Question 1

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

Accepted Answer

A)  Increasing licensing requirements. 
B)  Increasing discrimination against females. 
C)  Increasing discrimination against blacks. 
D)  All of the above. 
E)  None of the above. 
A)  Increasing licensing requirements. 
B)  Increasing discrimination against females. 
C)  Increasing discrimination against blacks. 
D)  All of the above. 
E)  None of the above.

Question 2

The poorest 20 percent of the U.S. population received approximately ____ of total income?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent 
A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent

Question 3

If the market price of bicycle frames is $500, and frame welders earn a wage of $50, how many welders will be hired?

Accepted Answer

A)  10. 
B)  More than 10. 
C)  Fewer than 10. 
D)  Hiring will stop when the MP is 10. 
E)  Hiring will stop when the MP is 0.1. 
A)  10. 
B)  More than 10. 
C)  Fewer than 10. 
D)  Hiring will stop when the MP is 10. 
E)  Hiring will stop when the MP is 0.1.

Question 4

Exhibit 10-1  Labor and output data   In Exhibit 10-1, if product price is fixed at $8, the MRP of the 5th worker is equal to:

Accepted Answer

A)  $50. 
B)  $80. 
C)  $10. 
D)  $100 
E)  $160. 
A)  $50. 
B)  $80. 
C)  $10. 
D)  $100 
E)  $160.

Question 5

Which of the following would cause the demand for labor to change?

Accepted Answer

A)  c and e. 
B)  A change in the cost of living. 
C)  Changes in the wage rate. 
D)  Movements along the labor demand curve. 
E)  A change in the price of the good produced. 
A)  c and e. 
B)  A change in the cost of living. 
C)  Changes in the wage rate. 
D)  Movements along the labor demand curve. 
E)  A change in the price of the good produced.

Question 6

Wage discrimination means minority workers are paid unequal wages.

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following examples is a cash assistance program used to fight poverty in the United States?

Accepted Answer

A)  Medicaid. 
B)  SNAP (food stamps). 
C)  Home energy assistance. 
D)  Head Start. 
E)  Temporary Assistance to Needy Families (TANF). 
A)  Medicaid. 
B)  SNAP (food stamps). 
C)  Home energy assistance. 
D)  Head Start. 
E)  Temporary Assistance to Needy Families (TANF).

Question 8

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

Accepted Answer

A)  The supply of labor is determined by the prevailing wage rate. 
B)  The labor supply curve is downward sloping. 
C)  The wage rate has no effect on the supply of labor. 
D)  None of the above. 
A)  The supply of labor is determined by the prevailing wage rate. 
B)  The labor supply curve is downward sloping. 
C)  The wage rate has no effect on the supply of labor. 
D)  None of the above.

Question 9

The government defines poverty as an income level less than four times the cost of a minimal diet.

Accepted Answer

A) True 
 B)False

Question 10

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product is below the wage rate.

Accepted Answer

A) True 
 B)False

Question 11

A union can influence the demand for labor by:

Accepted Answer

A)  requiring union fees. 
B)  raising union fees. 
C)  effective advertising that convinces customers to buy the "union label." 
D)  all of the above. 
A)  requiring union fees. 
B)  raising union fees. 
C)  effective advertising that convinces customers to buy the "union label." 
D)  all of the above.

Question 12

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is:

Accepted Answer

A)  $10.00. 
B)  $500. 
C)  $5,000. 
D)  $1,010. 
A)  $10.00. 
B)  $500. 
C)  $5,000. 
D)  $1,010.

Question 13

The optimal hiring rule is to employ labor up to the point where:

Accepted Answer

A)  wage = MFC. 
B)  wage = MP. 
C)  wage = MR 
D)  wage = MRP 
E)  wage = TWC. 
A)  wage = MFC. 
B)  wage = MP. 
C)  wage = MR 
D)  wage = MRP 
E)  wage = TWC.

Question 14

An increase in the demand for a product will shift the demand curve for labor producing the product to the left.

Accepted Answer

A) True 
 B)False

Question 15

Since 1929, the distribution of income in the United States has become:

Accepted Answer

A)  substantially more equal. 
B)  slightly more equal. 
C)  slightly more unequal. 
D)  substantially more unequal. 
A)  substantially more equal. 
B)  slightly more equal. 
C)  slightly more unequal. 
D)  substantially more unequal.

Question 16

When a firm hires an additional unit of labor, the increase in a firm's total revenues is known as the marginal:

Accepted Answer

A)  cost. 
B)  product. 
C)  utility product. 
D)  revenue product. 
A)  cost. 
B)  product. 
C)  utility product. 
D)  revenue product.

Question 17

The marginal revenue product of labor is:

Accepted Answer

A)  how much labor can be purchased with the revenue from the sale of one more unit of the good. 
B)  how much does the marginal revenue change when you add more labor. 
C)  the same as the marginal revenue product of capital in equilibrium. 
D)  determined by the wage rate. 
E)  the contribution to total revenue made by the marginal laborer. 
A)  how much labor can be purchased with the revenue from the sale of one more unit of the good. 
B)  how much does the marginal revenue change when you add more labor. 
C)  the same as the marginal revenue product of capital in equilibrium. 
D)  determined by the wage rate. 
E)  the contribution to total revenue made by the marginal laborer.

Question 18

The poverty line:

Accepted Answer

A)  separates those on welfare from those not on welfare. 
B)  equals three times an economy food budget. 
C)  equals the median income level. 
D)  all of the above. 
A)  separates those on welfare from those not on welfare. 
B)  equals three times an economy food budget. 
C)  equals the median income level. 
D)  all of the above.

Question 19

Which of the following can shift the labor demand curve to the right?

Accepted Answer

A)  Decrease in product price. 
B)  Increase in wages. 
C)  Decrease in wages. 
D)  Decrease in the MP. 
E)  Increase in productivity. 
A)  Decrease in product price. 
B)  Increase in wages. 
C)  Decrease in wages. 
D)  Decrease in the MP. 
E)  Increase in productivity.

Question 20

A decrease in the marginal product of labor would be represented by:

Accepted Answer

A)  increase in labor demand. 
B)  decrease in labor demand. 
C)  increase in the quantity demanded of labor. 
D)  decrease in the quantity demanded of labor. 
E)  an increase in wages. 
A)  increase in labor demand. 
B)  decrease in labor demand. 
C)  increase in the quantity demanded of labor. 
D)  decrease in the quantity demanded of labor. 
E)  an increase in wages.

Exam 10: Labor Markets and Income Distribution

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

The poorest 20 percent of the U.S. population received approximately ____ of total income?

If the market price of bicycle frames is $500, and frame welders earn a wage of $50, how many welders will be hired?

Exhibit 10-1 Labor and output data In Exhibit 10-1, if product price is fixed at $8, the MRP of the 5th worker is equal to:

Which of the following would cause the demand for labor to change?

Wage discrimination means minority workers are paid unequal wages.

Which one of the following examples is a cash assistance program used to fight poverty in the United States?

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

The government defines poverty as an income level less than four times the cost of a minimal diet.

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product is below the wage rate.

A union can influence the demand for labor by:

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is:

The optimal hiring rule is to employ labor up to the point where:

An increase in the demand for a product will shift the demand curve for labor producing the product to the left.

Since 1929, the distribution of income in the United States has become:

When a firm hires an additional unit of labor, the increase in a firm's total revenues is known as the marginal:

The marginal revenue product of labor is:

The poverty line:

Which of the following can shift the labor demand curve to the right?

A decrease in the marginal product of labor would be represented by:

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