Question 1

What percentage of American workers now belong to labor unions?

Accepted Answer

A) less than 20 percent 
B) about 40 percent 
C) about 60 percent 
D) more than 80 percent 
A) less than 20 percent 
B) about 40 percent 
C) about 60 percent 
D) more than 80 percent

Question 2

With a monopsony in the labor market, a union can often raise wages and the number of workers hired.

Accepted Answer

A) True 
 B)False

Question 3

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

Accepted Answer

A) True 
 B)False

Question 4

The branch of economic theory that analyzes decisions about education and training is

Accepted Answer

A) welfare economics. 
B) equilibrium analysis. 
C) human capital theory. 
D) consumption theory. 
A) welfare economics. 
B) equilibrium analysis. 
C) human capital theory. 
D) consumption theory.

Question 5

Doctors demand large salaries in part because

Accepted Answer

A) they are forbidden by U.S.law from receiving economic rent. 
B) most doctors have backward-bending labor supply curves. 
C) they participate in the secondary labor market. 
D) they have made significant investments in human capital. 
A) they are forbidden by U.S.law from receiving economic rent. 
B) most doctors have backward-bending labor supply curves. 
C) they participate in the secondary labor market. 
D) they have made significant investments in human capital.

Question 6

Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income.

Accepted Answer

A) True 
 B)False

Question 7

Explain the relationship between the minimum wage and the unemployment rate for teenagers.

Accepted Answer

Increases in the minimum wage lead to in

Question 8

Under what conditions is it likely that the labor supply curve may become backward bending?
 What roles do the income and substitution effects play?

Accepted Answer

The labor supply curve is based on the w

Question 9

Studies have shown that in the 1980s the wage gap between college-educated workers and those with high school education or less

Accepted Answer

A) decreased dramatically. 
B) decreased slightly. 
C) remained unchanged. 
D) widened dramatically. 
A) decreased dramatically. 
B) decreased slightly. 
C) remained unchanged. 
D) widened dramatically.

Question 10

As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has

Accepted Answer

A) fallen. 
B) stayed roughly constant. 
C) risen. 
D) generally risen, but has fallen during periods of recession. 
A) fallen. 
B) stayed roughly constant. 
C) risen. 
D) generally risen, but has fallen during periods of recession.

Question 11

All of the following are examples of fringe benefits except

Accepted Answer

A) health insurance. 
B) retirement payments. 
C) overtime payments. 
D) education subsidies. 
A) health insurance. 
B) retirement payments. 
C) overtime payments. 
D) education subsidies.

Question 12

Briefly and concisely define the following terms and explain their relevance to the study of economics.
a.industrial and craft unions
b.closed shop
c.union shop
d.bilateral monopoly
e.collective-bargaining agreement

Accepted Answer

a.Industrial unions represent all types

Question 13

Over 50 percent of all U.S.workers now belong to unions.

Accepted Answer

A) True 
 B)False

Question 14

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

Accepted Answer

A) True 
 B)False

Question 15

The Industrial Revolution refers to the stream of new technology and the resulting growth of output than began in England toward the end of the eighteenth century.

Accepted Answer

A) True 
 B)False

Question 16

The monetary return on a college education is considered economic rent.

Accepted Answer

A) True 
 B)False

Question 17

A union acts like a monopoly seller of labor.

Accepted Answer

A) True 
 B)False

Question 18

Research and development refers to the activity of firms, universities, and government agencies that seek to invent new products and processes.

Accepted Answer

A) True 
 B)False

Question 19

It required less labor time to buy a college education in 1995 than it did in 1965.

Accepted Answer

A) True 
 B)False

Question 20

Union members earn about the same wage level as nonunion members in the same industry.

Accepted Answer

A) True 
 B)False

Exam 19: Labor and Entrepreneurship: the Human Inputs

What percentage of American workers now belong to labor unions?

With a monopsony in the labor market, a union can often raise wages and the number of workers hired.

The quantity of labor supplied is dependent on the size of the working population and the wage rate.

The branch of economic theory that analyzes decisions about education and training is

Doctors demand large salaries in part because

Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income.

Explain the relationship between the minimum wage and the unemployment rate for teenagers.

Under what conditions is it likely that the labor supply curve may become backward bending? What roles do the income and substitution effects play?

Studies have shown that in the 1980s the wage gap between college-educated workers and those with high school education or less

As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has

All of the following are examples of fringe benefits except

Briefly and concisely define the following terms and explain their relevance to the study of economics. a.industrial and craft unions b.closed shop c.union shop d.bilateral monopoly e.collective-bargaining agreement

Over 50 percent of all U.S.workers now belong to unions.

Teenage unemployment rates have consistently been much higher than the overall unemployment rate and black teenagers have fared worse than white teenagers.

The Industrial Revolution refers to the stream of new technology and the resulting growth of output than began in England toward the end of the eighteenth century.

The monetary return on a college education is considered economic rent.

A union acts like a monopoly seller of labor.

Research and development refers to the activity of firms, universities, and government agencies that seek to invent new products and processes.

It required less labor time to buy a college education in 1995 than it did in 1965.

Union members earn about the same wage level as nonunion members in the same industry.

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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