Question 1

Which of the following is not included in census income?

Accepted Answer

A)  wages and salaries. 
B)  property income. 
C)  cash welfare benefits. 
D)  in-kind transfers. 
A)  wages and salaries. 
B)  property income. 
C)  cash welfare benefits. 
D)  in-kind transfers.

Question 2

Since the demand for labor depends on the demand for the product labor produces,the demand for labor is called:

Accepted Answer

A)  primary demand. 
B)  secondary demand. 
C)  dependent demand. 
D)  derived demand. 
A)  primary demand. 
B)  secondary demand. 
C)  dependent demand. 
D)  derived demand.

Question 3

In the United States,families headed by single women have higher poverty rates than families headed by single men or by married couples.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements concerning the supply of labor is true?

Accepted Answer

A)  The supply of labor is determined by the prevailing wage rate. 
B)  The labor supply curve is downward sloping. 
C)  The wage rate has no effect on the supply of labor. 
D)  None of the above. 
A)  The supply of labor is determined by the prevailing wage rate. 
B)  The labor supply curve is downward sloping. 
C)  The wage rate has no effect on the supply of labor. 
D)  None of the above.

Question 5

Assume consumer demand for CD-ROMs increases.The result is a(n):

Accepted Answer

A)  increase in derived demand for workers in the CD-ROM industry. 
B)  increase in the marginal revenue product of firms in the CD-ROM industry. 
C)  rightward shift in the market demand for labor curve in the CD-ROM industry. 
D)  all of the above. 
E)  none of the above. 
A)  increase in derived demand for workers in the CD-ROM industry. 
B)  increase in the marginal revenue product of firms in the CD-ROM industry. 
C)  rightward shift in the market demand for labor curve in the CD-ROM industry. 
D)  all of the above. 
E)  none of the above.

Question 6

Exhibit 10-5 A perfectly competitive labor market
  
-In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Accepted Answer

A)  continue hiring 
B)  stop hiring 
C)  start firing 
D)  pay a wage above $15.00 to its workers 
A)  continue hiring 
B)  stop hiring 
C)  start firing 
D)  pay a wage above $15.00 to its workers

Question 7

If the price of labor falls,we can expect:

Accepted Answer

A)  demand for labor will increase. 
B)  quantity demanded of labor will increase. 
C)  demand for labor will decrease. 
D)  quantity demanded of labor will decrease. 
E)  marginal factor cost to rise in a competitive market. 
A)  demand for labor will increase. 
B)  quantity demanded of labor will increase. 
C)  demand for labor will decrease. 
D)  quantity demanded of labor will decrease. 
E)  marginal factor cost to rise in a competitive market.

Question 8

Exhibit 10-1 Labor and output data
  
-In Exhibit 10-1,if product price is fixed at $8,the MRP of the 5th worker is equal to:

Accepted Answer

A)  $50. 
B)  $80. 
C)  $10. 
D)  $100 
E)  $160. 
A)  $50. 
B)  $80. 
C)  $10. 
D)  $100 
E)  $160.

Question 9

If the market price of bicycle frames is $500,and frame welders earn a wage of $50,how many welders will be hired?

Accepted Answer

A)  10. 
B)  More than 10. 
C)  Fewer than 10. 
D)  Hiring will stop when the MP is 10. 
E)  Hiring will stop when the MP is 0.1. 
A)  10. 
B)  More than 10. 
C)  Fewer than 10. 
D)  Hiring will stop when the MP is 10. 
E)  Hiring will stop when the MP is 0.1.

Question 10

Currently,union membership in the United States is about:

Accepted Answer

A)  10 percent. 
B)  15 percent. 
C)  20 percent. 
D)  25 percent. 
A)  10 percent. 
B)  15 percent. 
C)  20 percent. 
D)  25 percent.

Question 11

Wage discrimination means workers with equal productivity are paid unequal wages,or workers with unequal productivity are paid equal wages.

Accepted Answer

A) True 
 B)False

Question 12

As a percentage of nonfarm workers,union membership in the United States grew most rapidly since 1945.

Accepted Answer

A) True 
 B)False

Question 13

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

Accepted Answer

A)  upward sloping. 
B)  downward sloping. 
C)  horizontal. 
D)  greater than MFC. 
E)  the MRP curve. 
A)  upward sloping. 
B)  downward sloping. 
C)  horizontal. 
D)  greater than MFC. 
E)  the MRP curve.

Question 14

The official poverty rate for all persons declined sharply between 1959 and:

Accepted Answer

A)  2000. 
B)  1970. 
C)  1980. 
D)  1990. 
A)  2000. 
B)  1970. 
C)  1980. 
D)  1990.

Question 15

For a perfectly competitive firm,marginal revenue product is equal to:

Accepted Answer

A)  price minus marginal cost. 
B)  price times marginal revenue. 
C)  price times marginal product. 
D)  none of the above. 
A)  price minus marginal cost. 
B)  price times marginal revenue. 
C)  price times marginal product. 
D)  none of the above.

Question 16

Of the following demographic groups,which has the lowest poverty rate in the U.S.?

Accepted Answer

A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university. 
A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.

Question 17

Marginal revenue product is defined as the extra:

Accepted Answer

A)  output a firm would receive after hiring one more unit of resource. 
B)  cost of hiring one more unit of resource 
C)  revenue earned by selling one more unit of product. 
D)  revenue earned by hiring one more unit of resource 
E)  output received by spending one more dollar on resources 
A)  output a firm would receive after hiring one more unit of resource. 
B)  cost of hiring one more unit of resource 
C)  revenue earned by selling one more unit of product. 
D)  revenue earned by hiring one more unit of resource 
E)  output received by spending one more dollar on resources

Question 18

Suppose there are 100 identical firms producing package delivery services.One of the firms finds that when it has to pay a wage rate of $7,it hires 20 delivery people.The firm charges an average price of $10 to deliver a package.From this information,we know that the package delivery industry is hiring a total of:

Accepted Answer

A)  100 workers. 
B)  200 workers. 
C)  700 workers. 
D)  2,000 workers. 
E)  10,000 workers. 
A)  100 workers. 
B)  200 workers. 
C)  700 workers. 
D)  2,000 workers. 
E)  10,000 workers.

Question 19

Exhibit 10-1 Labor and output data
  
-In Exhibit 10-1,if product price is fixed at $8,the MRP of the 2nd worker is equal to:

Accepted Answer

A)  $25. 
B)  $125. 
C)  $200. 
D)  $175. 
E)  $45. 
A)  $25. 
B)  $125. 
C)  $200. 
D)  $175. 
E)  $45.

Question 20

As the price of a competitive firm's product rises,the firm's demand for labor also rises.

Accepted Answer

A) True 
 B)False

Exam 10: Labor Markets and Income Distribution

Which of the following is not included in census income?

Since the demand for labor depends on the demand for the product labor produces,the demand for labor is called:

In the United States,families headed by single women have higher poverty rates than families headed by single men or by married couples.

Which of the following statements concerning the supply of labor is true?

Assume consumer demand for CD-ROMs increases.The result is a(n):

Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

If the price of labor falls,we can expect:

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 5th worker is equal to:

If the market price of bicycle frames is $500,and frame welders earn a wage of $50,how many welders will be hired?

Currently,union membership in the United States is about:

Wage discrimination means workers with equal productivity are paid unequal wages,or workers with unequal productivity are paid equal wages.

As a percentage of nonfarm workers,union membership in the United States grew most rapidly since 1945.

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

The official poverty rate for all persons declined sharply between 1959 and:

For a perfectly competitive firm,marginal revenue product is equal to:

Of the following demographic groups,which has the lowest poverty rate in the U.S.?

Marginal revenue product is defined as the extra:

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 2nd worker is equal to:

As the price of a competitive firm's product rises,the firm's demand for labor also rises.

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