Question 1

Other things equal,assume consumer demand for children's toys increases.The result is a(n):

Accepted Answer

A)  rightward shift in the market demand for labor curve in the toy industry. 
B)  increase in the marginal revenue product of firms in the toy industry. 
C)  increase in derived demand for workers in the toy industry. 
D)  all of the above. 
A)  rightward shift in the market demand for labor curve in the toy industry. 
B)  increase in the marginal revenue product of firms in the toy industry. 
C)  increase in derived demand for workers in the toy industry. 
D)  all of the above.

Question 2

When determining whether a family's income is below the official poverty rate,non-cash benefits from the government,such as food stamps,housing and medical benefits,are also included.

Accepted Answer

A) True 
 B)False

Question 3

The marginal revenue product can be written as:

Accepted Answer

A)  TR/P. 
B)  w/Q. 
C)  MP x P. 
D)  MRP x P 
E)  w x L. 
A)  TR/P. 
B)  w/Q. 
C)  MP x P. 
D)  MRP x P 
E)  w x L.

Question 4

An individual firm in a competitive labor market faces a(n):

Accepted Answer

A)  horizontal labor supply curve. 
B)  backward-bending labor supply curve. 
C)  downward-sloping labor supply curve. 
D)  upward-sloping labor supply curve. 
E)  vertical labor supply curve. 
A)  horizontal labor supply curve. 
B)  backward-bending labor supply curve. 
C)  downward-sloping labor supply curve. 
D)  upward-sloping labor supply curve. 
E)  vertical labor supply curve.

Question 5

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.

Question 6

What happens to the MP of labor when the market price of the good produced increases?

Accepted Answer

A)  Increases proportional to price. 
B)  Decreases proportional to price. 
C)  Stays the same. 
D)  Falls because quantity demanded falls. 
E)  Rises because quantity demanded falls. 
A)  Increases proportional to price. 
B)  Decreases proportional to price. 
C)  Stays the same. 
D)  Falls because quantity demanded falls. 
E)  Rises because quantity demanded falls.

Question 7

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

Accepted Answer

A)  $35. 
B)  $125. 
C)  $25. 
D)  $175. 
E)  $100. 
A)  $35. 
B)  $125. 
C)  $25. 
D)  $175. 
E)  $100.

Question 8

Which of the following program(s)examples is (are)in-kind assistance to fight poverty in the United States?

Accepted Answer

A) b and e. 
B) Medicaid. 
C) Unemployment benefits. 
D) Temporary Assistance to Needy Families (TANF). 
E) Food stamps. 
A) b and e. 
B) Medicaid. 
C) Unemployment benefits. 
D) Temporary Assistance to Needy Families (TANF). 
E) Food stamps.

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 III,we can conclude that the:

Accepted Answer

A)  majority of the people receive the majority of the income. 
B)  richest 20 percent of the population received 75 percent of the economy's income. 
C)  richest 20 percent of the population received 78 percent of the economy's income. 
D)  richest 40 percent of the population received 78 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 78 percent of the economy's income. 
A)  majority of the people receive the majority of the income. 
B)  richest 20 percent of the population received 75 percent of the economy's income. 
C)  richest 20 percent of the population received 78 percent of the economy's income. 
D)  richest 40 percent of the population received 78 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 78 percent of the economy's income.

Question 10

If product price increases,then:

Accepted Answer

A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease. 
A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease.

Question 11

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

Accepted Answer

A)  physicians do not belong to a union. 
B)  carpenters demand less income. 
C)  carpenters belong to unions. 
D)  none of the above. 
A)  physicians do not belong to a union. 
B)  carpenters demand less income. 
C)  carpenters belong to unions. 
D)  none of the above.

Question 12

Featherbedding allows unions to increase wages by:

Accepted Answer

A)  limiting the supply of labor. 
B)  increasing firms' demand for labor. 
C)  forcing firms to accept higher-than-equilibrium wages. 
D)  reducing labor share of payroll taxes. 
A)  limiting the supply of labor. 
B)  increasing firms' demand for labor. 
C)  forcing firms to accept higher-than-equilibrium wages. 
D)  reducing labor share of payroll taxes.

Question 13

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

Accepted Answer

A)  Increasing licensing requirements. 
B)  Increasing discrimination against females. 
C)  Increasing discrimination against blacks. 
D)  All of the above. 
E)  None of the above. 
A)  Increasing licensing requirements. 
B)  Increasing discrimination against females. 
C)  Increasing discrimination against blacks. 
D)  All of the above. 
E)  None of the above.

Question 14

Exhibit 10-3 Supply and demand curves for food servers
  
-In Exhibit 10-3,assume that both input and output markets are perfectly competitive.If one additional server increases the number of meals sold by four per day and each meal sells for $10,each additional food servers will be paid:

Accepted Answer

A)  $16 per day. 
B)  $32 per day. 
C)  $36 per day. 
D)  $40 per day. 
E)  none of the above. 
A)  $16 per day. 
B)  $32 per day. 
C)  $36 per day. 
D)  $40 per day. 
E)  none of the above.

Question 15

Exhibit 10-1 Labor and output data
  
-In Exhibit 10-1,if product price is fixed at $5,the MRP of the 4th worker is equal to:

Accepted Answer

A)  $35. 
B)  $125. 
C)  $25. 
D)  $175. 
E)  $100. 
A)  $35. 
B)  $125. 
C)  $25. 
D)  $175. 
E)  $100.

Question 16

If product price decreases,then:

Accepted Answer

A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease. 
A)  MP will increase. 
B)  MFC will increase. 
C)  MRP will increase. 
D)  MP will decrease.

Question 17

Suppose a change in technology increases the marginal product of labor.The result is a(n):

Accepted Answer

A)  downward movement along the demand for labor curve. 
B)  rightward shift in the demand for labor curve. 
C)  leftward shift in the demand for labor curve. 
D)  upward movement along the demand for labor curve. 
A)  downward movement along the demand for labor curve. 
B)  rightward shift in the demand for labor curve. 
C)  leftward shift in the demand for labor curve. 
D)  upward movement along the demand for labor curve.

Question 18

Describe the factors that could cause an increase in the wage rate of workers.

Accepted Answer

Anything that increases the demand or re

Question 19

Which of the following statements is true?

Accepted Answer

A)  Derived demand for labor depends on the demand for the product labor produces. 
B)  Unions can either increase demand or decrease the supply of labor. 
C)  Investment in human capital is expected to increase the demand for those workers. 
D)  All of the above. 
A)  Derived demand for labor depends on the demand for the product labor produces. 
B)  Unions can either increase demand or decrease the supply of labor. 
C)  Investment in human capital is expected to increase the demand for those workers. 
D)  All of the above.

Question 20

A firm's demand curve for labor coincides with the:

Accepted Answer

A)  marginal cost curve. 
B)  average cost curve. 
C)  marginal revenue curve. 
D)  marginal revenue product curve. 
A)  marginal cost curve. 
B)  average cost curve. 
C)  marginal revenue curve. 
D)  marginal revenue product curve.

Exam 10: Labor Markets and Income Distribution

Other things equal,assume consumer demand for children's toys increases.The result is a(n):

When determining whether a family's income is below the official poverty rate,non-cash benefits from the government,such as food stamps,housing and medical benefits,are also included.

The marginal revenue product can be written as:

An individual firm in a competitive labor market faces a(n):

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

What happens to the MP of labor when the market price of the good produced increases?

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

Which of the following program(s)examples is (are)in-kind assistance to fight poverty in the United States?

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

If product price increases,then:

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

Featherbedding allows unions to increase wages by:

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

Exhibit 10-3 Supply and demand curves for food servers -In Exhibit 10-3,assume that both input and output markets are perfectly competitive.If one additional server increases the number of meals sold by four per day and each meal sells for $10,each additional food servers will be paid:

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $5,the MRP of the 4th worker is equal to:

If product price decreases,then:

Suppose a change in technology increases the marginal product of labor.The result is a(n):

Describe the factors that could cause an increase in the wage rate of workers.

Which of the following statements is true?

A firm's demand curve for labor coincides with 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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