Question 1

In the short run,those who are hurt by the minimum wage are

Accepted Answer

A) some workers who lose their jobs 
B) employers who have to pay more 
C) consumers who have to pay more for goods 
D) all of these 
A) some workers who lose their jobs 
B) employers who have to pay more 
C) consumers who have to pay more for goods 
D) all of these D

Question 2

The beneficiaries of the minimum wage are confined to those in poverty.

Accepted Answer

A) True 
 B)False  False

Question 3

Technological advances that increase the skill requirements for many jobs will tend to

Accepted Answer

A) make it more challenging for individuals to migrate from low-paying jobs to high-paying jobs 
B) make it easier for individuals to migrate low-paying jobs to high-paying jobs 
C) have no impact on the ease of migrating from low-paying jobs to high-paying jobs 
D) contribute to a more equal distribution of income 
E) have no impact on the distribution of income 
A) make it more challenging for individuals to migrate from low-paying jobs to high-paying jobs 
B) make it easier for individuals to migrate low-paying jobs to high-paying jobs 
C) have no impact on the ease of migrating from low-paying jobs to high-paying jobs 
D) contribute to a more equal distribution of income 
E) have no impact on the distribution of income A

Question 4

Increases in the government-imposed minimum wage tend to increase unemployment among unskilled workers.

Accepted Answer

A) True 
 B)False

Question 5

Jackson is considering two different jobs,and is indifferent to both of them although one pays $20 per hour and the other pays $25 per hour.This must mean that

Accepted Answer

A) the higher-paying job must be more dangerous than the lower-paying job 
B) the higher-paying job enjoys a compensating wage differential of $5 per hour 
C) Jackson doesn't really need the money 
D) the lower-paying job enjoys a compensating wage differential of $5 per hour 
E) the higher-paying job enjoys a compensating wage differential of $20 per hour 
A) the higher-paying job must be more dangerous than the lower-paying job 
B) the higher-paying job enjoys a compensating wage differential of $5 per hour 
C) Jackson doesn't really need the money 
D) the lower-paying job enjoys a compensating wage differential of $5 per hour 
E) the higher-paying job enjoys a compensating wage differential of $20 per hour

Question 6

If prejudice originates with employers,market forces work to reduce discrimination and lower wage differences between the favored and unfavored groups.

Accepted Answer

A) True 
 B)False

Question 7

Consider an economy in which all labor markets are perfectly competitive,all workers are equally able to do any job,and the nonwage attributes of all jobs are equally attractive to all workers.Which of the following would occur in a labor market where the current wage rate exceeds wage rates in alternate markets?

Accepted Answer

A) Labor demand will decrease,and the equilibrium wage rate will fall. 
B) Labor demand will increase,and the equilibrium wage rate will fall. 
C) Labor demand will increase,and the equilibrium wage rate will rise. 
D) Labor supply will decrease,and the equilibrium wage rate will rise. 
E) Labor supply will increase,and the equilibrium wage rate will fall. 
A) Labor demand will decrease,and the equilibrium wage rate will fall. 
B) Labor demand will increase,and the equilibrium wage rate will fall. 
C) Labor demand will increase,and the equilibrium wage rate will rise. 
D) Labor supply will decrease,and the equilibrium wage rate will rise. 
E) Labor supply will increase,and the equilibrium wage rate will fall.

Question 8

The EITC tends to

Accepted Answer

A) increase employment just like the minimum wage does. 
B) decrease employment just like the minimum wage does. 
C) increase employment whereas the minimum wage decreases employment. 
D) decrease employment whereas the minimum wage increase employment. 
A) increase employment just like the minimum wage does. 
B) decrease employment just like the minimum wage does. 
C) increase employment whereas the minimum wage decreases employment. 
D) decrease employment whereas the minimum wage increase employment.

Question 9

In comparing a job that requires a high level of skill to one for a job that requires a low skill level,the high-skill job

Accepted Answer

A) will always command a higher wage than the low-skill job 
B) can command a higher wage only if there is sufficient demand for the output produced by the job 
C) will command a higher wage whenever the nonmonetary characteristics of the two jobs are equivalent 
D) will command a higher wage whenever there is a relatively low supply of labor with the required skill level 
E) will command a higher wage whenever the two labor markets are perfectly competitive 
A) will always command a higher wage than the low-skill job 
B) can command a higher wage only if there is sufficient demand for the output produced by the job 
C) will command a higher wage whenever the nonmonetary characteristics of the two jobs are equivalent 
D) will command a higher wage whenever there is a relatively low supply of labor with the required skill level 
E) will command a higher wage whenever the two labor markets are perfectly competitive

Question 10

The "vicious cycle of discrimination" refers to

Accepted Answer

A) the use of statistical discrimination to perpetuate the impact of employer prejudice on minorities 
B) the portion of the wage differential between two groups that cannot be accounted for by differences in education and job experience 
C) lower wage rates that reduce incentives to improve skill levels and gain job experience,which perpetuates lower wage rates 
D) any job-market discrimination that remains after all premarket discrimination has been eliminated 
E) job-market discrimination that leads to increased prejudices among workers and customers,thus generating more discrimination 
A) the use of statistical discrimination to perpetuate the impact of employer prejudice on minorities 
B) the portion of the wage differential between two groups that cannot be accounted for by differences in education and job experience 
C) lower wage rates that reduce incentives to improve skill levels and gain job experience,which perpetuates lower wage rates 
D) any job-market discrimination that remains after all premarket discrimination has been eliminated 
E) job-market discrimination that leads to increased prejudices among workers and customers,thus generating more discrimination

Question 11

All else constant,the quantity of labor supplied is inversely related to the amount of training required for a job.

Accepted Answer

A) True 
 B)False

Question 12

Consider two perfectly competitive labor markets for jobs that require different skills but are otherwise equivalent.One job currently pays a higher wage than the other job.This wage differential

Accepted Answer

A) cannot persist in the long run 
B) can persist only if there are significant differences in the nonmonetary characteristics of the two jobs 
C) can persist if workers in the lower-wage job lack the ability to gain the skills needed for the higher-wage job 
D) will be eliminated as labor supply to the higher-wage job increases 
E) is likely unrelated to different workers' endowments of talent and intelligence 
A) cannot persist in the long run 
B) can persist only if there are significant differences in the nonmonetary characteristics of the two jobs 
C) can persist if workers in the lower-wage job lack the ability to gain the skills needed for the higher-wage job 
D) will be eliminated as labor supply to the higher-wage job increases 
E) is likely unrelated to different workers' endowments of talent and intelligence

Question 13

Brett is equally qualified for two different jobs -- video store clerk and coffee shop cashier.Brett is initially indifferent between the two jobs but when he finds out that they pay the same wage he prefers the job at the video store.This must mean that

Accepted Answer

A) the coffee shop pays a compensating wage differential. 
B) the video store must be in a dangerous neighborhood. 
C) the video job pays a compensating wage differential. 
D) Brett decides he likes videos more than coffee. 
E) the video job would require him to work harder. 
A) the coffee shop pays a compensating wage differential. 
B) the video store must be in a dangerous neighborhood. 
C) the video job pays a compensating wage differential. 
D) Brett decides he likes videos more than coffee. 
E) the video job would require him to work harder.

Question 14

One reason why individuals with greater ability often receive higher wage rates is that they

Accepted Answer

A) face discrimination 
B) have low marginal products 
C) have high marginal revenue products 
D) face diminishing marginal returns 
E) often are employed in industries experiencing economies of scale 
A) face discrimination 
B) have low marginal products 
C) have high marginal revenue products 
D) face diminishing marginal returns 
E) often are employed in industries experiencing economies of scale

Question 15

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

Accepted Answer

A) government restrictions 
B) cost-of-living differentials 
C) labor unions 
D) discrimination 
E) professional organizations 
A) government restrictions 
B) cost-of-living differentials 
C) labor unions 
D) discrimination 
E) professional organizations

Question 16

If a professional organization imposes strict licensing procedures that increase entry costs for new members,then labor

Accepted Answer

A) supply will fall,and the equilibrium wage rate will rise 
B) supply will fall,and the equilibrium wage rate will fall 
C) supply will rise,and the equilibrium wage rate will fall 
D) demand will rise,and the equilibrium wage rate will rise 
E) demand will rise,labor supply will fall,and the equilibrium wage rate will rise 
A) supply will fall,and the equilibrium wage rate will rise 
B) supply will fall,and the equilibrium wage rate will fall 
C) supply will rise,and the equilibrium wage rate will fall 
D) demand will rise,and the equilibrium wage rate will rise 
E) demand will rise,labor supply will fall,and the equilibrium wage rate will rise

Question 17

Comparing the median income of all white males to the median income of all black males in order to determine the impact of job-market discrimination on earnings tends to

Accepted Answer

A) overestimate the impact because it does not account for differences in education and job experience 
B) underestimate the impact because it does not account for differences in education and job experience 
C) overestimate the impact because it accounts for differences in education and job experience 
D) underestimate the impact because its accounts for differences in education and job experience 
E) correctly estimate the impact 
A) overestimate the impact because it does not account for differences in education and job experience 
B) underestimate the impact because it does not account for differences in education and job experience 
C) overestimate the impact because it accounts for differences in education and job experience 
D) underestimate the impact because its accounts for differences in education and job experience 
E) correctly estimate the impact

Question 18

The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)

Accepted Answer

A) equilibrium wage rate 
B) competitive wage 
C) equalizing wage 
D) compensating wage differential 
E) efficient wage 
A) equilibrium wage rate 
B) competitive wage 
C) equalizing wage 
D) compensating wage differential 
E) efficient wage

Question 19

Advocates of comparable worth favor eliminating all differences in wage rates among employees of the same firm.

Accepted Answer

A) True 
 B)False

Question 20

The supply of labor to a particular job will be greater the

Accepted Answer

A) less the social status that is attached to the job 
B) less training is required to perform that job 
C) lower the fringe benefits are of the job 
D) less flexible the work schedules are in the job 
E) higher degree of personal risk involved in the job 
A) less the social status that is attached to the job 
B) less training is required to perform that job 
C) lower the fringe benefits are of the job 
D) less flexible the work schedules are in the job 
E) higher degree of personal risk involved in the job

In the short run,those who are hurt by the minimum wage are

The beneficiaries of the minimum wage are confined to those in poverty.

Technological advances that increase the skill requirements for many jobs will tend to

Increases in the government-imposed minimum wage tend to increase unemployment among unskilled workers.

Jackson is considering two different jobs,and is indifferent to both of them although one pays $20 per hour and the other pays $25 per hour.This must mean that

If prejudice originates with employers,market forces work to reduce discrimination and lower wage differences between the favored and unfavored groups.

The EITC tends to

In comparing a job that requires a high level of skill to one for a job that requires a low skill level,the high-skill job

The "vicious cycle of discrimination" refers to

All else constant,the quantity of labor supplied is inversely related to the amount of training required for a job.

Consider two perfectly competitive labor markets for jobs that require different skills but are otherwise equivalent.One job currently pays a higher wage than the other job.This wage differential

Brett is equally qualified for two different jobs -- video store clerk and coffee shop cashier.Brett is initially indifferent between the two jobs but when he finds out that they pay the same wage he prefers the job at the video store.This must mean that

One reason why individuals with greater ability often receive higher wage rates is that they

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

If a professional organization imposes strict licensing procedures that increase entry costs for new members,then labor

Comparing the median income of all white males to the median income of all black males in order to determine the impact of job-market discrimination on earnings tends to

The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)

Advocates of comparable worth favor eliminating all differences in wage rates among employees of the same firm.

The supply of labor to a particular job will be greater the

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 13: B: Labor Markets

In the short run,those who are hurt by the minimum wage are

The beneficiaries of the minimum wage are confined to those in poverty.

Technological advances that increase the skill requirements for many jobs will tend to

Increases in the government-imposed minimum wage tend to increase unemployment among unskilled workers.

Jackson is considering two different jobs,and is indifferent to both of them although one pays $20 per hour and the other pays $25 per hour.This must mean that

If prejudice originates with employers,market forces work to reduce discrimination and lower wage differences between the favored and unfavored groups.

The EITC tends to

In comparing a job that requires a high level of skill to one for a job that requires a low skill level,the high-skill job

The "vicious cycle of discrimination" refers to

All else constant,the quantity of labor supplied is inversely related to the amount of training required for a job.

Consider two perfectly competitive labor markets for jobs that require different skills but are otherwise equivalent.One job currently pays a higher wage than the other job.This wage differential

Brett is equally qualified for two different jobs -- video store clerk and coffee shop cashier.Brett is initially indifferent between the two jobs but when he finds out that they pay the same wage he prefers the job at the video store.This must mean that

One reason why individuals with greater ability often receive higher wage rates is that they

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

If a professional organization imposes strict licensing procedures that increase entry costs for new members,then labor

Comparing the median income of all white males to the median income of all black males in order to determine the impact of job-market discrimination on earnings tends to

The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)

Advocates of comparable worth favor eliminating all differences in wage rates among employees of the same firm.

The supply of labor to a particular job will be greater the

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters