Question 1

If a worker costs $75 per day and adds 1,500 units to output,the firm should employ that worker when the price of the product is at or above ________ per unit.

Accepted Answer

A)  $.01 
B)  $.02 
C)  $.03 
D)  $.04 
E)  $.05 
A)  $.01 
B)  $.02 
C)  $.03 
D)  $.04 
E)  $.05

Question 2

This table shows the labor supply as a function of wages and the values of marginal product as a function of the number of laborers
 
-If the actual wage is $5,there will be

Accepted Answer

A)  downward pressure on the wage because of the excess supply of labor. 
B)  no tendency toward change because $5 is the equilibrium wage. 
C)  upward pressure on the wage because the labor supply function is horizontal. 
D)  upward pressure on the wage because of the excess demand for labor. 
E)  a reduction in the supply of labor. 
A)  downward pressure on the wage because of the excess supply of labor. 
B)  no tendency toward change because $5 is the equilibrium wage. 
C)  upward pressure on the wage because the labor supply function is horizontal. 
D)  upward pressure on the wage because of the excess demand for labor. 
E)  a reduction in the supply of labor.

Question 3

The first major piece of pro-labor legislation in the 1930s that made it more difficult for courts to issue injunctions against striking or picketing was the ________ Act.

Accepted Answer

A)  Wagner 
B)  Taft-Hartley 
C)  Norris-La Guardia 
D)  Landrum-Griffin 
E)  Magna Carta 
A)  Wagner 
B)  Taft-Hartley 
C)  Norris-La Guardia 
D)  Landrum-Griffin 
E)  Magna Carta

Question 4

An input with a price-inelastic demand for its services

Accepted Answer

A)  has few close substitutes. 
B)  has a backward-bending supply curve. 
C)  produces a product for which the demand is perfectly elastic. 
D)  has a high market price. 
E)  has a value of the marginal product curve that is horizontal. 
A)  has few close substitutes. 
B)  has a backward-bending supply curve. 
C)  produces a product for which the demand is perfectly elastic. 
D)  has a high market price. 
E)  has a value of the marginal product curve that is horizontal.

Question 5

Blue-collar workers make up approximately ________ percent of the labor force in the United States.

Accepted Answer

A)  5 
B)  15 
C)  33 
D)  50 
E)  80 
A)  5 
B)  15 
C)  33 
D)  50 
E)  80

Question 6

Of those listed below,the main factor contributing to the downfall of the New York Herald Tribune was

Accepted Answer

A)  poor management. 
B)  the fear of new technology among union representatives. 
C)  an unwillingness by the newspaper to install new technology. 
D)  an unwillingness of Tribune representatives to compromise. 
E)  competition from the Times, News, and Post. 
A)  poor management. 
B)  the fear of new technology among union representatives. 
C)  an unwillingness by the newspaper to install new technology. 
D)  an unwillingness of Tribune representatives to compromise. 
E)  competition from the Times, News, and Post.

Question 7

To raise wages,labor unions can force a shift in the labor supply curve by

Accepted Answer

A)  being willing to work longer hours as wage rates rise. 
B)  favoring legislation to reduce immigration. 
C)  negotiating an increase in wages. 
D)  encouraging an increase in union membership. 
E)  increasing the demand for the final product. 
A)  being willing to work longer hours as wage rates rise. 
B)  favoring legislation to reduce immigration. 
C)  negotiating an increase in wages. 
D)  encouraging an increase in union membership. 
E)  increasing the demand for the final product.

Question 8

Which of the following is the best example of derived demand?

Accepted Answer

A)  Advertising creates a demand for a new product. 
B)  Increased oil prices reduce the demand for large automobiles. 
C)  An increase in wages causes firms to substitute capital for labor. 
D)  A decrease in the demand for grapes reduces the demand for grape pickers. 
E)  The market demand schedule is derived by summing all individual demand curves. 
A)  Advertising creates a demand for a new product. 
B)  Increased oil prices reduce the demand for large automobiles. 
C)  An increase in wages causes firms to substitute capital for labor. 
D)  A decrease in the demand for grapes reduces the demand for grape pickers. 
E)  The market demand schedule is derived by summing all individual demand curves.

Question 9

The market supply curve of labor

Accepted Answer

A)  shifts outward when output expands in the market. 
B)  relates the price of labor to the total amount of labor supplied in the market. 
C)  increases with product price. 
D)  is perfectly elastic under perfect competition. 
E) generally slopes downward to the right. 
A)  shifts outward when output expands in the market. 
B)  relates the price of labor to the total amount of labor supplied in the market. 
C)  increases with product price. 
D)  is perfectly elastic under perfect competition. 
E) generally slopes downward to the right.

Question 10

The basic difference between the market supply curve of an input and the supply curve of an input to a single perfectly competitive firm is that

Accepted Answer

A)  demand by a single firm can influence the input supply curve, but market demand cannot influence market supply. 
B)  a single competitive firm always faces a backward-bending input supply curve, whereas the market supply curve infrequently bends backward. 
C)  the input supply curve for a single firm is perfectly elastic, a condition rarely, if ever, observed in a market supply curve. 
D)  the input supply curve for a perfectly competitive firm rises more rapidly than the market supply curve. 
E)  There is no difference; the two supply curves are identical. 
A)  demand by a single firm can influence the input supply curve, but market demand cannot influence market supply. 
B)  a single competitive firm always faces a backward-bending input supply curve, whereas the market supply curve infrequently bends backward. 
C)  the input supply curve for a single firm is perfectly elastic, a condition rarely, if ever, observed in a market supply curve. 
D)  the input supply curve for a perfectly competitive firm rises more rapidly than the market supply curve. 
E)  There is no difference; the two supply curves are identical.

Question 11

In the early 1900s,managers generally refused to grant wage increases to garment workers because

Accepted Answer

A)  they were already paying all that their firms could afford and still remain solvent. 
B)  they could get all the workers they wanted at the wages they were paying. 
C)  most workers were unskilled and covered by the minimum wage law. 
D)  workers were compensated in other ways, such as with free housing and medical care. 
E)  garment workers were already among the highest-paid skilled labor. 
A)  they were already paying all that their firms could afford and still remain solvent. 
B)  they could get all the workers they wanted at the wages they were paying. 
C)  most workers were unskilled and covered by the minimum wage law. 
D)  workers were compensated in other ways, such as with free housing and medical care. 
E)  garment workers were already among the highest-paid skilled labor.

Question 12

The phenomenon of the backward-bending market supply curve for labor

Accepted Answer

A)  indicates the declining quality of labor as unemployment decreases. 
B)  reflects the policy of labor unions. 
C)  results from falling worker productivity as income increases. 
D)  results from workers' increased preference for work as wage rates rise. 
E)  indicates a worker's desire to buy more leisure as income rises. 
A)  indicates the declining quality of labor as unemployment decreases. 
B)  reflects the policy of labor unions. 
C)  results from falling worker productivity as income increases. 
D)  results from workers' increased preference for work as wage rates rise. 
E)  indicates a worker's desire to buy more leisure as income rises.

Question 13

The following question are based on the following information for a firm under conditions of perfect competition:
  
-If the price of the product is $5 per unit and the firm must pay $40 per worker employed,how many workers should the firm hire to maximize profits?

Accepted Answer

A)  10 
B)  11 
C)  12 
D)  13 
E)  14 
A)  10 
B)  11 
C)  12 
D)  13 
E)  14

Exam 10: The Supply and Demand for Labor

If a worker costs $75 per day and adds 1,500 units to output,the firm should employ that worker when the price of the product is at or above ________ per unit.

This table shows the labor supply as a function of wages and the values of marginal product as a function of the number of laborers -If the actual wage is $5,there will be

The first major piece of pro-labor legislation in the 1930s that made it more difficult for courts to issue injunctions against striking or picketing was the ________ Act.

An input with a price-inelastic demand for its services

Blue-collar workers make up approximately ________ percent of the labor force in the United States.

Of those listed below,the main factor contributing to the downfall of the New York Herald Tribune was

To raise wages,labor unions can force a shift in the labor supply curve by

Which of the following is the best example of derived demand?

The market supply curve of labor

The basic difference between the market supply curve of an input and the supply curve of an input to a single perfectly competitive firm is that

In the early 1900s,managers generally refused to grant wage increases to garment workers because

The phenomenon of the backward-bending market supply curve for labor

The following question are based on the following information for a firm under conditions of perfect competition: -If the price of the product is $5 per unit and the firm must pay $40 per worker employed,how many workers should the firm hire to maximize profits?

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters