
B) increased employment in agriculture. 
C) decreased employment in agriculture. 
D) decreased employment in services. 
E) increased employment in services. 
A) increased employment in manufacturing. 
B) increased employment in agriculture. 
C) decreased employment in agriculture. 
D) decreased employment in services. 
E) increased employment in services.

Question 4

Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) human capital. 
B) ability. 
C) schooling. 
D) luck. 
A) human capital. 
B) ability. 
C) schooling. 
D) luck.

Question 6

What are the alternative views to the human capital theory with respect to the role of education?

Accepted Answer

One alternative dissenting view sees edu

Question 7

Explain how productivity growth has led to labor market realignment in the United States.

Accepted Answer

Productivity has cut jobs drastically in

Question 8

If an individual possesses an ability that others cannot acquire, payment to that individual is

Accepted Answer

A) partly economic rent. 
B) a return called the real wage. 
C) a return from investment in human capital. 
D) comparable to the return to well-trained nurses. 
A) partly economic rent. 
B) a return called the real wage. 
C) a return from investment in human capital. 
D) comparable to the return to well-trained nurses.

Question 9

Describe the profit-maximizing firm's decision about how much to spend on innovation.

Accepted Answer

The profit-maximizing firm will decide h

Question 10

Teenage unemployment rates tend to be a little lower than the overall unemployment rate.

Accepted Answer

A) True 
 B)False

Question 11

Many experts on the nursing shortage insist that, in addition to higher money wages, other ways will have to be found to make the nursing profession more attractive, including, for example, more respect from physicians and administrators, more flexible schedules, and more secure parking lots. These facts illustrate the concept of

Accepted Answer

A) exploitation. 
B) pecuniary principles. 
C) economic rent. 
D) nonmonetary attractiveness. 
A) exploitation. 
B) pecuniary principles. 
C) economic rent. 
D) nonmonetary attractiveness.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Invention cannot be successful financially if price is

Accepted Answer

A) greater than marginal cost because invention is based largely on social costs. 
B) greater than marginal cost because invention is based solely on external costs. 
C) equal to marginal cost because invention is based largely on variable costs. 
D) equal to marginal cost because invention is based largely on fixed costs. 
A) greater than marginal cost because invention is based largely on social costs. 
B) greater than marginal cost because invention is based solely on external costs. 
C) equal to marginal cost because invention is based largely on variable costs. 
D) equal to marginal cost because invention is based largely on fixed costs.

Question 14

In the United States, the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

Accepted Answer

A) True 
 B)False

Question 15

A monopsony is a market situation in which there is only one buyer.

Accepted Answer

A) True 
 B)False

Question 16

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

Accepted Answer

A) True 
 B)False

Question 17

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 18

If wages are above the MRP, a firm should employ more labor.

Accepted Answer

A) True 
 B)False

Question 19

The term "bilateral monopoly" refers to market situations in which

Accepted Answer

A) there are two participants on the selling side. 
B) there are two participants on the buying side. 
C) there is a monopoly on the selling side and a monopsony on the buying side. 
D) a monopoly has evaded antitrust laws. 
A) there are two participants on the selling side. 
B) there are two participants on the buying side. 
C) there is a monopoly on the selling side and a monopsony on the buying side. 
D) a monopoly has evaded antitrust laws.

Question 20

The job market for which group always seems to have higher unemployment than the labor force as a whole? Why?

Accepted Answer

The job market for teenagers seems to ha

The demand for labor is a derived demand.

Entrepreneurial profits are very low because entrepreneurs are generally overly

Increased productivity of workers in manufacturing has

Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience.

What are the alternative views to the human capital theory with respect to the role of education?

Explain how productivity growth has led to labor market realignment in the United States.

If an individual possesses an ability that others cannot acquire, payment to that individual is

Describe the profit-maximizing firm's decision about how much to spend on innovation.

Teenage unemployment rates tend to be a little lower than the overall unemployment rate.

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

Invention cannot be successful financially if price is

In the United States, the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

A monopsony is a market situation in which there is only one buyer.

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

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

If wages are above the MRP, a firm should employ more labor.

The term "bilateral monopoly" refers to market situations in which

The job market for which group always seems to have higher unemployment than the labor force as a whole? Why?

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

Exam 19: Labor and Entrepreneurship: the Human Inputs

The demand for labor is a derived demand.

Entrepreneurial profits are very low because entrepreneurs are generally overly

Increased productivity of workers in manufacturing has

Teenagers generally have high marginal revenue products because they have not completed their educations and have little job experience.

What are the alternative views to the human capital theory with respect to the role of education?

Explain how productivity growth has led to labor market realignment in the United States.

If an individual possesses an ability that others cannot acquire, payment to that individual is

Describe the profit-maximizing firm's decision about how much to spend on innovation.

Teenage unemployment rates tend to be a little lower than the overall unemployment rate.

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

Invention cannot be successful financially if price is

In the United States, the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.

A monopsony is a market situation in which there is only one buyer.

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

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

If wages are above the MRP, a firm should employ more labor.

The term "bilateral monopoly" refers to market situations in which

The job market for which group always seems to have higher unemployment than the labor force as a whole? Why?

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