Question 1

Which of the following is a result of discrimination?

Accepted Answer

A)  Two groups of workers earning different wages. 
B)  Two groups of workers paid the same wage, but proportionally fewer of one group are employed. 
C)  Equal pay and equal employment opportunities for two groups of workers with different productivities. 
D)  No workers from a particular group are employed. 
A)  Two groups of workers earning different wages. 
B)  Two groups of workers paid the same wage, but proportionally fewer of one group are employed. 
C)  Equal pay and equal employment opportunities for two groups of workers with different productivities. 
D)  No workers from a particular group are employed.

Question 2

Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.

Accepted Answer

The profit maximizing quantity of labor

Question 3

Which of the following would be a human capital investment?

Accepted Answer

A)  On-the-job training programs. 
B)  Health care programs. 
C)  Formal education. 
D)  All of the above. 
A)  On-the-job training programs. 
B)  Health care programs. 
C)  Formal education. 
D)  All of the above.

Question 4

One reason the supply of carpenters is greater than the supply of physicians is because:

Accepted Answer

A)  carpenters demand less income. 
B)  physicians do not belong to a union. 
C)  of differences in human capital. 
D)  carpenters belong to unions. 
A)  carpenters demand less income. 
B)  physicians do not belong to a union. 
C)  of differences in human capital. 
D)  carpenters belong to unions.

Question 5

Exhibit 10-5 A perfectly competitive labor market
  
-In Exhibit 10-5,at what wage rate will the firms hire these workers?

Accepted Answer

A)  $25.00 
B)  $20.00 
C)  $15.00 
D)  $10.00 
E)  $0 
A)  $25.00 
B)  $20.00 
C)  $15.00 
D)  $10.00 
E)  $0

Question 6

A union may attempt to obtain stricter certification requirements or longer apprenticeships.These changes would raise workers' wages because they:

Accepted Answer

A)  create unnecessary unemployment. 
B)  shift in labor supply curve leftward. 
C)  decrease the marginal product of labor. 
D)  reduce management's use of featherbedding. 
A)  create unnecessary unemployment. 
B)  shift in labor supply curve leftward. 
C)  decrease the marginal product of labor. 
D)  reduce management's use of featherbedding.

Question 7

Which of the following will decrease the demand for fast-food burger workers' labor?

Accepted Answer

A)  More people start working two jobs and eat more fast food. 
B)  The price of pizza, a substitute for burgers, decreases. 
C)  A new technology allows burgers to be produced faster. 
D)  Workers get additional training that increases productivity. 
E)  Workers form a union and get higher wages. 
A)  More people start working two jobs and eat more fast food. 
B)  The price of pizza, a substitute for burgers, decreases. 
C)  A new technology allows burgers to be produced faster. 
D)  Workers get additional training that increases productivity. 
E)  Workers form a union and get higher wages.

Question 8

Which of the following statements is true?

Accepted Answer

A)  Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. 
B)  Discrimination is no longer a problem in the United States. 
C)  A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. 
D)  A negative income tax system is a plan where those below a certain income receive a cash payment from government. 
A)  Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. 
B)  Discrimination is no longer a problem in the United States. 
C)  A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. 
D)  A negative income tax system is a plan where those below a certain income receive a cash payment from government.

Question 9

Exhibit 10-7 Income distribution for three countries
  
-Exhibit 10-7 shows the percentage of income received by each population quintile.In Country I we can conclude that the:

Accepted Answer

A)  richest 20 percent of the population received 25 percent of the economy's income. 
B)  richest 20 percent of the population received 40 percent of the economy's income. 
C)  richest 20 percent of the population received 80 percent of the economy's income. 
D)  least-wealthy 20 percent of the population received 40 percent of the economy's income. 
E)  richest 40 percent of the population received 25 percent of the economy's income. 
A)  richest 20 percent of the population received 25 percent of the economy's income. 
B)  richest 20 percent of the population received 40 percent of the economy's income. 
C)  richest 20 percent of the population received 80 percent of the economy's income. 
D)  least-wealthy 20 percent of the population received 40 percent of the economy's income. 
E)  richest 40 percent of the population received 25 percent of the economy's income.

Question 10

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

Accepted Answer

A)  The wage rate has no effect on the supply of labor. 
B)  The labor supply curve is downward sloping. 
C)  The supply of labor is determined by the prevailing wage rate. 
D)  The typical labor supply curve is upward sloping. 
A)  The wage rate has no effect on the supply of labor. 
B)  The labor supply curve is downward sloping. 
C)  The supply of labor is determined by the prevailing wage rate. 
D)  The typical labor supply curve is upward sloping.

Question 11

For a perfectly competitive firm,marginal revenue product is equal to price minus marginal revenue.

Accepted Answer

A) True 
 B)False

Question 12

The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:

Accepted Answer

A) d and e. 
B) the price of Coca-Cola increases. 
C) the firms innovate with new technology that raises labor productivity. 
D) the price of Pepsi decreases. 
E) Coca-Cola workers become unionized. 
A) d and e. 
B) the price of Coca-Cola increases. 
C) the firms innovate with new technology that raises labor productivity. 
D) the price of Pepsi decreases. 
E) Coca-Cola workers become unionized.

Question 13

A competitive car wash currently hires 4 workers,who together can wash 80 cars per day.The market price of car washes is $5 per wash,and the price of workers is $60 per day.The car wash should hire a fifth worker if it would increase total production to at least:

Accepted Answer

A)  92 cars per day. 
B)  100 cars per day. 
C)  104 cars per day. 
D)  110 cars per day. 
A)  92 cars per day. 
B)  100 cars per day. 
C)  104 cars per day. 
D)  110 cars per day.

Question 14

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service.Such a law would likely reduce women's wages because:

Accepted Answer

A)  women would be overqualified for "non-dangerous" jobs. 
B)  labor supply in female-intensive occupations would increase. 
C)  women would be less likely to obtain college degrees. 
D)  comparable worth would no longer exist between men's and women's occupations. 
A)  women would be overqualified for "non-dangerous" jobs. 
B)  labor supply in female-intensive occupations would increase. 
C)  women would be less likely to obtain college degrees. 
D)  comparable worth would no longer exist between men's and women's occupations.

Question 15

A union can influence the demand for labor by:

Accepted Answer

A)  requiring union fees. 
B)  raising union fees. 
C)  effective advertising that convinces customers to buy the "union label." 
D)  all of the above. 
A)  requiring union fees. 
B)  raising union fees. 
C)  effective advertising that convinces customers to buy the "union label." 
D)  all of the above.

Question 16

Discrimination lowers 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 17

Medicaid and food stamps are:

Accepted Answer

A) available only to families. 
B) counterproductive. 
C) forms of in-kind assistance. 
D) forms of cash assistance. 
E) both c and d. 
A) available only to families. 
B) counterproductive. 
C) forms of in-kind assistance. 
D) forms of cash assistance. 
E) both c and d.

Question 18

Which of the following is not an in-kind subsidy?

Accepted Answer

A)  Food stamps. 
B)  Low-cost rental housing. 
C)  Medicare. 
D)  Medicaid. 
E)  Unemployment compensation. 
A)  Food stamps. 
B)  Low-cost rental housing. 
C)  Medicare. 
D)  Medicaid. 
E)  Unemployment compensation.

Question 19

If unions develop increasingly difficult,expensive,and time-consuming requirements to qualify for membership,which of the following is most likely to occur?

Accepted Answer

A)  Equilibrium market wages will tend to fall. 
B)  The supply of labor will increase. 
C)  The supply of labor will remain unchanged. 
D)  The supply of labor will decrease. 
A)  Equilibrium market wages will tend to fall. 
B)  The supply of labor will increase. 
C)  The supply of labor will remain unchanged. 
D)  The supply of labor will decrease.

Question 20

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive.Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day.The marginal revenue product for the 101st worker is:

Accepted Answer

A)  $10.00. 
B)  $500. 
C)  $5,000. 
D)  $1,010. 
A)  $10.00. 
B)  $500. 
C)  $5,000. 
D)  $1,010.

Exam 10: Labor Markets and Income Distribution

Which of the following is a result of discrimination?

Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.

Which of the following would be a human capital investment?

One reason the supply of carpenters is greater than the supply of physicians is because:

Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,at what wage rate will the firms hire these workers?

A union may attempt to obtain stricter certification requirements or longer apprenticeships.These changes would raise workers' wages because they:

Which of the following will decrease the demand for fast-food burger workers' labor?

Which of the following statements is true?

Exhibit 10-7 Income distribution for three countries -Exhibit 10-7 shows the percentage of income received by each population quintile.In Country I we can conclude that the:

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

For a perfectly competitive firm,marginal revenue product is equal to price minus marginal revenue.

The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:

A competitive car wash currently hires 4 workers,who together can wash 80 cars per day.The market price of car washes is $5 per wash,and the price of workers is $60 per day.The car wash should hire a fifth worker if it would increase total production to at least:

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service.Such a law would likely reduce women's wages because:

A union can influence the demand for labor by:

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

Medicaid and food stamps are:

Which of the following is not an in-kind subsidy?

If unions develop increasingly difficult,expensive,and time-consuming requirements to qualify for membership,which of the following is most likely to occur?

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive.Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day.The marginal revenue product for the 101st worker is:

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