Question 1

Since the 1970s,the percentage of total income earned by the poorest 20 percent of American families has fallen.

Accepted Answer

A) True 
 B)False

Question 2

The marginal revenue product curve is:

Accepted Answer

A)  c and d are correct. 
B)  c and e are correct. 
C)  given by the marginal product curve multiplied by the price of the good. 
D)  the marginal contribution of an additional worker to firm's revenues. 
E)  the change in total cost that results from employing an additional worker. 
A)  c and d are correct. 
B)  c and e are correct. 
C)  given by the marginal product curve multiplied by the price of the good. 
D)  the marginal contribution of an additional worker to firm's revenues. 
E)  the change in total cost that results from employing an additional worker.

Question 3

For a competitive firm,workers' marginal revenue product equals the marginal product of labor times the:

Accepted Answer

A)  wage rate. 
B)  price of the firm's product. 
C)  interest rate. 
D)  firm's total revenue. 
A)  wage rate. 
B)  price of the firm's product. 
C)  interest rate. 
D)  firm's total revenue.

Question 4

The number of workers hired by a firm at a particular wage rate can be calculated if you know which of the following?

Accepted Answer

A) c and d. 
B) Product supply curve. 
C) Marginal product of labor. 
D) Marginal factor cost. 
E) Marginal revenue product of labor. 
A) c and d. 
B) Product supply curve. 
C) Marginal product of labor. 
D) Marginal factor cost. 
E) Marginal revenue product of labor.

Question 5

Since 1959 the fraction of persons below the poverty line has fallen.

Accepted Answer

A) True 
 B)False

Question 6

Exhibit 10-5 A perfectly competitive labor market
  
-In Exhibit 10-5,how many thousands of workers are firms willing to hire?

Accepted Answer

A)  20. 
B)  10. 
C)  15. 
D)  All 30 workers. 
A)  20. 
B)  10. 
C)  15. 
D)  All 30 workers.

Question 7

The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:

Accepted Answer

A)  product. 
B)  revenue product. 
C)  cost. 
D)  none of the above. 
A)  product. 
B)  revenue product. 
C)  cost. 
D)  none of the above.

Question 8

An increase in the demand for a product will shift the demand for labor used to produce the product:

Accepted Answer

A)  downward. 
B)  leftward. 
C)  rightward. 
D)  none of the above, the curve will not shift. 
A)  downward. 
B)  leftward. 
C)  rightward. 
D)  none of the above, the curve will not shift.

Question 9

Describe the comparable worth controversy?

Accepted Answer

Although a comparable worth pay system m

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following determines equilibrium wages in perfectly competitive labor markets?

Accepted Answer

A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage. 
A)  The government. 
B)  Monopoly employers. 
C)  Where the supply and demand of labor are equal. 
D)  The requirements of a living wage.

Question 12

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.

Question 13

Tucker Corporation sells its products for $5.00.Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour.Tucker should hire the additional worker only if the wage rate is:

Accepted Answer

A)  $5.00 or less per hour. 
B)  $1.00 or more per hour. 
C)  $25.00 or less per hour. 
D)  none of the above. 
A)  $5.00 or less per hour. 
B)  $1.00 or more per hour. 
C)  $25.00 or less per hour. 
D)  none of the above.

Question 14

According to the statistics,the distribution of money income:

Accepted Answer

A)  fluctuated widely since 1947. 
B)  changed significantly in favor of the bottom 5 percent. 
C)  has not changed greatly since 1947. 
D)  has not changed greatly since 1929. 
A)  fluctuated widely since 1947. 
B)  changed significantly in favor of the bottom 5 percent. 
C)  has not changed greatly since 1947. 
D)  has not changed greatly since 1929.

Question 15

Which of the following countries has the largest union membership measured as the percentage of civilian employees in unions?

Accepted Answer

A)  The United States. 
B)  Japan. 
C)  The United Kingdom. 
D)  Sweden. 
A)  The United States. 
B)  Japan. 
C)  The United Kingdom. 
D)  Sweden.

Question 16

A decrease in the marginal product of labor would be represented by:

Accepted Answer

A)  increase in labor demand. 
B)  decrease in labor demand. 
C)  increase in the quantity demanded of labor. 
D)  decrease in the quantity demanded of labor. 
E)  an increase in wages. 
A)  increase in labor demand. 
B)  decrease in labor demand. 
C)  increase in the quantity demanded of labor. 
D)  decrease in the quantity demanded of labor. 
E)  an increase in wages.

Question 17

If the demand for the finished product increases,the:

Accepted Answer

A)  demand for the resources will increase. 
B)  demand for the resources will decrease. 
C)  marginal factor cost will increase. 
D)  marginal factor cost will decrease. 
E)  MP will increase. 
A)  demand for the resources will increase. 
B)  demand for the resources will decrease. 
C)  marginal factor cost will increase. 
D)  marginal factor cost will decrease. 
E)  MP will increase.

Question 18

Contrary to popular belief,the richest families in the United States became slightly poorer in recent years.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 35 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income. 
A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 35 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income.

Exam 10: Labor Markets and Income Distribution

Since the 1970s,the percentage of total income earned by the poorest 20 percent of American families has fallen.

The marginal revenue product curve is:

For a competitive firm,workers' marginal revenue product equals the marginal product of labor times the:

The number of workers hired by a firm at a particular wage rate can be calculated if you know which of the following?

Since 1959 the fraction of persons below the poverty line has fallen.

Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,how many thousands of workers are firms willing to hire?

The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:

An increase in the demand for a product will shift the demand for labor used to produce the product:

Describe the comparable worth controversy?

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

Which of the following determines equilibrium wages in perfectly competitive labor markets?

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

Tucker Corporation sells its products for $5.00.Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour.Tucker should hire the additional worker only if the wage rate is:

According to the statistics,the distribution of money income:

Which of the following countries has the largest union membership measured as the percentage of civilian employees in unions?

A decrease in the marginal product of labor would be represented by:

If the demand for the finished product increases,the:

Contrary to popular belief,the richest families in the United States became slightly poorer in recent years.

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

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