Question 1

In the United States since 1970,the poverty rate for blacks has been about:

Accepted Answer

A)  1-2 percentage point higher than the poverty rate for whites. 
B)  twice the poverty rate for whites. 
C)  three times the poverty rate for whites. 
D)  five times the poverty rate for whites. 
A)  1-2 percentage point higher than the poverty rate for whites. 
B)  twice the poverty rate for whites. 
C)  three times the poverty rate for whites. 
D)  five times the poverty rate for whites.

Question 2

Which of the following statements is true?

Accepted Answer

A)  All people in poverty are on welfare. 
B)  Unemployment compensation is an example of an in-kind transfer. 
C)  Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished. 
D)  After cash assistance and in-kind transfers are considered the distribution of income in the United States is more unequal. 
E)  All of the above. 
A)  All people in poverty are on welfare. 
B)  Unemployment compensation is an example of an in-kind transfer. 
C)  Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished. 
D)  After cash assistance and in-kind transfers are considered the distribution of income in the United States is more unequal. 
E)  All of the above.

Question 3

Critics of an equal distribution of income argue that the effect would be to raise the incentive to be productive.

Accepted Answer

A) True 
 B)False

Question 4

The geographic region in the United States with the highest poverty rate is the South.

Accepted Answer

A) True 
 B)False

Question 5

The optimal number of workers to be hired by a firm operating in a competitive labor market is where:

Accepted Answer

A)  P = MRP. 
B)  MP = MRP. 
C)  MRP = w. 
D)  P = w. 
E)  TWC = w. 
A)  P = MRP. 
B)  MP = MRP. 
C)  MRP = w. 
D)  P = w. 
E)  TWC = w.

Question 6

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product exceeds the wage rate.

Accepted Answer

A) True 
 B)False

Question 7

An advance in technology which increases labor productivity will shift the:

Accepted Answer

A)  labor demand curve to the left. 
B)  MFC curve to the left. 
C)  MP curve downward. 
D)  labor demand curve to the right. 
E)  product demand to the right. 
A)  labor demand curve to the left. 
B)  MFC curve to the left. 
C)  MP curve downward. 
D)  labor demand curve to the right. 
E)  product demand to the right.

Question 8

"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:

Accepted Answer

A) untrue. 
B) a form of discrimination. 
C) a conflict between equity and efficiency. 
D) a conflict between full employment and economic growth. 
E) b and c. 
A) untrue. 
B) a form of discrimination. 
C) a conflict between equity and efficiency. 
D) a conflict between full employment and economic growth. 
E) b and c.

Question 9

An improvement in technology that increases the marginal product will shift the demand for labor curve to the right.

Accepted Answer

A) True 
 B)False

Question 10

Exhibit 10-4 Sally's labor supply data
  
-In Exhibit 10-4,if Sally can produce 2 units of output for every hour that she works,then:

Accepted Answer

A)  she will earn a wage of $50. 
B)  she is not productive enough to be hired at all. 
C)  her MRP is less than her wage. 
D)  she will work 30 hours. 
E)  her wage cannot be determined. 
A)  she will earn a wage of $50. 
B)  she is not productive enough to be hired at all. 
C)  her MRP is less than her wage. 
D)  she will work 30 hours. 
E)  her wage cannot be determined.

Question 11

A firm's demand for labor depends on,in part,the demand for the firm's product.To summarize this idea,economists say that the demand for labor is:

Accepted Answer

A)  derived demand. 
B)  marginal demand. 
C)  secondary demand. 
D)  monopsonistic demand. 
A)  derived demand. 
B)  marginal demand. 
C)  secondary demand. 
D)  monopsonistic demand.

Question 12

Explain how the presence of a superstar basketball player can increase the marginal revenue product of the other players on the team.

Accepted Answer

The superstar is a complement,raising th

Question 13

In a competitive labor market,the change in total labor costs divided by the change in labor is always equal to:

Accepted Answer

A)  one. 
B)  the wage rate. 
C)  the number of firms in the market. 
D)  the change in total revenue. 
E)  the competitive market price of the output. 
A)  one. 
B)  the wage rate. 
C)  the number of firms in the market. 
D)  the change in total revenue. 
E)  the competitive market price of the output.

Question 14

Marginal revenue product is measured by:

Accepted Answer

A)  MR x price. 
B)  MR x MC. 
C)  TR/MP. 
D)  MP x price. 
E)  TC/MP. 
A)  MR x price. 
B)  MR x MC. 
C)  TR/MP. 
D)  MP x price. 
E)  TC/MP.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?

Accepted Answer

A)  Wages will rise, and quantity of labor will fall. 
B)  Wages will rise, and quantity of labor will rise. 
C)  Wages will fall, and quantity of labor will fall. 
D)  Wages will fall, and quantity of labor will rise. 
E)  Wages and quantity of labor will remain the same. 
A)  Wages will rise, and quantity of labor will fall. 
B)  Wages will rise, and quantity of labor will rise. 
C)  Wages will fall, and quantity of labor will fall. 
D)  Wages will fall, and quantity of labor will rise. 
E)  Wages and quantity of labor will remain the same.

Question 17

Exhibit 10-4 Sally's labor supply data
  
-In Exhibit 10-4,if the wage rate is $10,how many hours will Sally work?

Accepted Answer

A)  20. 
B)  30. 
C)  35. 
D)  40. 
E)  50. 
A)  20. 
B)  30. 
C)  35. 
D)  40. 
E)  50.

Question 18

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

Accepted Answer

A) True 
 B)False

Question 19

Starting in 1964,the U.S.government has defined the poverty line as income at or below ____ the amount of money needed to buy a minimum diet for all family members.

Accepted Answer

A)  two times 
B)  three times 
C)  four times 
D)  five times 
A)  two times 
B)  three times 
C)  four times 
D)  five times

Question 20

Which of the following are not counted when we compare a family's income to the poverty line?

Accepted Answer

A) In-kind transfers such as food stamps,Medicaid,and public housing. 
B) Cash welfare payments such as from social security. 
C) Cash payments when a worker becomes unemployed. 
D) Both a.and b.above are correct. 
A) In-kind transfers such as food stamps,Medicaid,and public housing. 
B) Cash welfare payments such as from social security. 
C) Cash payments when a worker becomes unemployed. 
D) Both a.and b.above are correct.

Exam 10: Labor Markets and Income Distribution

In the United States since 1970,the poverty rate for blacks has been about:

Which of the following statements is true?

Critics of an equal distribution of income argue that the effect would be to raise the incentive to be productive.

The geographic region in the United States with the highest poverty rate is the South.

The optimal number of workers to be hired by a firm operating in a competitive labor market is where:

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product exceeds the wage rate.

An advance in technology which increases labor productivity will shift the:

"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:

An improvement in technology that increases the marginal product will shift the demand for labor curve to the right.

Exhibit 10-4 Sally's labor supply data -In Exhibit 10-4,if Sally can produce 2 units of output for every hour that she works,then:

A firm's demand for labor depends on,in part,the demand for the firm's product.To summarize this idea,economists say that the demand for labor is:

Explain how the presence of a superstar basketball player can increase the marginal revenue product of the other players on the team.

In a competitive labor market,the change in total labor costs divided by the change in labor is always equal to:

Marginal revenue product is measured by:

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

A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?

Exhibit 10-4 Sally's labor supply data -In Exhibit 10-4,if the wage rate is $10,how many hours will Sally work?

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

Starting in 1964,the U.S.government has defined the poverty line as income at or below ____ the amount of money needed to buy a minimum diet for all family members.

Which of the following are not counted when we compare a family's income to the poverty line?

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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