Question 1

If marginal product of a restaurant employee is 10 customers per hour, and the price of a meal is $15, the restaurant employee's value of marginal product is

Accepted Answer

A) $15. 
B) $7.5. 
C) $12.5. 
D) $10. 
E) $150. 
A) $15. 
B) $7.5. 
C) $12.5. 
D) $10. 
E) $150.

Question 2

If the supply of labour curve is upward sloping but not vertical, and if the value of marginal product of labour increases,

Accepted Answer

A) the supply of labour increases. 
B) the wage rate rises. 
C) the marginal cost of production increases. 
D) the exploitation of workers decreases. 
E) employment is unchanged. 
A) the supply of labour increases. 
B) the wage rate rises. 
C) the marginal cost of production increases. 
D) the exploitation of workers decreases. 
E) employment is unchanged.

Question 3

The distribution of world income is ________ the distribution of Canadian income.

Accepted Answer

A) more equal than 
B) equal to 
C) not comparable to 
D) equal to the distribution of Canadian wealth and more equal than 
E) less equal than 
A) more equal than 
B) equal to 
C) not comparable to 
D) equal to the distribution of Canadian wealth and more equal than 
E) less equal than

Question 4

The demand curve for labour will shift leftward as a result of

Accepted Answer

A) a decrease in the wage rate. 
B) an increase in the wage rate. 
C) a decrease in the price of a substitute factor of production. 
D) an increase in the price of a substitute factor of production. 
E) an increase in the price of the firm's output. 
A) a decrease in the wage rate. 
B) an increase in the wage rate. 
C) a decrease in the price of a substitute factor of production. 
D) an increase in the price of a substitute factor of production. 
E) an increase in the price of the firm's output.

Question 5

Use the figure below to answer the following questions.
   
Figure 18.3.3
-During the past year, Teddy had a part-time job at which he is willing to work 30 hours each week.During Teddy's annual review, his boss grants him an 8 percent increase in his wage.As a result of the wage increase, Teddy is now willing to work 25 hours each week.Teddy's opportunity cost of ________ has risen and for Teddy the substitution effect of the wage hike is ________ the income effect.

Accepted Answer

A) leisure; less than 
B) leisure; more than 
C) labour; less than 
D) labour; more than 
E) leisure; equal to 
A) leisure; less than 
B) leisure; more than 
C) labour; less than 
D) labour; more than 
E) leisure; equal to

Question 6

Use the figure below to answer the following questions.
   
Figure 19.3.5
-Refer to Figure 19.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

Accepted Answer

A) $5 an hour. 
B) $4 an hour. 
C) $6 an hour. 
D) $8 an hour. 
E) $7 an hour. 
A) $5 an hour. 
B) $4 an hour. 
C) $6 an hour. 
D) $8 an hour. 
E) $7 an hour.

Question 7

Equilibrium occurs in the market for oil when the

Accepted Answer

A) price of the oil equals the interest rate. 
B) increase in the price of oil equals the expected increase in the interest rate. 
C) expected increase in the price of oil over time is equal to the interest rate. 
D) stock of oil is eventually depleted. 
E) price of oil today equals the expected future price. 
A) price of the oil equals the interest rate. 
B) increase in the price of oil equals the expected increase in the interest rate. 
C) expected increase in the price of oil over time is equal to the interest rate. 
D) stock of oil is eventually depleted. 
E) price of oil today equals the expected future price.

Question 8

If the average tax rate decreases as income increases, the income tax is

Accepted Answer

A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive. 
A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive.

Question 9

Use the figure below to answer the following questions.
   
Figure 18.3.1
-Refer to Figure 18.3.1.This figure shows the value of marginal product of labour curve, the labour supply curve, and the marginal cost of labour curve.Suppose the government passes a minimum wage law that prohibits anyone from hiring labour at less than $6.50 per hour.The monopsonist will hire

Accepted Answer

A) 50 hours of labour. 
B) 75 hours of labour. 
C) 62.5 hours of labour. 
D) 100 hours of labour. 
E) 125 hours of labour. 
A) 50 hours of labour. 
B) 75 hours of labour. 
C) 62.5 hours of labour. 
D) 100 hours of labour. 
E) 125 hours of labour.

Question 10

Complete the following sentence.Assortative mating

Accepted Answer

A) tends to break down barriers between the social classes. 
B) tends to increase the equality of the income distribution. 
C) tends to increase the equality of the distribution of wealth. 
D) tends to keep the income and wealth distributions from becoming more equal. 
E) occurs rarely these days due to changes in social values. 
A) tends to break down barriers between the social classes. 
B) tends to increase the equality of the income distribution. 
C) tends to increase the equality of the distribution of wealth. 
D) tends to keep the income and wealth distributions from becoming more equal. 
E) occurs rarely these days due to changes in social values.

Question 11

Use the figure below to answer the following questions.
   
Figure 19.1.3
-In Figure 19.1.3, the second poorest 20 percent of all families receive what share of income?

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) 50 percent 
A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) 50 percent

Question 12

Which diagram is used by economists to illustrate the distribution of income or wealth?

Accepted Answer

A) Lorenz curve 
B) normal bell-shaped distribution 
C) wage differential curve 
D) low-income cut-off curve 
E) marginal revenue product diagram 
A) Lorenz curve 
B) normal bell-shaped distribution 
C) wage differential curve 
D) low-income cut-off curve 
E) marginal revenue product diagram

If marginal product of a restaurant employee is 10 customers per hour, and the price of a meal is $15, the restaurant employee's value of marginal product is

If the supply of labour curve is upward sloping but not vertical, and if the value of marginal product of labour increases,

The distribution of world income is ________ the distribution of Canadian income.

The demand curve for labour will shift leftward as a result of

Use the figure below to answer the following questions. Figure 19.3.5 -Refer to Figure 19.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

Equilibrium occurs in the market for oil when the

If the average tax rate decreases as income increases, the income tax is

Complete the following sentence.Assortative mating

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3, the second poorest 20 percent of all families receive what share of income?

Which diagram is used by economists to illustrate the distribution of income or wealth?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Filters

Exam 18: Markets for Factors of Production

If marginal product of a restaurant employee is 10 customers per hour, and the price of a meal is $15, the restaurant employee's value of marginal product is

If the supply of labour curve is upward sloping but not vertical, and if the value of marginal product of labour increases,

The distribution of world income is ________ the distribution of Canadian income.

The demand curve for labour will shift leftward as a result of

Use the figure below to answer the following questions. Figure 19.3.5 -Refer to Figure 19.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

Equilibrium occurs in the market for oil when the

If the average tax rate decreases as income increases, the income tax is

Complete the following sentence.Assortative mating

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3, the second poorest 20 percent of all families receive what share of income?

Which diagram is used by economists to illustrate the distribution of income or wealth?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Filters