Question 1

After Hurricane Katrina, construction wages in New Orleans rose partly because of the loss of a working population.

Accepted Answer

A) True 
 B)False

Question 2

The price of leisure is the

Accepted Answer

A) wage rate. 
B) interest rate. 
C) discount rate. 
D) rate of return on investment. 
A) wage rate. 
B) interest rate. 
C) discount rate. 
D) rate of return on investment.

Question 3

The labor market is composed of

Accepted Answer

A) a relatively homogeneous supply of labor and downward-sloping demand curve. 
B) a vertical supply curve for labor and relatively elastic market demand. 
C) many submarkets for labor of different types. 
D) more teenagers than any other age group of labor. 
A) a relatively homogeneous supply of labor and downward-sloping demand curve. 
B) a vertical supply curve for labor and relatively elastic market demand. 
C) many submarkets for labor of different types. 
D) more teenagers than any other age group of labor.

Question 4

Figure 20-4
  
-In Figure 20-4, which panel shows the impact of union efforts to have goods produced in Asia excluded from the U.S.market?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 5

Which of the following might be a goal of a union?

Accepted Answer

A) increasing the size of the union 
B) increasing the income while holding the size of the union constant 
C) increasing both the size and income of the union 
D) all of the above 
A) increasing the size of the union 
B) increasing the income while holding the size of the union constant 
C) increasing both the size and income of the union 
D) all of the above

Question 6

When workers purchase more leisure and work less at higher wages, the supply curve

Accepted Answer

A) is vertical. 
B) is horizontal. 
C) is positively sloped. 
D) is backward bending. 
A) is vertical. 
B) is horizontal. 
C) is positively sloped. 
D) is backward bending.

Question 7

Most entrepreneurs are self-employed.

Accepted Answer

A) True 
 B)False

Question 8

What is the most probable reason why garbage men have higher wages than nurses?

Accepted Answer

A) marketplace discrimination 
B) active unionization in the garbage collection field 
C) higher demand for garbage men than nurses 
D) the nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men 
A) marketplace discrimination 
B) active unionization in the garbage collection field 
C) higher demand for garbage men than nurses 
D) the nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men

Question 9

There is strong evidence that entrepreneurs are characteristically:

Accepted Answer

A) ​driven by greed 
B) ​overoptimistic 
C) ​not good business people 
D) ​satisfied with the status quo 
A) ​driven by greed 
B) ​overoptimistic 
C) ​not good business people 
D) ​satisfied with the status quo

Question 10

Rising labor productivity means that less labor is needed to produce the same level of output.

Accepted Answer

A) True 
 B)False

Question 11

Explain the circumstances under which some component of labor income is economic rent.

Accepted Answer

Economic rent is a payment to a factor a

Question 12

An investment in yourself is an investment in what economists call human capital.

Accepted Answer

A) True 
 B)False

Question 13

Since a union represents individuals rather than firms, it cannot be considered a monopoly.

Accepted Answer

A) True 
 B)False

Question 14

The primary reason unionization in the United States has been declining is the shift of the U.S.labor force into service industries and out of manufacturing.

Accepted Answer

A) True 
 B)False

Question 15

Which economist created the theory of creative destruction?

Accepted Answer

A) William Nordhaus 
B) Joseph Schumpeter 
C) Adam Smith 
D) Milton Friedman 
A) William Nordhaus 
B) Joseph Schumpeter 
C) Adam Smith 
D) Milton Friedman

Question 16

The job market for which group always seems to have higher unemployment than the labor force as a whole?
 Why?

Accepted Answer

The job market for teenagers seems to ha

Question 17

In 1972, a very controversial study asserted that income differences among individuals did not depend on genetic differences in reasoning ability, or differences between schools, or family background.Moreover, the effects of level of schooling are much less than previously understood.After controlling for all of these background variables, much of the variation in earnings appeared to be random.From this analysis, one might reach the very controversial conclusion that earnings depended to a very great extent on

Accepted Answer

A) human capital. 
B) ability. 
C) schooling. 
D) luck. 
A) human capital. 
B) ability. 
C) schooling. 
D) luck.

Question 18

Unions have the power to

Accepted Answer

A) set all working rules. 
B) increase the firm's total taxes. 
C) push wages above competitive levels at times. 
D) make a firm nationalized. 
A) set all working rules. 
B) increase the firm's total taxes. 
C) push wages above competitive levels at times. 
D) make a firm nationalized.

Question 19

P = MC is a recipe for financial loss in an innovative firm established by an innovative entrepreneur.Explain.

Accepted Answer

Invention cannot be successful financial

Question 20

Suppose a study showed that as the income of doctors increased, doctors spent more time on the golf course and less in the office.What would such a conclusion say about the relative sizes of substitution and income effects?

Accepted Answer

The supply curve for doctor labor hours

Exam 19: Labor and Entrepreneurship: the Human Inputs

After Hurricane Katrina, construction wages in New Orleans rose partly because of the loss of a working population.

The price of leisure is the

The labor market is composed of

Figure 20-4 -In Figure 20-4, which panel shows the impact of union efforts to have goods produced in Asia excluded from the U.S.market?

Which of the following might be a goal of a union?

When workers purchase more leisure and work less at higher wages, the supply curve

Most entrepreneurs are self-employed.

What is the most probable reason why garbage men have higher wages than nurses?

There is strong evidence that entrepreneurs are characteristically:

Rising labor productivity means that less labor is needed to produce the same level of output.

Explain the circumstances under which some component of labor income is economic rent.

An investment in yourself is an investment in what economists call human capital.

Since a union represents individuals rather than firms, it cannot be considered a monopoly.

The primary reason unionization in the United States has been declining is the shift of the U.S.labor force into service industries and out of manufacturing.

Which economist created the theory of creative destruction?

The job market for which group always seems to have higher unemployment than the labor force as a whole? Why?

Unions have the power to

P = MC is a recipe for financial loss in an innovative firm established by an innovative entrepreneur.Explain.

Suppose a study showed that as the income of doctors increased, doctors spent more time on the golf course and less in the office.What would such a conclusion say about the relative sizes of substitution and income effects?

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

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