Exam 10: Labor Markets and Income Distribution

Alan Jones owns a company that sells life insurance. When he employs 10 salespersons his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000. The marginal revenue product of the 11th salesperson is:

Which of the following statements is true ?

Currently, union membership in the United States is about:

The distribution of income has become more equal since 1929.

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

If unions develop increasingly difficult, expensive, and time-consuming requirements to qualify for membership, which of the following is most likely to occur?

Starting in 1964, the U.S. government has defined the poverty line as income at or below ____ the amount of money needed to buy a minimum diet for all family members.

Exhibit 10-5  A perfectly competitive labor market In Exhibit 10-5, when the marginal revenue product is $20.00, the firms should ____ workers.

Explain how the presence of a superstar basketball player can increase the marginal revenue product of the other players on the team.

If the wage rate is fixed at a certain level, the:

As a percentage of nonfarm workers, union membership in the United States grew most rapidly since 1945.

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

Starting in 1964, the U.S. government has defined the poverty line as income at or below ____ the amount of money needed to buy a minimum diet for all family members.

A union can influence the equilibrium wage rate by:

In recent years, the poorest 20 percent of the U.S. population received approximately 15 percent of the total income.

Almost all of the FICA tax deductions from a worker's paycheck is put into an account and saved for that worker's retirement years.

Which of the following statements is true ?

Marginal revenue product of labor measures the extra revenue generated to the firm from the employment of an additional worker.

If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the:

Statistics on families below the poverty line may be overstated because: