Question 1

There is only a small difference in wages between college graduates and workers who did not attend college.

Accepted Answer

A) True 
 B)False

Question 2

The United States has had a long history of work time lost due to worker strikes.This trend has

Accepted Answer

A) increased over time. 
B) decreased over time. 
C) stayed relatively constant during the past century. 
D) been less of a problem compared to other countries such as Japan. 
A) increased over time. 
B) decreased over time. 
C) stayed relatively constant during the past century. 
D) been less of a problem compared to other countries such as Japan.

Question 3

Explain the concept of 'creative destruction' by innovation.Does it ensure positive economic profits in the long run?

Accepted Answer

Creative destruction begins when the ale

Question 4

What type of cost is not relevant to the process of research and development or invention in general?

Accepted Answer

A) fixed cost 
B) marginal cost 
C) variable cost 
D) social cost 
A) fixed cost 
B) marginal cost 
C) variable cost 
D) social cost

Question 5

Which of the following makes invention and entrepreneurship more likely in today's economy?

Accepted Answer

A) increasing morality of inventors 
B) government rules within society 
C) positive marginal costs 
D) positive marginal revenues 
A) increasing morality of inventors 
B) government rules within society 
C) positive marginal costs 
D) positive marginal revenues

Question 6

Wages in American industry are very high because of wage laws.

Accepted Answer

A) True 
 B)False

Question 7

Statistical studies in the United States have reached the conclusion that for low-income workers

Accepted Answer

A) the substitution effect is greater than the income effect. 
B) the income effect is greater than the substitution effect. 
C) the income effect is about equal to the substitution effect. 
D) the substitution effect is of the "wrong" sign. 
A) the substitution effect is greater than the income effect. 
B) the income effect is greater than the substitution effect. 
C) the income effect is about equal to the substitution effect. 
D) the substitution effect is of the "wrong" sign.

Question 8

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

Accepted Answer

A) True 
 B)False

Question 9

Regarding new inventions, which of the following statements is not true?

Accepted Answer

A) ​a new invention typically has little competition 
B) ​this effective monopoly on the market earns the inventor abundant profit 
C) ​that profit gets the attention of other potential inventors, who create competing products 
D) ​reduced to zero economic profits, the inventor goes out of business 
A) ​a new invention typically has little competition 
B) ​this effective monopoly on the market earns the inventor abundant profit 
C) ​that profit gets the attention of other potential inventors, who create competing products 
D) ​reduced to zero economic profits, the inventor goes out of business

Question 10

The initial stage of the procedure in which a union and an employer negotiate over a contract is known as

Accepted Answer

A) featherbedding. 
B) collective bargaining. 
C) mediation. 
D) arbitration. 
A) featherbedding. 
B) collective bargaining. 
C) mediation. 
D) arbitration.

Question 11

The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call economic rent.

Accepted Answer

A) True 
 B)False

Question 12

Expenditures for attending college can be viewed as an investment in human capital.

Accepted Answer

A) True 
 B)False

Question 13

Explain what is meant when it is said that the demand for labor is a derived demand.

Accepted Answer

The demand for labor is derived from the

Question 14

Which of the following affects the marginal physical product of labor?

Accepted Answer

A) a worker's abilities and degree of work effort 
B) the amount of capital available per worker 
C) the technical know-how of the management of the firm 
D) all of the above 
A) a worker's abilities and degree of work effort 
B) the amount of capital available per worker 
C) the technical know-how of the management of the firm 
D) all of the above

Question 15

An effective craft union acts as a monopoly

Accepted Answer

A) demander of labor. 
B) seller of labor. 
C) demander of capital. 
D) seller of capital. 
A) demander of labor. 
B) seller of labor. 
C) demander of capital. 
D) seller of capital.

Question 16

Figure 20-2
  
-At existing wage rates, hospitals face a shortage of registered nurses.Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs.Which panel in Figure 20-2, where the broken line indicates the existing wage rate, illustrates this case?

Accepted Answer

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

Question 17

Explain the three growth-creating properties of innovation.

Accepted Answer

1.Innovation can create cumulative chang

Question 18

Recent data and analysis confirms that minimum wage laws have significantly increased teenage unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Average real wages have not risen significantly since approximately 1973.

Accepted Answer

A) True 
 B)False

Question 20

Since women earn less on average than men, we would expect that the substitution effect of a wage change would be more likely to dominate for women and the income effect would be more likely to dominate for men.

Accepted Answer

A) True 
 B)False

Exam 19: Labor and Entrepreneurship: the Human Inputs

There is only a small difference in wages between college graduates and workers who did not attend college.

The United States has had a long history of work time lost due to worker strikes.This trend has

Explain the concept of 'creative destruction' by innovation.Does it ensure positive economic profits in the long run?

What type of cost is not relevant to the process of research and development or invention in general?

Which of the following makes invention and entrepreneurship more likely in today's economy?

Wages in American industry are very high because of wage laws.

Statistical studies in the United States have reached the conclusion that for low-income workers

The proliferation of new products that we are used to today has been occurring since the advent of the Industrial Revolution.

Regarding new inventions, which of the following statements is not true?

The initial stage of the procedure in which a union and an employer negotiate over a contract is known as

The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call economic rent.

Expenditures for attending college can be viewed as an investment in human capital.

Explain what is meant when it is said that the demand for labor is a derived demand.

Which of the following affects the marginal physical product of labor?

An effective craft union acts as a monopoly

Explain the three growth-creating properties of innovation.

Recent data and analysis confirms that minimum wage laws have significantly increased teenage unemployment.

Average real wages have not risen significantly since approximately 1973.

Since women earn less on average than men, we would expect that the substitution effect of a wage change would be more likely to dominate for women and the income effect would be more likely to dominate for men.

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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