Question 1

Which of the following government programs provides recipients with unrestricted cash payments?

Accepted Answer

A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program. 
D)  Housing assistance programs. 
A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program. 
D)  Housing assistance programs.

Question 2

If a union is able to successfully lobby Congress to limit imports of rival products,and thus to raise the demand (and thus price)for goods or services they make,then which of the following best describes the outcome?

Accepted Answer

A)  The supply of labor will increase. 
B)  The demand for labor will increase. 
C)  The supply of labor will decrease. 
D)  The demand for labor will decrease. 
A)  The supply of labor will increase. 
B)  The demand for labor will increase. 
C)  The supply of labor will decrease. 
D)  The demand for labor will decrease.

Question 3

Which of the following government programs provides recipients with in-kind benefits?

Accepted Answer

A)  Temporary Assistance to Needy Families (TANF). 
B)  Social Security. 
C)  The food stamp program. 
D)  Unemployment compensation. 
A)  Temporary Assistance to Needy Families (TANF). 
B)  Social Security. 
C)  The food stamp program. 
D)  Unemployment compensation.

Question 4

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.

Question 5

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

Accepted Answer

A) True 
 B)False

Question 6

An increase in the demand for a product will shift the demand curve for labor producing the product to the right.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 10-2 Labor supply curve
  
-In Exhibit 10-2,the wage for the 6th employee is equal to:

Accepted Answer

A)  $18. 
B)  $36. 
C)  $3. 
D)  $108. 
E)  unable to determine with this information. 
A)  $18. 
B)  $36. 
C)  $3. 
D)  $108. 
E)  unable to determine with this information.

Question 8

Marginal revenue product of labor measures the extra revenue generated to the firm from the employment of an additional worker.

Accepted Answer

A) True 
 B)False

Question 9

In recent years,the poorest 20 percent of the U.S.population received approximately 15 percent of the total income.

Accepted Answer

A) True 
 B)False

Question 10

In a competitive labor market,marginal revenue product equals marginal product times the wage rate.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct?

Accepted Answer

A)  About 25 percent of the U.S. population earns an income below the poverty line. 
B)  About 50 percent of blacks earn an income below the poverty line. 
C)  Since 1980 the fraction of persons below the poverty level has risen sharply. 
D)  None of the above. 
A)  About 25 percent of the U.S. population earns an income below the poverty line. 
B)  About 50 percent of blacks earn an income below the poverty line. 
C)  Since 1980 the fraction of persons below the poverty level has risen sharply. 
D)  None of the above.

Question 12

Exhibit 10-2 Labor supply curve
  
-In Exhibit 10-2,the total wage cost of hiring 6 employees is:

Accepted Answer

A)  $18 per hour. 
B)  $36 per hour. 
C)  $3 per hour. 
D)  $108 per hour. 
E)  $648 per hour. 
A)  $18 per hour. 
B)  $36 per hour. 
C)  $3 per hour. 
D)  $108 per hour. 
E)  $648 per hour.

Question 13

Statistics on families below the poverty line may be overstated because:

Accepted Answer

A)  the poor are primarily children who soon will move out of poverty. 
B)  poverty in the United States is rich compared to poverty in other nations. 
C)  the income levels used to measure poverty do not include in-kind transfers. 
D)  unemployment compensation is a program closed to the poor. 
A)  the poor are primarily children who soon will move out of poverty. 
B)  poverty in the United States is rich compared to poverty in other nations. 
C)  the income levels used to measure poverty do not include in-kind transfers. 
D)  unemployment compensation is a program closed to the poor.

Question 14

Comparable worth is the principle that:

Accepted Answer

A)  goods and services priced the same have about the same worth. 
B)  the wage rate equals the value of productivity. 
C)  men and women should be paid comparably. 
D)  employees who perform comparable jobs should be paid the same wage. 
A)  goods and services priced the same have about the same worth. 
B)  the wage rate equals the value of productivity. 
C)  men and women should be paid comparably. 
D)  employees who perform comparable jobs should be paid the same wage.

Question 15

Some people believe that employees should be paid the same wages when their jobs,although different,require similar levels of education,training,experience,and responsibility.This principle is known as:

Accepted Answer

A)  the equal-pay-for-equal work doctrine. 
B)  Lorenz equivalence. 
C)  marginal productivity theory. 
D)  comparable worth. 
A)  the equal-pay-for-equal work doctrine. 
B)  Lorenz equivalence. 
C)  marginal productivity theory. 
D)  comparable worth.

Question 16

Describe the two basic strategies of unions in increasing wage rates for their members.

Accepted Answer

Increasing demand or decreasing supply o

Question 17

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Accepted Answer

A) True 
 B)False

Question 18

Exhibit 10-3 Supply and demand curves for food servers
  
-In Exhibit 10-3,the equilibrium wage and the number of food servers employed per day,respectively,are:

Accepted Answer

A)  $2.00 and 5 thousand. 
B)  $4.00 and 10 thousand. 
C)  $6.00 and 15 thousand 
D)  $8.00 and 20 thousand. 
A)  $2.00 and 5 thousand. 
B)  $4.00 and 10 thousand. 
C)  $6.00 and 15 thousand 
D)  $8.00 and 20 thousand.

Question 19

Wage discrimination means minority workers are paid unequal wages.

Accepted Answer

A) True 
 B)False

Question 20

If the wage rate is fixed at a certain level,the:

Accepted Answer

A)  total wage cost curve is horizontal. 
B)  total wage cost curve is a straight upward sloping line. 
C)  MP must be constant. 
D)  total wage cost curve will increase at an increasing rate. 
E)  total wage cost curve will increase at a decreasing rate. 
A)  total wage cost curve is horizontal. 
B)  total wage cost curve is a straight upward sloping line. 
C)  MP must be constant. 
D)  total wage cost curve will increase at an increasing rate. 
E)  total wage cost curve will increase at a decreasing rate.

Exam 10: Labor Markets and Income Distribution

Which of the following government programs provides recipients with unrestricted cash payments?

If a union is able to successfully lobby Congress to limit imports of rival products,and thus to raise the demand (and thus price)for goods or services they make,then which of the following best describes the outcome?

Which of the following government programs provides recipients with in-kind benefits?

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

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

An increase in the demand for a product will shift the demand curve for labor producing the product to the right.

Exhibit 10-2 Labor supply curve -In Exhibit 10-2,the wage for the 6th employee is equal to:

Marginal revenue product of labor measures the extra revenue generated to the firm from the employment of an additional worker.

In recent years,the poorest 20 percent of the U.S.population received approximately 15 percent of the total income.

In a competitive labor market,marginal revenue product equals marginal product times the wage rate.

Which of the following statements is correct?

Exhibit 10-2 Labor supply curve -In Exhibit 10-2,the total wage cost of hiring 6 employees is:

Statistics on families below the poverty line may be overstated because:

Comparable worth is the principle that:

Some people believe that employees should be paid the same wages when their jobs,although different,require similar levels of education,training,experience,and responsibility.This principle is known as:

Describe the two basic strategies of unions in increasing wage rates for their members.

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Exhibit 10-3 Supply and demand curves for food servers -In Exhibit 10-3,the equilibrium wage and the number of food servers employed per day,respectively,are:

Wage discrimination means minority workers are paid unequal wages.

If the wage rate is fixed at a certain level,the:

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

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