Question 1

Explain why wage rates might rise a Joe's Quik-Print Shop if Joe replace his aging copy machines with state-of-the-art copy machines.

Accepted Answer

The improvement in technology will boost

Question 2

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 3

Suppose a change in technology increases the marginal product of labor. The result is a(n):

Accepted Answer

A)  downward movement along the demand for labor curve. 
B)  rightward shift in the demand for labor curve. 
C)  leftward shift in the demand for labor curve. 
D)  upward movement along the demand for labor curve. 
A)  downward movement along the demand for labor curve. 
B)  rightward shift in the demand for labor curve. 
C)  leftward shift in the demand for labor curve. 
D)  upward movement along the demand for labor curve.

Question 4

The marginal revenue product curve is:

Accepted Answer

A)  c and d are correct. 
B)  c and e are correct. 
C)  given by the marginal product curve multiplied by the price of the good. 
D)  the marginal contribution of an additional worker to firm's revenues. 
E)  the change in total cost that results from employing an additional worker. 
A)  c and d are correct. 
B)  c and e are correct. 
C)  given by the marginal product curve multiplied by the price of the good. 
D)  the marginal contribution of an additional worker to firm's revenues. 
E)  the change in total cost that results from employing an additional worker.

Question 5

A decrease in the price of the output will decrease the firm's demand for labor.

Accepted Answer

A) True 
 B)False

Question 6

A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is:

Accepted Answer

A)  derived demand. 
B)  marginal demand. 
C)  secondary demand. 
D)  monopsonistic demand. 
A)  derived demand. 
B)  marginal demand. 
C)  secondary demand. 
D)  monopsonistic demand.

Question 7

According to the statistics, the distribution of money income:

Accepted Answer

A)  fluctuated widely since 1947. 
B)  changed significantly in favor of the bottom 5 percent. 
C)  has not changed greatly since 1947. 
D)  has not changed greatly since 1929. 
A)  fluctuated widely since 1947. 
B)  changed significantly in favor of the bottom 5 percent. 
C)  has not changed greatly since 1947. 
D)  has not changed greatly since 1929.

Question 8

One reason the supply of carpenters is greater than the supply of physicians is because:

Accepted Answer

A)  physicians do not belong to a union. 
B)  carpenters demand less income. 
C)  carpenters belong to unions. 
D)  none of the above. 
A)  physicians do not belong to a union. 
B)  carpenters demand less income. 
C)  carpenters belong to unions. 
D)  none of the above.

Question 9

A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as:

Accepted Answer

A)  featherbedding. 
B)  human capital formation. 
C)  monopsonistic bargaining. 
D)  artificial demand stimulus. 
A)  featherbedding. 
B)  human capital formation. 
C)  monopsonistic bargaining. 
D)  artificial demand stimulus.

Question 10

If product price decreases, then:

Accepted Answer

A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease. 
A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease.

Question 11

Which of the following will decrease the demand for fast-food burger workers' labor?

Accepted Answer

A)  More people start working two jobs and eat more fast food. 
B)  The price of pizza, a substitute for burgers, decreases. 
C)  A new technology allows burgers to be produced faster. 
D)  Workers get additional training that increases productivity. 
E)  Workers form a union and get higher wages. 
A)  More people start working two jobs and eat more fast food. 
B)  The price of pizza, a substitute for burgers, decreases. 
C)  A new technology allows burgers to be produced faster. 
D)  Workers get additional training that increases productivity. 
E)  Workers form a union and get higher wages.

Question 12

Since World War II, the percentage of U.S. workers who are unionized has declined from about 86 percent to its current level of 60 percent.

Accepted Answer

A) True 
 B)False

Question 13

The firm's demand for labor curve is exactly the same as the:

Accepted Answer

A)  wage rate. 
B)  price of the output. 
C)  MRP curve. 
D)  MP curve. 
E)  labor supply curve. 
A)  wage rate. 
B)  price of the output. 
C)  MRP curve. 
D)  MP curve. 
E)  labor supply curve.

Question 14

Marginal revenue product is defined as the extra:

Accepted Answer

A)  output a firm would receive after hiring one more unit of resource. 
B)  cost of hiring one more unit of resource 
C)  revenue earned by selling one more unit of product. 
D)  revenue earned by hiring one more unit of resource 
E)  output received by spending one more dollar on resources 
A)  output a firm would receive after hiring one more unit of resource. 
B)  cost of hiring one more unit of resource 
C)  revenue earned by selling one more unit of product. 
D)  revenue earned by hiring one more unit of resource 
E)  output received by spending one more dollar on resources

Question 15

Exhibit 10-3  Supply and demand curves for food servers   In Exhibit 10-3, the equilibrium wage and the number of food servers employed per day, respectively, are:

Accepted Answer

A)  $2.00 and 5 thousand. 
B)  $4.00 and 10 thousand. 
C)  $6.00 and 15 thousand 
D)  $8.00 and 20 thousand. 
A)  $2.00 and 5 thousand. 
B)  $4.00 and 10 thousand. 
C)  $6.00 and 15 thousand 
D)  $8.00 and 20 thousand.

Question 16

Which of the following determines equilibrium wages in perfectly competitive labor markets?

Accepted Answer

A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage. 
A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage.

Question 17

The number of workers hired by a firm at a particular wage rate can be calculated if you know which of the following?

Accepted Answer

A)  c and d. 
B)  Product supply curve. 
C)  Marginal product of labor. 
D)  Marginal factor cost. 
E)  Marginal revenue product of labor. 
A)  c and d. 
B)  Product supply curve. 
C)  Marginal product of labor. 
D)  Marginal factor cost. 
E)  Marginal revenue product of labor.

Question 18

Which of the following determines equilibrium wages in perfectly competitive labor markets?

Accepted Answer

A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage. 
A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage.

Question 19

Describe the factors that could cause an increase in the wage rate of workers.

Accepted Answer

Anything that increases the demand or re

Question 20

What happens to the marginal product (MP) of labor when the market price of the good produced increases?

Accepted Answer

A)  Increases proportional to price. 
B)  Decreases proportional to price. 
C)  Stays the same. 
D)  Falls because quantity demanded falls. 
E)  Rises because quantity demanded falls. 
A)  Increases proportional to price. 
B)  Decreases proportional to price. 
C)  Stays the same. 
D)  Falls because quantity demanded falls. 
E)  Rises because quantity demanded falls.

Exam 10: Labor Markets and Income Distribution

Explain why wage rates might rise a Joe's Quik-Print Shop if Joe replace his aging copy machines with state-of-the-art copy machines.

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

Suppose a change in technology increases the marginal product of labor. The result is a(n):

The marginal revenue product curve is:

A decrease in the price of the output will decrease the firm's demand for labor.

A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is:

According to the statistics, the distribution of money income:

One reason the supply of carpenters is greater than the supply of physicians is because:

A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as:

If product price decreases, then:

Which of the following will decrease the demand for fast-food burger workers' labor?

Since World War II, the percentage of U.S. workers who are unionized has declined from about 86 percent to its current level of 60 percent.

The firm's demand for labor curve is exactly the same as the:

Marginal revenue product is defined as the extra:

Exhibit 10-3 Supply and demand curves for food servers In Exhibit 10-3, the equilibrium wage and the number of food servers employed per day, respectively, are:

Which of the following determines equilibrium wages in perfectly competitive labor markets?

The number of workers hired by a firm at a particular wage rate can be calculated if you know which of the following?

Which of the following determines equilibrium wages in perfectly competitive labor markets?

Describe the factors that could cause an increase in the wage rate of workers.

What happens to the marginal product (MP) of labor when the market price of the good produced increases?

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