Question 1

The Civil Rights Act of 1964 in the United States led to _____.

Accepted Answer

A) the introduction of the concept of discrimination. 
B) complete elimination discrimination from the labor force. 
C) creation of equal opportunities for men and women. 
D) creation of equal opportunities for the members of different races. 
E) establishment of a much clearer definition of discrimination. 
A) the introduction of the concept of discrimination. 
B) complete elimination discrimination from the labor force. 
C) creation of equal opportunities for men and women. 
D) creation of equal opportunities for the members of different races. 
E) establishment of a much clearer definition of discrimination.

Question 2

Which of the following statements contradicts the upward-sloping market-supply curve?`

Accepted Answer

A) All people have backward-bending individual supply curves 
B) Leisure is more enjoyable than work 
C) The elasticity of labor supply is larger than the elasticity of labor demand. 
D) More work means less leisure 
E) The opportunity cost of leisure decreases with an increase in wage rate. 
A) All people have backward-bending individual supply curves 
B) Leisure is more enjoyable than work 
C) The elasticity of labor supply is larger than the elasticity of labor demand. 
D) More work means less leisure 
E) The opportunity cost of leisure decreases with an increase in wage rate.

Question 3

Which of the following is an instance of employer prejudice that leads to wage differential?

Accepted Answer

A) Employers attempting to hire workers based on their marginal productivities 
B) Employers attempting to hire only good looking female workers 
C) Workers attempting to work for only certain particular organizations 
D) Producers purchasing raw materials from selective suppliers 
E) Workers ready to work for any employer in the labor market 
A) Employers attempting to hire workers based on their marginal productivities 
B) Employers attempting to hire only good looking female workers 
C) Workers attempting to work for only certain particular organizations 
D) Producers purchasing raw materials from selective suppliers 
E) Workers ready to work for any employer in the labor market

Question 4

The wage gap between males and females is decreasing,and will be finally eradicated because the average male in the labor force has equal marketable human capital as the average female.

Accepted Answer

A) True 
 B)False

Question 5

When women and members of other minority groups are forced into occupations where they are unable to obtain the human capital necessary to compete for high paying jobs,it is termed as statistical discrimination.

Accepted Answer

A) True 
 B)False

Question 6

The figure given below shows the demand curves (DS1U1B11S1U1B0 and DS1U1B12S1U1B0) and supply curves (SS1U1B11S1U1B0 and SS1U1B12S1U1B0) of labor in the labor market. Figure: 15.2  
- In Figure 15.2,the initial labor supply is S1 ,and the labor demand is D1.If the wage is $6,which of the following is correct?

Accepted Answer

A) The actual wage is above the equilibrium wage. 
B) There is a shortage of 30 workers. 
C) There is a shortage of 20 workers. 
D) There is a shortage of 10 workers. 
E) The market is in equilibrium. 
A) The actual wage is above the equilibrium wage. 
B) There is a shortage of 30 workers. 
C) There is a shortage of 20 workers. 
D) There is a shortage of 10 workers. 
E) The market is in equilibrium.

Question 7

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3   
-Which of the following is a reason for the wage differential shown in Figure 15.3?

Accepted Answer

A) The workers in Market B are more productive than the workers in Market A. 
B) The workers in Market B are unionized whereas the workers in Market A are not. 
C) Market B hires a larger number of skilled workers than Market A. 
D) Market A represents the market for a risky occupation. 
E) Working conditions offered by the firms in Market B are uncongenial. 
A) The workers in Market B are more productive than the workers in Market A. 
B) The workers in Market B are unionized whereas the workers in Market A are not. 
C) Market B hires a larger number of skilled workers than Market A. 
D) Market A represents the market for a risky occupation. 
E) Working conditions offered by the firms in Market B are uncongenial.

Question 8

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5   In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
-In Figure 15.5,the equilibrium wage rate and the level of employment in Market A are _____ and _____ respectively.

Accepted Answer

A) $8; 15 hours. 
B) $10; 10 hours. 
C) $10; 20 hours. 
D) $12; 25 hours. 
E) $6; 20 hours. 
A) $8; 15 hours. 
B) $10; 10 hours. 
C) $10; 20 hours. 
D) $12; 25 hours. 
E) $6; 20 hours.

Question 9

From an economist's viewpoint,discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups.

Accepted Answer

A) True 
 B)False

Question 10

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Accepted Answer

A) True 
 B)False

Question 11

Border enforcement if effective would raise the number of illegal immigrants into the United States.

Accepted Answer

A) True 
 B)False

Question 12

Minimum wage legislation by the government would:

Accepted Answer

A) create labor shortage. 
B) create labor surplus. 
C) not affect the labor market. 
D) benefit the firms. 
E) increase income inequality in the country. 
A) create labor shortage. 
B) create labor surplus. 
C) not affect the labor market. 
D) benefit the firms. 
E) increase income inequality in the country.

Question 13

Which of the following statements best defines the economics of the so-called superstar effect in the labor market?

Accepted Answer

A) This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. 
B) This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. 
C) This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product. 
D) This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. 
E) This effect usually occurs in industries in which a labor union has far-reaching powers. 
A) This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. 
B) This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. 
C) This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product. 
D) This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. 
E) This effect usually occurs in industries in which a labor union has far-reaching powers.

Question 14

The labor market is in equilibrium when:

Accepted Answer

A) the demand curve lies above the supply curve. 
B) both demand and supply curves are positively sloped. 
C) both demand and supply curves are negatively sloped. 
D) the demand curve intersects the supply curve. 
E) the demand curve is negatively sloped but the supply curve is positively sloped. 
A) the demand curve lies above the supply curve. 
B) both demand and supply curves are positively sloped. 
C) both demand and supply curves are negatively sloped. 
D) the demand curve intersects the supply curve. 
E) the demand curve is negatively sloped but the supply curve is positively sloped.

Question 15

An increase in the income tax rates:

Accepted Answer

A) makes the labor supply curve more inelastic. 
B) increases the opportunity cost of leisure. 
C) lowers the opportunity cost of leisure. 
D) shifts the labor supply curve to the right. 
E) shifts the labor demand curve to the right. 
A) makes the labor supply curve more inelastic. 
B) increases the opportunity cost of leisure. 
C) lowers the opportunity cost of leisure. 
D) shifts the labor supply curve to the right. 
E) shifts the labor demand curve to the right.

Question 16

Which of the following is not a cost of illegal immigration in the U.S.?

Accepted Answer

A) The adverse impact on unskilled workers 
B) The damage to national property caused during the process of immigration 
C) Additional expenditure on healthcare at emergency clinics and hospitals 
D) Expenditure on public education on the children of immigrants. 
E) Expenditure on employment insurance programs for the illegal immigrants. 
A) The adverse impact on unskilled workers 
B) The damage to national property caused during the process of immigration 
C) Additional expenditure on healthcare at emergency clinics and hospitals 
D) Expenditure on public education on the children of immigrants. 
E) Expenditure on employment insurance programs for the illegal immigrants.

Question 17

As the wage rate increases,the quantity supplied of labor in a market will:

Accepted Answer

A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant. 
A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant.

Question 18

Which of the following best explains the shape of the individual labor-supply curve?

Accepted Answer

A) The individual labor-supply curve is exactly like any supply curve,it always has a positive slope. 
B) The individual labor-supply curve slopes downward at all wage rates because,as wages increase,people are able to buy more leisure. 
C) The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. 
D) The individual labor-supply curve must be vertical because each person can work only eight hours per day. 
E) The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive. 
A) The individual labor-supply curve is exactly like any supply curve,it always has a positive slope. 
B) The individual labor-supply curve slopes downward at all wage rates because,as wages increase,people are able to buy more leisure. 
C) The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. 
D) The individual labor-supply curve must be vertical because each person can work only eight hours per day. 
E) The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.

Question 19

People tend to remain in those occupations that require continuous time and financial commitments to remain productive.

Accepted Answer

A) True 
 B)False

Question 20

Proponents of comparable worth justifies it on the ground that:

Accepted Answer

A) interfering with the functioning of the labor market will lead to shortages of labor. 
B) interfering with the functioning of the labor market will lead to excess supplies of labor. 
C) as a result of personal prejudices the market is unable to assess marginal products. 
D) market correctly processes the innumerable information which are available. 
E) interaction of demand and supply correctly determines the wage rate. 
A) interfering with the functioning of the labor market will lead to shortages of labor. 
B) interfering with the functioning of the labor market will lead to excess supplies of labor. 
C) as a result of personal prejudices the market is unable to assess marginal products. 
D) market correctly processes the innumerable information which are available. 
E) interaction of demand and supply correctly determines the wage rate.

Exam 15: The Labor Market

The Civil Rights Act of 1964 in the United States led to _____.

Which of the following statements contradicts the upward-sloping market-supply curve?`

Which of the following is an instance of employer prejudice that leads to wage differential?

The wage gap between males and females is decreasing,and will be finally eradicated because the average male in the labor force has equal marketable human capital as the average female.

When women and members of other minority groups are forced into occupations where they are unable to obtain the human capital necessary to compete for high paying jobs,it is termed as statistical discrimination.

The figure given below shows the demand curves (D1 and D2) and supply curves (S1 and S2) of labor in the labor market. Figure: 15.2 - In Figure 15.2,the initial labor supply is S1 ,and the labor demand is D1.If the wage is $6,which of the following is correct?

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3 -Which of the following is a reason for the wage differential shown in Figure 15.3?

From an economist's viewpoint,discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups.

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Border enforcement if effective would raise the number of illegal immigrants into the United States.

Minimum wage legislation by the government would:

Which of the following statements best defines the economics of the so-called superstar effect in the labor market?

The labor market is in equilibrium when:

An increase in the income tax rates:

Which of the following is not a cost of illegal immigration in the U.S.?

As the wage rate increases,the quantity supplied of labor in a market will:

Which of the following best explains the shape of the individual labor-supply curve?

People tend to remain in those occupations that require continuous time and financial commitments to remain productive.

Proponents of comparable worth justifies it on the ground that:

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market. Figure: 15.2 - In Figure 15.2,the initial labor supply is S₁,and the labor demand is D₁.If the wage is $6,which of the following is correct?