Question 1

The highest fifth of all families receive approximately ____ of the distribution of annual money income among families.

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  50 percent 
A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  50 percent

Question 2

Make a case for income inequality.

Accepted Answer

First, by rewarding people for their pro

Question 3

Which of the following statements concerning the supply of labor is true ?

Accepted Answer

A)  The wage rate has no effect on the supply of labor. 
B)  The labor supply curve is downward sloping. 
C)  The supply of labor is determined by the prevailing wage rate. 
D)  The typical labor supply curve is upward sloping. 
A)  The wage rate has no effect on the supply of labor. 
B)  The labor supply curve is downward sloping. 
C)  The supply of labor is determined by the prevailing wage rate. 
D)  The typical labor supply curve is upward sloping.

Question 4

Exhibit 10-1  Labor and output data   In Exhibit 10-1, the marginal product of the 4th unit of labor is equal to:

Accepted Answer

A)  80. 
B)  45. 
C)  35. 
D)  100. 
E)  20. 
A)  80. 
B)  45. 
C)  35. 
D)  100. 
E)  20.

Question 5

The U.S. has one of the highest unionization rates of all the industrialized countries around the world.

Accepted Answer

A) True 
 B)False

Question 6

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

Accepted Answer

A)  women would be overqualified for "non-dangerous" jobs. 
B)  labor supply in female-intensive occupations would increase. 
C)  women would be less likely to obtain college degrees. 
D)  comparable worth would no longer exist between men's and women's occupations. 
A)  women would be overqualified for "non-dangerous" jobs. 
B)  labor supply in female-intensive occupations would increase. 
C)  women would be less likely to obtain college degrees. 
D)  comparable worth would no longer exist between men's and women's occupations.

Question 7

Exhibit 10-7  Income distribution for three countries   Exhibit 10-7 shows the percentage of income received by each population quintile. In Country II we can conclude that the:

Accepted Answer

A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 35 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income. 
A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 35 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income.

Question 8

Exhibit 10-2  Labor supply curve   In Exhibit 10-2, the wage for the 6th employee is equal to:

Accepted Answer

A)  $18. 
B)  $36. 
C)  $3. 
D)  $108. 
E)  unable to determine with this information. 
A)  $18. 
B)  $36. 
C)  $3. 
D)  $108. 
E)  unable to determine with this information.

Question 9

An improvement in technology that increases the marginal product will shift the demand for labor curve to the right.

Accepted Answer

A) True 
 B)False

Question 10

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Accepted Answer

A) True 
 B)False

Question 11

Featherbedding allows unions to increase wages by:

Accepted Answer

A)  limiting the supply of labor. 
B)  increasing firms' demand for labor. 
C)  forcing firms to accept higher-than-equilibrium wages. 
D)  reducing labor share of payroll taxes. 
A)  limiting the supply of labor. 
B)  increasing firms' demand for labor. 
C)  forcing firms to accept higher-than-equilibrium wages. 
D)  reducing labor share of payroll taxes.

Question 12

If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome? ​

Accepted Answer

A)  ​The supply of labor will increase. 
B)  ​The demand for labor will increase. 
C)  ​The supply of labor will decrease. 
D)  ​The demand for labor will decrease. 
A)  ​The supply of labor will increase. 
B)  ​The demand for labor will increase. 
C)  ​The supply of labor will decrease. 
D)  ​The demand for labor will decrease.

Question 13

If the demand for the finished product increases, the:

Accepted Answer

A)  demand for the resources will increase. 
B)  demand for the resources will decrease. 
C)  marginal factor cost will increase. 
D)  marginal factor cost will decrease. 
E)  MP will increase. 
A)  demand for the resources will increase. 
B)  demand for the resources will decrease. 
C)  marginal factor cost will increase. 
D)  marginal factor cost will decrease. 
E)  MP will increase.

Question 14

The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:

Accepted Answer

A)  d and e. 
B)  the price of Coca-Cola increases. 
C)  the firms innovate with new technology that raises labor productivity. 
D)  the price of Pepsi decreases. 
E)  Coca-Cola workers become unionized. 
A)  d and e. 
B)  the price of Coca-Cola increases. 
C)  the firms innovate with new technology that raises labor productivity. 
D)  the price of Pepsi decreases. 
E)  Coca-Cola workers become unionized.

Question 15

The geographic region in the United States with the highest poverty rate is the South.

Accepted Answer

A) True 
 B)False

Question 16

An increase in the demand for a product will shift the demand for labor used to produce the product:

Accepted Answer

A)  downward. 
B)  leftward. 
C)  rightward. 
D)  none of the above, the curve will not shift. 
A)  downward. 
B)  leftward. 
C)  rightward. 
D)  none of the above, the curve will not shift.

Question 17

An increase in demand for French fries will cause equilibrium wage rates:

Accepted Answer

A)  and quantities of potato workers hired to rise. 
B)  and quantities of potato workers hired to fall 
C)  to rise and quantities of potato workers hired to fall. 
D)  to fall and quantities of potato workers hired to rise 
E)  and quantities of potato workers hired to stay the same 
A)  and quantities of potato workers hired to rise. 
B)  and quantities of potato workers hired to fall 
C)  to rise and quantities of potato workers hired to fall. 
D)  to fall and quantities of potato workers hired to rise 
E)  and quantities of potato workers hired to stay the same

Question 18

What is the official definition of the poverty line? What are some causes of poverty?

Accepted Answer

The official definition of the poverty l

Question 19

Assume consumer demand for CD-ROMs increases. The result is a(n):

Accepted Answer

A)  increase in derived demand for workers in the CD-ROM industry. 
B)  increase in the marginal revenue product of firms in the CD-ROM industry. 
C)  rightward shift in the market demand for labor curve in the CD-ROM industry. 
D)  all of the above. 
E)  none of the above. 
A)  increase in derived demand for workers in the CD-ROM industry. 
B)  increase in the marginal revenue product of firms in the CD-ROM industry. 
C)  rightward shift in the market demand for labor curve in the CD-ROM industry. 
D)  all of the above. 
E)  none of the above.

Question 20

Tucker Corporation sells its products for $5.00. Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is:

Accepted Answer

A)  $5.00 or less per hour. 
B)  $1.00 or more per hour. 
C)  $25.00 or less per hour. 
D)  none of the above. 
A)  $5.00 or less per hour. 
B)  $1.00 or more per hour. 
C)  $25.00 or less per hour. 
D)  none of the above.

Exam 10: Labor Markets and Income Distribution

The highest fifth of all families receive approximately ____ of the distribution of annual money income among families.

Make a case for income inequality.

Which of the following statements concerning the supply of labor is true ?

Exhibit 10-1 Labor and output data In Exhibit 10-1, the marginal product of the 4th unit of labor is equal to:

The U.S. has one of the highest unionization rates of all the industrialized countries around the world.

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

Exhibit 10-7 Income distribution for three countries Exhibit 10-7 shows the percentage of income received by each population quintile. In Country II we can conclude that the:

Exhibit 10-2 Labor supply curve In Exhibit 10-2, the wage for the 6th employee is equal to:

An improvement in technology that increases the marginal product will shift the demand for labor curve to the right.

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Featherbedding allows unions to increase wages by:

If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome? ​

If the demand for the finished product increases, the:

The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:

The geographic region in the United States with the highest poverty rate is the South.

An increase in the demand for a product will shift the demand for labor used to produce the product:

An increase in demand for French fries will cause equilibrium wage rates:

What is the official definition of the poverty line? What are some causes of poverty?

Assume consumer demand for CD-ROMs increases. The result is a(n):

Tucker Corporation sells its products for $5.00. Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome?