Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number df } \\ \text { wurkers } \end{array} & \begin{array} { c } \text { Caftee } \\ \text { (cups/hour) } \end{array} \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 45 \\ \hline 3 & 60 \\ \hline 4 & 70 \\ \hline 5 & 75 \\ \hline \end{array}\] The most the coffee shop would be willing pay the third worker is ________ per hour.

A) $60.00 B) $45.00 C) $22.50 D) $15.00 A) $60.00 B) $45.00 C) $22.50 D) $15.00 C

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number df } \\ \text { wurkers } \end{array} & \begin{array} { c } \text { Caftee } \\ \text { (cups/hour) } \end{array} \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 45 \\ \hline 3 & 60 \\ \hline 4 & 70 \\ \hline 5 & 75 \\ \hline \end{array}\] The marginal product of the fourth worker is ________ cups of coffee per hour.

A) 70 B) 60 C) 17.5 D) 10 A) 70 B) 60 C) 17.5 D) 10 D

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number df } \\ \text { wurkers } \end{array} & \begin{array} { c } \text { Caftee } \\ \text { (cups/hour) } \end{array} \\ \hline 0 & 0 \\ \hline 1 & 25 \\ \hline 2 & 45 \\ \hline 3 & 60 \\ \hline 4 & 70 \\ \hline 5 & 75 \\ \hline \end{array}\] The value of marginal product of the first worker is ________ per hour.

A) $37.50 B) $25.00 C) $2.00 D) $1.50 A) $37.50 B) $25.00 C) $2.00 D) $1.50

Suppose the Fluffy Pillow Company produces pillows. The number of pillows it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each pillow can be sold for $2 more than the cost of the materials needed to produce it. \[\begin{array} { | c | c | } \hline \text { Number af warkers per haur } & \text { Number of pillavs per hour } \\ \hline 0 & 0 \\ \hline 1 & 24 \\ \hline 2 & 42 \\ \hline 3 & 54 \\ \hline 4 & 60 \\ \hline 5 & 61 \\ \hline \end{array}\] If the hourly wage for people who make pillows is $10, then how many workers should the Fluffy Pillow Company hire each hour?

A) 1 B) 2 C) 3 D) 4 A) 1 B) 2 C) 3 D) 4

Exam 13: Labor Markets, Poverty, and Income Distribution

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. Number df wurkers Caftee (cups/hour) 0 0 1 25 2 45 3 60 4 70 5 75 The most the coffee shop would be willing pay the third worker is ________ per hour.

Free

(Multiple Choice)

4.7/5

(80)

Question 1

Correct Answer:

Verified

Balanced across the board, U.S. income growth characterizes the period of the:

Free

(Multiple Choice)

4.8/5

(78)

Question 2

Correct Answer:

Verified

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. Number df wurkers Caftee (cups/hour) 0 0 1 25 2 45 3 60 4 70 5 75 The marginal product of the fourth worker is ________ cups of coffee per hour.

Free

(Multiple Choice)

4.9/5

(72)

Question 3

Correct Answer:

Verified

Ben and Ashley are identical in every way except for one: Ashley has a master's degree and Ben does not. You would expect Ashley to be paid:

(Multiple Choice)

5.0/5

(71)

Question 4

The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:

(Multiple Choice)

4.9/5

(76)

Question 5

Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:

(Multiple Choice)

4.9/5

(81)

Question 6

The value of marginal product of labor equals the

(Multiple Choice)

4.8/5

(85)

Question 7

The value of a worker's marginal product of labor:

(Multiple Choice)

4.9/5

(69)

Question 8

Suppose males place less importance on the social approval of their job and more on the income they receive. The gender wage gap would therefore be than if this difference did not exist because of .

(Multiple Choice)

5.0/5

(69)

Question 9

Consider the accompanying figure representing the labor markets shown below. If the government imposes a minimum wage above $6 per hour, then total earnings will ________.

(Multiple Choice)

4.9/5

(80)

Question 10

When the government transfers resources to the poor in the form of a good or service, it is called:

(Multiple Choice)

4.8/5

(82)

Question 11

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. Number df wurkers Caftee (cups/hour) 0 0 1 25 2 45 3 60 4 70 5 75 The value of marginal product of the first worker is ________ per hour.

(Multiple Choice)

4.9/5

(78)

Question 12

Jen is offered a job answering the phone in the State U economics department during lunchtime, from noon to 1 p.m., Tuesdays and Thursdays. Her reservation wage for this job is $15 per hour. If the department chair offers Jen $150 per week, how much economic surplus will she enjoy as a result of accepting the job?

(Multiple Choice)

5.0/5

(69)

Question 13

Assume that this graph illustrates a perfectly competitive labor market. Equilibrium in this labor market is at a wage of per hour and an employment level of person-hours per day.

(Multiple Choice)

4.8/5

(68)

Question 14

Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year with summers off, working forty hours a week at a bank in a small city, and working more than sixty hours a week for a high-powered investment firm in New York. Suppose all of the jobs currently offer exactly the same annual salary, and that most people prefer leisure to work, all else equal. In order to attract workers, the would have to offer a salary than the others.

(Multiple Choice)

4.9/5

(87)

Question 15

The marginal product of the 14ᵗʰ worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14ᵗʰ worker's marginal product is

(Multiple Choice)

4.9/5

(80)

Question 16

Suppose the Fluffy Pillow Company produces pillows. The number of pillows it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each pillow can be sold for $2 more than the cost of the materials needed to produce it. Number af warkers per haur Number of pillavs per hour 0 0 1 24 2 42 3 54 4 60 5 61 If the hourly wage for people who make pillows is $10, then how many workers should the Fluffy Pillow Company hire each hour?

(Multiple Choice)

4.9/5

(66)

Question 17

Assume that this graph illustrates a perfectly competitive labor market. Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:

(Multiple Choice)

4.9/5

(77)

Question 18

Consider the accompanying figure representing the labor market below. Suppose the government passes a minimum wage requiring employers to pay at least $8.00 per hour. Prior to the imposition of the minimum wage, employer surplus is per day, and after the imposition of the minimum wage, employer surplus is per day.

(Multiple Choice)

4.9/5

(78)

Question 19

Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week. Chris's behavior illustrates the ________ effect of a wage increase.

(Multiple Choice)

4.8/5

(88)

Question 20

Showing 1 - 20 of 138

Balanced across the board, U.S. income growth characterizes the period of the:

Ben and Ashley are identical in every way except for one: Ashley has a master's degree and Ben does not. You would expect Ashley to be paid:

The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:

Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:

The value of marginal product of labor equals the

The value of a worker's marginal product of labor:

Suppose males place less importance on the social approval of their job and more on the income they receive. The gender wage gap would therefore be than if this difference did not exist because of .

Consider the accompanying figure representing the labor markets shown below. If the government imposes a minimum wage above $6 per hour, then total earnings will ________.

When the government transfers resources to the poor in the form of a good or service, it is called:

Assume that this graph illustrates a perfectly competitive labor market. Equilibrium in this labor market is at a wage of per hour and an employment level of person-hours per day.

The marginal product of the 14ᵗʰ worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14ᵗʰ worker's marginal product is

Assume that this graph illustrates a perfectly competitive labor market. Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

Exam 13: Labor Markets, Poverty, and Income Distribution

Balanced across the board, U.S. income growth characterizes the period of the:

Ben and Ashley are identical in every way except for one: Ashley has a master's degree and Ben does not. You would expect Ashley to be paid:

The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:

The value of marginal product of labor equals the

The value of a worker's marginal product of labor:

Suppose males place less importance on the social approval of their job and more on the income they receive. The gender wage gap would therefore be ________ than if this difference did not exist because of ________.

Consider the accompanying figure representing the labor markets shown below. If the government imposes a minimum wage above $6 per hour, then total earnings will ________.

When the government transfers resources to the poor in the form of a good or service, it is called:

Assume that this graph illustrates a perfectly competitive labor market. Equilibrium in this labor market is at a wage of ________ per hour and an employment level of ________ person-hours per day.

The marginal product of the 14ᵗʰ worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14ᵗʰ worker's marginal product is

Assume that this graph illustrates a perfectly competitive labor market. Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

Suppose males place less importance on the social approval of their job and more on the income they receive. The gender wage gap would therefore be than if this difference did not exist because of .

Assume that this graph illustrates a perfectly competitive labor market. Equilibrium in this labor market is at a wage of per hour and an employment level of person-hours per day.