Question 1

The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:

Accepted Answer

A)  product. 
B)  revenue product. 
C)  cost. 
D)  none of the above. 
A)  product. 
B)  revenue product. 
C)  cost. 
D)  none of the above.

Question 2

If cats become a more popular pet in the United States than dogs, what can we expect to happen to the market for cat food workers?

Accepted Answer

A)  MP increases. 
B)  MRP increases. 
C)  MP decreases. 
D)  MRP decreases. 
E)  Wage decreases. 
A)  MP increases. 
B)  MRP increases. 
C)  MP decreases. 
D)  MRP decreases. 
E)  Wage decreases.

Question 3

Of the following demographic groups, which has the lowest poverty rate in the U.S.?

Accepted Answer

A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university. 
A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.

Question 4

As the price of a competitive firm's product rises, the firm's demand for labor also rises.

Accepted Answer

A) True 
 B)False

Question 5

When determining whether a family's income is below the official poverty rate, non-cash benefits from the government, such as food stamps (SNAP), housing and medical benefits, are also included.

Accepted Answer

A) True 
 B)False

Question 6

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

Accepted Answer

A) True 
 B)False

Question 7

A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:

Accepted Answer

A)  create unnecessary unemployment. 
B)  shift in labor supply curve leftward. 
C)  decrease the marginal product of labor. 
D)  reduce management's use of featherbedding. 
A)  create unnecessary unemployment. 
B)  shift in labor supply curve leftward. 
C)  decrease the marginal product of labor. 
D)  reduce management's use of featherbedding.

Question 8

The social security tax is called FICA, which stands for:

Accepted Answer

A)  Federal Investment Corporation of America. 
B)  Federal Income Contributions to Americans. 
C)  Funding from Individuals and Corporations in America. 
D)  Federal Insurance Contributions Act. 
A)  Federal Investment Corporation of America. 
B)  Federal Income Contributions to Americans. 
C)  Funding from Individuals and Corporations in America. 
D)  Federal Insurance Contributions Act.

Question 9

A worker's accumulated investment in education, training, experience, and health is called:

Accepted Answer

A)  derived labor demand. 
B)  collective entrepreneurship. 
C)  seniority. 
D)  human capital. 
A)  derived labor demand. 
B)  collective entrepreneurship. 
C)  seniority. 
D)  human capital.

Question 10

If the price of labor falls, we can expect:

Accepted Answer

A)  demand for labor will increase. 
B)  quantity demanded of labor will increase. 
C)  demand for labor will decrease. 
D)  quantity demanded of labor will decrease. 
E)  marginal factor cost to rise in a competitive market. 
A)  demand for labor will increase. 
B)  quantity demanded of labor will increase. 
C)  demand for labor will decrease. 
D)  quantity demanded of labor will decrease. 
E)  marginal factor cost to rise in a competitive market.

Question 11

Which of the following government programs provides recipients with in-kind benefits?

Accepted Answer

A)  Temporary Assistance to Needy Families (TANF). 
B)  Social Security. 
C)  The food stamp program (SNAP). 
D)  Unemployment compensation. 
A)  Temporary Assistance to Needy Families (TANF). 
B)  Social Security. 
C)  The food stamp program (SNAP). 
D)  Unemployment compensation.

Question 12

Some people believe that employees should be paid the same wages when their jobs, although different, require similar levels of education, training, experience, and responsibility. This principle is known as:

Accepted Answer

A)  the equal-pay-for-equal work doctrine. 
B)  Lorenz equivalence. 
C)  marginal productivity theory. 
D)  comparable worth. 
A)  the equal-pay-for-equal work doctrine. 
B)  Lorenz equivalence. 
C)  marginal productivity theory. 
D)  comparable worth.

Question 13

If we compare median family income in the U.S. for families headed by an adult with no more than a high school education to that of families headed by an adult with a bachelor's degree, which of the following best describes what we will find?

Accepted Answer

A)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 70 percent higher than families headed by an adult no more than a high school education. 
B)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 25 percent higher than families headed by an adult no more than a high school education. 
C)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 50 percent higher than families headed by an adult no more than a high school education. 
D)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 90 percent higher than families headed by an adult no more than a high school education.​ 
A)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 70 percent higher than families headed by an adult no more than a high school education. 
B)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 25 percent higher than families headed by an adult no more than a high school education. 
C)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 50 percent higher than families headed by an adult no more than a high school education. 
D)  ​Median family income for families headed by an adult with a bachelor's degree is approximately 90 percent higher than families headed by an adult no more than a high school education.​

Question 14

For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:

Accepted Answer

A)  wage rate. 
B)  price of the firm's product. 
C)  interest rate. 
D)  firm's total revenue. 
A)  wage rate. 
B)  price of the firm's product. 
C)  interest rate. 
D)  firm's total revenue.

Question 15

Which of the following government programs provides recipients with unrestricted cash payments?

Accepted Answer

A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program (SNAP). 
D)  Housing assistance programs. 
A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program (SNAP). 
D)  Housing assistance programs.

Question 16

Medicaid and food stamps are:

Accepted Answer

A)  available only to families. 
B)  counterproductive. 
C)  forms of in-kind assistance. 
D)  forms of cash assistance. 
E)  both c and d. 
A)  available only to families. 
B)  counterproductive. 
C)  forms of in-kind assistance. 
D)  forms of cash assistance. 
E)  both c and d.

Question 17

Which of the following is not an in-kind subsidy?

Accepted Answer

A)  SNAP (food stamps). 
B)  Low-cost rental housing. 
C)  Medicare. 
D)  Medicaid. 
E)  Unemployment compensation. 
A)  SNAP (food stamps). 
B)  Low-cost rental housing. 
C)  Medicare. 
D)  Medicaid. 
E)  Unemployment compensation.

Question 18

For a perfectly competitive firm, marginal revenue product is equal to price minus marginal revenue.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following might increase the supply curve of labor?

Accepted Answer

A)  Elimination of discrimination against blacks. 
B)  Elimination of discrimination against females. 
C)  Easing licensing requirements. 
D)  All of the above. 
A)  Elimination of discrimination against blacks. 
B)  Elimination of discrimination against females. 
C)  Easing licensing requirements. 
D)  All of the above.

Question 20

Comparable worth is the principle that:

Accepted Answer

A)  goods and services priced the same have about the same worth. 
B)  the wage rate equals the value of productivity. 
C)  men and women should be paid comparably. 
D)  employees who perform comparable jobs should be paid the same wage. 
A)  goods and services priced the same have about the same worth. 
B)  the wage rate equals the value of productivity. 
C)  men and women should be paid comparably. 
D)  employees who perform comparable jobs should be paid the same wage.

Exam 10: Labor Markets and Income Distribution

The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:

If cats become a more popular pet in the United States than dogs, what can we expect to happen to the market for cat food workers?

Of the following demographic groups, which has the lowest poverty rate in the U.S.?

As the price of a competitive firm's product rises, the firm's demand for labor also rises.

When determining whether a family's income is below the official poverty rate, non-cash benefits from the government, such as food stamps (SNAP), housing and medical benefits, are also included.

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:

The social security tax is called FICA, which stands for:

A worker's accumulated investment in education, training, experience, and health is called:

If the price of labor falls, we can expect:

Which of the following government programs provides recipients with in-kind benefits?

Some people believe that employees should be paid the same wages when their jobs, although different, require similar levels of education, training, experience, and responsibility. This principle is known as:

If we compare median family income in the U.S. for families headed by an adult with no more than a high school education to that of families headed by an adult with a bachelor's degree, which of the following best describes what we will find?

For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:

Which of the following government programs provides recipients with unrestricted cash payments?

Medicaid and food stamps are:

Which of the following is not an in-kind subsidy?

For a perfectly competitive firm, marginal revenue product is equal to price minus marginal revenue.

Which of the following might increase the supply curve of labor?

Comparable worth is the principle that:

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