Question 1

One of the most significant developments in labor supply in recent times is the increase in the labor force participation of married women.

Accepted Answer

A) True 
 B)False

Question 2

Explain how productivity growth has led to labor market realignment in the United States.

Accepted Answer

Productivity has cut jobs drastically in

Question 3

What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?

Accepted Answer

A) creative destruction 
B) innovation 
C) the substitution effect 
D) backward-bending innovation 
A) creative destruction 
B) innovation 
C) the substitution effect 
D) backward-bending innovation

Question 4

The following table shows the total physical product of labor.Compute the marginal physical product of labor and the marginal revenue product of labor at output prices of $10 per unit and $12 per unit.If labor costs $105 per unit, how much should the firm hire at each price of output?

Accepted Answer

If labor costs $105 per unit,

Question 5

Those who view education as a sorting mechanism emphasize that employers value

Accepted Answer

A) the skills that people who attend college have already acquired before they enter college. 
B) the docility and deference to authority learned in the classroom. 
C) the analytic ability of the highly educated worker. 
D) the work habits picked up in the home and school. 
A) the skills that people who attend college have already acquired before they enter college. 
B) the docility and deference to authority learned in the classroom. 
C) the analytic ability of the highly educated worker. 
D) the work habits picked up in the home and school.

Question 6

Theoretically, the price of a field hand on the New Orleans slave market would have

Accepted Answer

A) varied directly with the price of cotton. 
B) risen as interest rates fell. 
C) risen when the importation of slaves became illegal. 
D) All of the above are true. 
A) varied directly with the price of cotton. 
B) risen as interest rates fell. 
C) risen when the importation of slaves became illegal. 
D) All of the above are true.

Question 7

During the twentieth century, the real income of the average American grew by a factor of more than seven.

Accepted Answer

A) True 
 B)False

Question 8

Now, about ____ percent of American married-couple families have two or more wage earners.

Accepted Answer

A) 35 
B) 50 
C) 60 
D) 90 
A) 35 
B) 50 
C) 60 
D) 90

Question 9

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

Accepted Answer

A) True 
 B)False

Question 10

More goods are available to the average American today than two hundred years ago, but today an American has to work more hours to earn the money to purchase most items.

Accepted Answer

A) True 
 B)False

Question 11

An individual's supply curve is backward bending.

Accepted Answer

A) True 
 B)False

Question 12

A minimum wage law might increase wages without reducing employment if the hiring firm is

Accepted Answer

A) in perfect competition. 
B) a monopolist. 
C) a monopolistic competitor. 
D) a monopsonist. 
A) in perfect competition. 
B) a monopolist. 
C) a monopolistic competitor. 
D) a monopsonist.

Question 13

Average hours worked per week have ____ since the early 1900s.

Accepted Answer

A) declined by almost 7 percent 
B) risen by almost 15 percent 
C) risen by almost 7 percent 
D) declined by almost 35 percent 
A) declined by almost 7 percent 
B) risen by almost 15 percent 
C) risen by almost 7 percent 
D) declined by almost 35 percent

Question 14

The steam engine was first invented by

Accepted Answer

A) Heron of Alexandria 
B) James Wyatt 
C) Robert Fulton 
D) Denis Papin 
A) Heron of Alexandria 
B) James Wyatt 
C) Robert Fulton 
D) Denis Papin

Question 15

Unions became much less effective in the 1990s because of

Accepted Answer

A) greater competition in domestic markets. 
B) increased foreign competition. 
C) downsizing by American firms. 
D) All of the above are correct. 
A) greater competition in domestic markets. 
B) increased foreign competition. 
C) downsizing by American firms. 
D) All of the above are correct.

Question 16

Figure 20-3
  
-Figure 20-3 shows a worker's backward-bending supply curve of labor.Which of the following statements is correct?

Accepted Answer

A) The substitution effect of a change in the wage dominates the income effect at all points on the curve. 
B) The income effect of a change in the wage dominates the substitution effect at all points on the curve. 
C) Above W*, the substitution effect of a change in the wage dominates the income effect; below W*, the income effect dominates the substitution effect. 
D) Above W*, the income effect of a change in the wage dominates the substitution effect; below W*, the substitution effect dominates the income effect. 
A) The substitution effect of a change in the wage dominates the income effect at all points on the curve. 
B) The income effect of a change in the wage dominates the substitution effect at all points on the curve. 
C) Above W*, the substitution effect of a change in the wage dominates the income effect; below W*, the income effect dominates the substitution effect. 
D) Above W*, the income effect of a change in the wage dominates the substitution effect; below W*, the substitution effect dominates the income effect.

Question 17

A college education is a(n)

Accepted Answer

A) investment in human capital. 
B) form of innovation. 
C) public good. 
D) mediated settlement. 
A) investment in human capital. 
B) form of innovation. 
C) public good. 
D) mediated settlement.

Question 18

The United Automobile Workers union can select the most favorable point on the demand curve for labor and the auto manufacturing companies can do nothing in response.

Accepted Answer

A) True 
 B)False

Question 19

A monopsony is a market situation in which there is only one seller.

Accepted Answer

A) True 
 B)False

Question 20

Most innovations in the economy come from

Accepted Answer

A) many different industries in a few countries. 
B) a few industries in many different countries. 
C) many different industries in many different countries. 
D) a few industries in a few countries. 
E) a few industries in the United States. 
A) many different industries in a few countries. 
B) a few industries in many different countries. 
C) many different industries in many different countries. 
D) a few industries in a few countries. 
E) a few industries in the United States.

Exam 19: Labor and Entrepreneurship: the Human Inputs

One of the most significant developments in labor supply in recent times is the increase in the labor force participation of married women.

Explain how productivity growth has led to labor market realignment in the United States.

What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?

The following table shows the total physical product of labor.Compute the marginal physical product of labor and the marginal revenue product of labor at output prices of $10 per unit and $12 per unit.If labor costs $105 per unit, how much should the firm hire at each price of output?

Those who view education as a sorting mechanism emphasize that employers value

Theoretically, the price of a field hand on the New Orleans slave market would have

During the twentieth century, the real income of the average American grew by a factor of more than seven.

Now, about ____ percent of American married-couple families have two or more wage earners.

When unions and management fail to reach agreement and the public interest is compromised, the government may require the union and management to undertake mediation.

More goods are available to the average American today than two hundred years ago, but today an American has to work more hours to earn the money to purchase most items.

An individual's supply curve is backward bending.

A minimum wage law might increase wages without reducing employment if the hiring firm is

Average hours worked per week have ____ since the early 1900s.

The steam engine was first invented by

Unions became much less effective in the 1990s because of

Figure 20-3 -Figure 20-3 shows a worker's backward-bending supply curve of labor.Which of the following statements is correct?

A college education is a(n)

The United Automobile Workers union can select the most favorable point on the demand curve for labor and the auto manufacturing companies can do nothing in response.

A monopsony is a market situation in which there is only one seller.

Most innovations in the economy come from

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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