Question 1

The relationship between professional basketball players and the owners' association is an example of a bilateral monopoly.

Accepted Answer

A) True 
 B)False

Question 2

Minimum wage legislation

Accepted Answer

A) has little effect on university professors. 
B) raises incomes of unskilled laborers who have jobs. 
C) prevents some willing workers from getting jobs. 
D) All of the above are true. 
A) has little effect on university professors. 
B) raises incomes of unskilled laborers who have jobs. 
C) prevents some willing workers from getting jobs. 
D) All of the above are true.

Question 3

The demand for labor is derived from the

Accepted Answer

A) demand for leisure. 
B) supply of labor. 
C) demand for final-output goods. 
D) supply of final-output goods. 
A) demand for leisure. 
B) supply of labor. 
C) demand for final-output goods. 
D) supply of final-output goods.

Question 4

A firm's demand curve for labor shifts when the

Accepted Answer

A) price of its output changes. 
B) wage rate changes. 
C) number of available workers changes. 
D) All of the above are correct. 
A) price of its output changes. 
B) wage rate changes. 
C) number of available workers changes. 
D) All of the above are correct.

Question 5

Give some explanations for the decline in union membership in the United States.

Accepted Answer

One reason unionization in the United St

Question 6

The substitution effect of a wage increase

Accepted Answer

A) probably leads most workers to want to work more. 
B) certainly leads all workers to want to work more. 
C) probably leads most workers to want to work less. 
D) certainly leads most firms to want to employ more workers. 
A) probably leads most workers to want to work more. 
B) certainly leads all workers to want to work more. 
C) probably leads most workers to want to work less. 
D) certainly leads most firms to want to employ more workers.

Question 7

Figure 20-1
  
-Which of the diagrams in Figure 20-1 shows the situation of an individual firm that hires labor in a perfectly competitive market?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 8

One of the reasons for the growth performance of free market economies is firms' use of innovation to compete with one another.

Accepted Answer

A) True 
 B)False

Question 9

If an individual possesses an ability that others cannot acquire, payment to that individual is

Accepted Answer

A) partly economic rent. 
B) a return called the real wage. 
C) a return from investment in human capital. 
D) comparable to the return to well-trained nurses. 
A) partly economic rent. 
B) a return called the real wage. 
C) a return from investment in human capital. 
D) comparable to the return to well-trained nurses.

Question 10

The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law.The exam system thus allows the ABA to act like a

Accepted Answer

A) monopsony. 
B) union that can restrict the supply of lawyers. 
C) union that can increase the number of lawyers. 
D) None of the above is correct. 
A) monopsony. 
B) union that can restrict the supply of lawyers. 
C) union that can increase the number of lawyers. 
D) None of the above is correct.

Question 11

The consensus among researchers is that union workers earn 15 percent more than otherwise identical nonunion workers.This means unions have probably raised wages

Accepted Answer

A) exactly 15 percent. 
B) less than 15 percent. 
C) at least 15 percent. 
D) more or less than 15 percent, but one cannot tell exactly. 
A) exactly 15 percent. 
B) less than 15 percent. 
C) at least 15 percent. 
D) more or less than 15 percent, but one cannot tell exactly.

Question 12

When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles

Accepted Answer

A) perfect competition. 
B) a dual labor market. 
C) monopolistic competition. 
D) bilateral monopoly. 
A) perfect competition. 
B) a dual labor market. 
C) monopolistic competition. 
D) bilateral monopoly.

Question 13

Currently, college graduates are earning about ____ more than high school grads over the course of their careers.

Accepted Answer

A) $100,000 
B) $1,000,000 
C) 25% 
D) 60% 
A) $100,000 
B) $1,000,000 
C) 25% 
D) 60%

Question 14

Describe the profit-maximizing firm's decision about how much to spend on innovation.

Accepted Answer

The profit-maximizing firm will decide h

Question 15

The income effect is thought to offset the substitution effect among very high wage earners.

Accepted Answer

A) True 
 B)False

Question 16

The United States suffers more from strikes than Japan but fewer strikes than Canada.

Accepted Answer

A) True 
 B)False

Question 17

In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output.

Accepted Answer

A) True 
 B)False

Question 18

Governmental rules that significantly promoted entrepreneurship first became prominent during the

Accepted Answer

A) Great Recession. 
B) Age of Enlightenment. 
C) Great Depression. 
D) Industrial Revolution. 
A) Great Recession. 
B) Age of Enlightenment. 
C) Great Depression. 
D) Industrial Revolution.

Question 19

The demand for education is determined by the

Accepted Answer

A) demand for human capital. 
B) demand for nonhuman capital. 
C) supply of human capital. 
D) supply of nonhuman capital. 
A) demand for human capital. 
B) demand for nonhuman capital. 
C) supply of human capital. 
D) supply of nonhuman capital.

Question 20

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.

Accepted Answer

A) decrease; decrease 
B) decrease; increase 
C) increase; decrease 
D) increase; increase 
A) decrease; decrease 
B) decrease; increase 
C) increase; decrease 
D) increase; increase

Exam 19: Labor and Entrepreneurship: the Human Inputs

The relationship between professional basketball players and the owners' association is an example of a bilateral monopoly.

Minimum wage legislation

The demand for labor is derived from the

A firm's demand curve for labor shifts when the

Give some explanations for the decline in union membership in the United States.

The substitution effect of a wage increase

Figure 20-1 -Which of the diagrams in Figure 20-1 shows the situation of an individual firm that hires labor in a perfectly competitive market?

One of the reasons for the growth performance of free market economies is firms' use of innovation to compete with one another.

If an individual possesses an ability that others cannot acquire, payment to that individual is

The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law.The exam system thus allows the ABA to act like a

The consensus among researchers is that union workers earn 15 percent more than otherwise identical nonunion workers.This means unions have probably raised wages

When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles

Currently, college graduates are earning about ____ more than high school grads over the course of their careers.

Describe the profit-maximizing firm's decision about how much to spend on innovation.

The income effect is thought to offset the substitution effect among very high wage earners.

The United States suffers more from strikes than Japan but fewer strikes than Canada.

In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output.

Governmental rules that significantly promoted entrepreneurship first became prominent during the

The demand for education is determined by the

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Filters

The supply curve of truck drivers is upward sloping and demand curve is downward sloping.A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will the equilibrium wage of truck drivers and the number of drivers employed.