Question 1

Unions try to raise the demand for their labour by

Accepted Answer

A) raising wages. 
B) encouraging imports. 
C) supporting less restrictive immigration laws. 
D) sponsoring training for union members. 
E) lobbying against minimum wage laws. 
A) raising wages. 
B) encouraging imports. 
C) supporting less restrictive immigration laws. 
D) sponsoring training for union members. 
E) lobbying against minimum wage laws.

Question 2

Use the figure below to answer the following questions.
   
Figure 19.1.3
-In Figure 19.1.3, the middle 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 3

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.If a union and the monopsonist in Figure 18.3.1 are equally strong, the outcome will be an hourly wage

Accepted Answer

A) of $7. 
B) between $5 and $6. 
C) between $5 and $7. 
D) between $6 and $7. 
E) of $6 
A) of $7. 
B) between $5 and $6. 
C) between $5 and $7. 
D) between $6 and $7. 
E) of $6

Question 4

Complete the following sentence.Passing on wealth from one generation to another

Accepted Answer

A) can decrease the inequality of wealth. 
B) will decrease the inequality of income. 
C) is limited since the government taxes this at a very high marginal tax rate. 
D) is one of the main causes of social unrest. 
E) will make the distribution of wealth more closely match the distribution of human capital. 
A) can decrease the inequality of wealth. 
B) will decrease the inequality of income. 
C) is limited since the government taxes this at a very high marginal tax rate. 
D) is one of the main causes of social unrest. 
E) will make the distribution of wealth more closely match the distribution of human capital.

Question 5

An example of a nonrenewable natural resource is

Accepted Answer

A) oil. 
B) Lake Erie. 
C) rain. 
D) sunshine. 
E) the St. Lawrence River. 
A) oil. 
B) Lake Erie. 
C) rain. 
D) sunshine. 
E) the St. Lawrence River.

Question 6

The present value of a future payment of money will be higher the

Accepted Answer

A) higher the interest rate or the further in the future the payment. 
B) lower the interest rate or the further in the future the payment. 
C) higher the interest rate or the nearer the date of the future payment. 
D) lower the interest rate or the nearer the date of the future payment. 
E) lower the interest rate, independent of the date of the future payment. 
A) higher the interest rate or the further in the future the payment. 
B) lower the interest rate or the further in the future the payment. 
C) higher the interest rate or the nearer the date of the future payment. 
D) lower the interest rate or the nearer the date of the future payment. 
E) lower the interest rate, independent of the date of the future payment.

Question 7

In 2011, the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

Accepted Answer

A) 14 percent 
B) 2 percent 
C) 71 percent 
D) 44.2 percent 
E) 55.8 percent 
A) 14 percent 
B) 2 percent 
C) 71 percent 
D) 44.2 percent 
E) 55.8 percent

Question 8

In 2011, the median household income in Canada was

Accepted Answer

A) $5,000. 
B) $25,000. 
C) $50,700. 
D) $59,700. 
E) $63,000. 
A) $5,000. 
B) $25,000. 
C) $50,700. 
D) $59,700. 
E) $63,000.

Question 9

Which one of the following is not a reason why the wages of high-skilled workers exceed the wages of low-skilled workers?

Accepted Answer

A) The market for high-skilled workers is more competitive than the market for low-skilled labour. 
B) The value of marginal product of high-skilled workers is greater than that of low-skilled workers. 
C) The cost of obtaining the human capital required for high-skilled workers is greater than the cost of obtaining the human capital required for low-skilled workers. 
D) High-skilled workers have acquired more human capital than low-skilled workers. 
E) The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers. 
A) The market for high-skilled workers is more competitive than the market for low-skilled labour. 
B) The value of marginal product of high-skilled workers is greater than that of low-skilled workers. 
C) The cost of obtaining the human capital required for high-skilled workers is greater than the cost of obtaining the human capital required for low-skilled workers. 
D) High-skilled workers have acquired more human capital than low-skilled workers. 
E) The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers.

Question 10

Use the information below to answer the following questions.
Fact 19.4.1 Income Gap Growing
In 2009, people in the highest quintile had 24.6 times as much market income as those in the lowest quintile, but after taxes and transfers the people in the highest quintile had 9.1 times as much income as those in the lowest quintile. In 1989, the people in the highest quintile had 7.2 times more income after taxes and transfers than those in the lowest quintile. In 1990, 82.9 percent of the unemployed received unemployment benefits. In 2009, 47.8 percent of the unemployed received unemployment benefits.
Source: Conference Board of Canada, July 13, 2011
-Refer to Fact 19.4.1.This news clip implies that

Accepted Answer

A) in 2009, the highest quintile gave 15.5 percent of its income to the lowest quintile. 
B) Canada should increase income redistribution. 
C) income redistribution in 2009 leads to more income equality than in 1989. 
D) income redistribution in 2009 leads to less income equality than in 1989. 
E) income redistribution in 2009 leads to the same income equality in 1989. 
A) in 2009, the highest quintile gave 15.5 percent of its income to the lowest quintile. 
B) Canada should increase income redistribution. 
C) income redistribution in 2009 leads to more income equality than in 1989. 
D) income redistribution in 2009 leads to less income equality than in 1989. 
E) income redistribution in 2009 leads to the same income equality in 1989.

Question 11

To increase the demand for union labour, unions do all of the following except

Accepted Answer

A) support increases in the minimum wage. 
B) support increases in import restrictions. 
C) encourage people to buy goods made by unionized workers. 
D) support an increase in the supply of foreign workers. 
E) support training schemes and apprenticeship programs. 
A) support increases in the minimum wage. 
B) support increases in import restrictions. 
C) encourage people to buy goods made by unionized workers. 
D) support an increase in the supply of foreign workers. 
E) support training schemes and apprenticeship programs.

Question 12

Which of the following three statements is true? Human capital

Accepted Answer

A) decreases your value of marginal product. 
B) lowers your wages. 
C) may reduce your income while you are accumulating it. 
D) All of the above statements are true. 
E) None of the above three statements is true. 
A) decreases your value of marginal product. 
B) lowers your wages. 
C) may reduce your income while you are accumulating it. 
D) All of the above statements are true. 
E) None of the above three statements is true.

Question 13

If the market for a nonrenewable natural resource is currently in equilibrium, the price of the resource

Accepted Answer

A) is equal to the value of marginal product of the resource. 
B) is expected to rise at a rate equal to the interest rate. 
C) is expected to fall at a rate equal to the interest rate. 
D) will actually rise at a rate equal to the interest rate. 
E) will actually fall at a rate equal to the interest rate. 
A) is equal to the value of marginal product of the resource. 
B) is expected to rise at a rate equal to the interest rate. 
C) is expected to fall at a rate equal to the interest rate. 
D) will actually rise at a rate equal to the interest rate. 
E) will actually fall at a rate equal to the interest rate.

Question 14

If the price of the firm's output decreases, the value of marginal product curve

Accepted Answer

A) remains unchanged. 
B) becomes more elastic. 
C) becomes more inelastic. 
D) shifts leftward. 
E) shifts rightward. 
A) remains unchanged. 
B) becomes more elastic. 
C) becomes more inelastic. 
D) shifts leftward. 
E) shifts rightward.

Question 15

Income maintenance programs include all of the following programs except

Accepted Answer

A) social security programs. 
B) workers' compensation. 
C) Canada Pension Plan. 
D) employment insurance. 
E) the minimum wage. 
A) social security programs. 
B) workers' compensation. 
C) Canada Pension Plan. 
D) employment insurance. 
E) the minimum wage.

Question 16

To maximize profit, a firm hires labour until

Accepted Answer

A) there is no more labour available at the market wage rate. 
B) they can sell that labour for no more than what they paid for it. 
C) the wage rate paid to the labour equals the marginal cost of production. 
D) the additional benefit from hiring the labour is equal to the additional revenue the labour generates. 
E) the value of marginal product equals the wage rate. 
A) there is no more labour available at the market wage rate. 
B) they can sell that labour for no more than what they paid for it. 
C) the wage rate paid to the labour equals the marginal cost of production. 
D) the additional benefit from hiring the labour is equal to the additional revenue the labour generates. 
E) the value of marginal product equals the wage rate.

Question 17

A profit-maximizing firm will continue to hire labour until the

Accepted Answer

A) wage rate equals the last worker's marginal product. 
B) last worker's value of marginal product is maximized. 
C) last worker's value of marginal product is negative. 
D) wage rate equals the last worker's value of marginal product. 
E) last worker's value of marginal product equals zero. 
A) wage rate equals the last worker's marginal product. 
B) last worker's value of marginal product is maximized. 
C) last worker's value of marginal product is negative. 
D) wage rate equals the last worker's value of marginal product. 
E) last worker's value of marginal product equals zero.

Question 18

Use the figure below to answer the following questions.
   
Figure 19.1.3
-The curve in Figure 19.1.3 is the

Accepted Answer

A) line of fairness. 
B) line of equality. 
C) learning curve. 
D) wage differential curve. 
E) Lorenz curve. 
A) line of fairness. 
B) line of equality. 
C) learning curve. 
D) wage differential curve. 
E) Lorenz curve.

Question 19

Table 19.4.2
  
-Refer to Table 19.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Accepted Answer

A) Plan B 
B) Plan C 
C) Plan A 
D) Plan A and Plan C 
E) Plan B and Plan C 
A) Plan B 
B) Plan C 
C) Plan A 
D) Plan A and Plan C 
E) Plan B and Plan C

Question 20

Use the figure below to answer the following questions.
   
Figure 19.3.2
-Refer to Figure 19.3.2.For the employer to hire 40 hours per week of both high-skilled and low-skilled labour,

Accepted Answer

A) high-skilled workers would have to earn a wage rate that is twice that of the low-skilled workers. 
B) high-skilled workers would have to earn a wage rate that is less than that of the low-skilled workers. 
C) high-skilled workers would have to earn a wage that is $2 more than the wage paid to low-skilled workers. 
D) low-skilled workers would have to earn a wage that is $2 more than the wage paid to high-skilled workers. 
E) high-skilled workers need to earn a wage that is between zero and $2 more than low-skilled workers. 
A) high-skilled workers would have to earn a wage rate that is twice that of the low-skilled workers. 
B) high-skilled workers would have to earn a wage rate that is less than that of the low-skilled workers. 
C) high-skilled workers would have to earn a wage that is $2 more than the wage paid to low-skilled workers. 
D) low-skilled workers would have to earn a wage that is $2 more than the wage paid to high-skilled workers. 
E) high-skilled workers need to earn a wage that is between zero and $2 more than low-skilled workers.

Unions try to raise the demand for their labour by

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

Complete the following sentence.Passing on wealth from one generation to another

An example of a nonrenewable natural resource is

The present value of a future payment of money will be higher the

In 2011, the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

In 2011, the median household income in Canada was

Which one of the following is not a reason why the wages of high-skilled workers exceed the wages of low-skilled workers?

To increase the demand for union labour, unions do all of the following except

Which of the following three statements is true? Human capital

If the market for a nonrenewable natural resource is currently in equilibrium, the price of the resource

If the price of the firm's output decreases, the value of marginal product curve

Income maintenance programs include all of the following programs except

To maximize profit, a firm hires labour until

A profit-maximizing firm will continue to hire labour until the

Use the figure below to answer the following questions. Figure 19.1.3 -The curve in Figure 19.1.3 is the

Table 19.4.2 -Refer to Table 19.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Use the figure below to answer the following questions. Figure 19.3.2 -Refer to Figure 19.3.2.For the employer to hire 40 hours per week of both high-skilled and low-skilled labour,

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

Unions try to raise the demand for their labour by

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

Complete the following sentence.Passing on wealth from one generation to another

An example of a nonrenewable natural resource is

The present value of a future payment of money will be higher the

In 2011, the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

In 2011, the median household income in Canada was

Which one of the following is not a reason why the wages of high-skilled workers exceed the wages of low-skilled workers?

To increase the demand for union labour, unions do all of the following except

Which of the following three statements is true? Human capital

If the market for a nonrenewable natural resource is currently in equilibrium, the price of the resource

If the price of the firm's output decreases, the value of marginal product curve

Income maintenance programs include all of the following programs except

To maximize profit, a firm hires labour until

A profit-maximizing firm will continue to hire labour until the

Use the figure below to answer the following questions. Figure 19.1.3 -The curve in Figure 19.1.3 is the

Table 19.4.2 -Refer to Table 19.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Use the figure below to answer the following questions. Figure 19.3.2 -Refer to Figure 19.3.2.For the employer to hire 40 hours per week of both high-skilled and low-skilled labour,

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