Question 1

Which of the following most closely represents the share of total U.S.income to the poorest 20 percent of all U.S.families?

Accepted Answer

A)  47 percent. 
B)  23 percent. 
C)  10 percent. 
D)  4 percent. 
A)  47 percent. 
B)  23 percent. 
C)  10 percent. 
D)  4 percent. D

Question 2

Medicaid is an example of a cash assistance poverty program.

Accepted Answer

A) True 
 B)False  False

Question 3

The social security tax is called FICA,which stands for:

Accepted Answer

A)  Federal Investment Corporation of America. 
B)  Federal Income Contributions to Americans. 
C)  Funding from Individuals and Corporations in America. 
D)  Federal Insurance Contributions Act. 
A)  Federal Investment Corporation of America. 
B)  Federal Income Contributions to Americans. 
C)  Funding from Individuals and Corporations in America. 
D)  Federal Insurance Contributions Act. D

Question 4

Which one of the following examples is a cash assistance program used to fight poverty in the United States?

Accepted Answer

A)  Medicaid. 
B)  Food stamps. 
C)  Home energy assistance. 
D)  Head Start. 
E)  Temporary Assistance to Needy Families (TANF). 
A)  Medicaid. 
B)  Food stamps. 
C)  Home energy assistance. 
D)  Head Start. 
E)  Temporary Assistance to Needy Families (TANF).

Question 5

Which of the following might increase the supply curve of labor?

Accepted Answer

A)  Elimination of discrimination against blacks. 
B)  Elimination of discrimination against females. 
C)  Easing licensing requirements. 
D)  All of the above. 
A)  Elimination of discrimination against blacks. 
B)  Elimination of discrimination against females. 
C)  Easing licensing requirements. 
D)  All of the above.

Question 6

The official U.S.poverty line for a family of four is calculated by taking 3 times the annual cost of:

Accepted Answer

A)  public housing. 
B)  basic medical care. 
C)  utilities and transportation. 
D)  a minimal diet. 
A)  public housing. 
B)  basic medical care. 
C)  utilities and transportation. 
D)  a minimal diet.

Question 7

The marginal revenue product of labor is:

Accepted Answer

A)  how much labor can be purchased with the revenue from the sale of one more unit of the good. 
B)  how much does the marginal revenue change when you add more labor. 
C)  the same as the marginal revenue product of capital in equilibrium. 
D)  determined by the wage rate. 
E)  the contribution to total revenue made by the marginal laborer. 
A)  how much labor can be purchased with the revenue from the sale of one more unit of the good. 
B)  how much does the marginal revenue change when you add more labor. 
C)  the same as the marginal revenue product of capital in equilibrium. 
D)  determined by the wage rate. 
E)  the contribution to total revenue made by the marginal laborer.

Question 8

Explain why wage rates might rise a Joe's Quik-Print Shop if Joe replace his aging copy machines with state-of-the-art copy machines.

Accepted Answer

The improvement in technology will boost

Question 9

A decrease in the price of the output will decrease the firm's demand for labor.

Accepted Answer

A) True 
 B)False

Question 10

Official figures indicate that the percentage of persons below the poverty level in the U.S.is more today than it was in 1959.

Accepted Answer

A) True 
 B)False

Question 11

In a competitive labor market,the demand for labor X that produces product Y will increase if the demand for product Y increases.

Accepted Answer

A) True 
 B)False

Question 12

Exhibit 10-1 Labor and output data
  
-In Exhibit 10-1,the marginal product of the 4th unit of labor is equal to:

Accepted Answer

A)  80. 
B)  45. 
C)  35. 
D)  100. 
E)  20. 
A)  80. 
B)  45. 
C)  35. 
D)  100. 
E)  20.

Question 13

A technological advance that increases labor productivity will:

Accepted Answer

A)  lower wages. 
B)  decrease the demand for labor as fewer workers are needed. 
C)  decrease the supply of labor as fewer workers are needed. 
D)  increase the demand for labor as MP rises. 
E)  decrease the demand for labor as MP falls. 
A)  lower wages. 
B)  decrease the demand for labor as fewer workers are needed. 
C)  decrease the supply of labor as fewer workers are needed. 
D)  increase the demand for labor as MP rises. 
E)  decrease the demand for labor as MP falls.

Question 14

Dividing the change in total revenue by the change in labor gives:

Accepted Answer

A)  marginal product of labor. 
B)  marginal revenue product of labor. 
C)  the price of the output. 
D)  demand for the output. 
E)  economic efficiency. 
A)  marginal product of labor. 
B)  marginal revenue product of labor. 
C)  the price of the output. 
D)  demand for the output. 
E)  economic efficiency.

Question 15

The poorest 20 percent of the U.S.population received approximately ____ of total income?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent 
A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent

Question 16

The official poverty line is defined as:

Accepted Answer

A)  one-half the average family income. 
B)  one-third the average family income. 
C)  three times the cost of a minimal food requirement. 
D)  two times the cost of a minimal food requirement. 
A)  one-half the average family income. 
B)  one-third the average family income. 
C)  three times the cost of a minimal food requirement. 
D)  two times the cost of a minimal food requirement.

Question 17

Which of the following determines equilibrium wages in perfectly competitive labor markets?

Accepted Answer

A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage. 
A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage.

Question 18

The demand for labor is:

Accepted Answer

A)  derived demand. 
B)  featherbedding demand. 
C)  marginal utility demand. 
D)  all of the above. 
A)  derived demand. 
B)  featherbedding demand. 
C)  marginal utility demand. 
D)  all of the above.

Question 19

A worker's accumulated investment in education,training,experience,and health is called:

Accepted Answer

A)  derived labor demand. 
B)  collective entrepreneurship. 
C)  seniority. 
D)  human capital. 
A)  derived labor demand. 
B)  collective entrepreneurship. 
C)  seniority. 
D)  human capital.

Question 20

The highest fifth of all families receive approximately ____ of the distribution of annual money income among families.

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  50 percent 
A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  50 percent

Exam 10: Labor Markets and Income Distribution

Which of the following most closely represents the share of total U.S.income to the poorest 20 percent of all U.S.families?

Medicaid is an example of a cash assistance poverty program.

The social security tax is called FICA,which stands for:

Which one of the following examples is a cash assistance program used to fight poverty in the United States?

Which of the following might increase the supply curve of labor?

The official U.S.poverty line for a family of four is calculated by taking 3 times the annual cost of:

The marginal revenue product of labor is:

Explain why wage rates might rise a Joe's Quik-Print Shop if Joe replace his aging copy machines with state-of-the-art copy machines.

A decrease in the price of the output will decrease the firm's demand for labor.

Official figures indicate that the percentage of persons below the poverty level in the U.S.is more today than it was in 1959.

In a competitive labor market,the demand for labor X that produces product Y will increase if the demand for product Y increases.

Exhibit 10-1 Labor and output data -In Exhibit 10-1,the marginal product of the 4th unit of labor is equal to:

A technological advance that increases labor productivity will:

Dividing the change in total revenue by the change in labor gives:

The poorest 20 percent of the U.S.population received approximately ____ of total income?

The official poverty line is defined as:

Which of the following determines equilibrium wages in perfectly competitive labor markets?

The demand for labor is:

A worker's accumulated investment in education,training,experience,and health is called:

The highest fifth of all families receive approximately ____ of the distribution of annual money income among families.

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters