Question 1

Because of illegal immigrants,the equilibrium wage rate of unskilled labor falls.

Accepted Answer

A) True 
 B)False

Question 2

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3   
-Refer to Figure 15.3.If the wage rates in market A and market B were set at $15,then:

Accepted Answer

A) there would be a shortage of workers in both markets. 
B) there would be a surplus of workers in both markets. 
C) there would be a shortage of workers in market A and a surplus of workers in market B. 
D) there would be a shortage of workers in market B and a surplus of workers in market A. 
E) the market as a whole would be in equilibrium. 
A) there would be a shortage of workers in both markets. 
B) there would be a surplus of workers in both markets. 
C) there would be a shortage of workers in market A and a surplus of workers in market B. 
D) there would be a shortage of workers in market B and a surplus of workers in market A. 
E) the market as a whole would be in equilibrium.

Question 3

When people are separated into different jobs on the basis of sex,it is referred to as:

Accepted Answer

A) statistical discrimination. 
B) employer prejudice. 
C) worker prejudice. 
D) occupational segregation. 
E) occupational crowding. 
A) statistical discrimination. 
B) employer prejudice. 
C) worker prejudice. 
D) occupational segregation. 
E) occupational crowding.

Question 4

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4   In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-According to Figure 15.4,the price and quantity of the good if produced by U.S.would be _____ and _____ respectively.

Accepted Answer

A) P1; Q1 
B) P3; Q3 
C) P2; Q4  
D) P2; Q2 
E) P4; Q4 
A) P1; Q1 
B) P3; Q3 
C) P2; Q4  
D) P2; Q2 
E) P4; Q4

Question 5

The concept of comparable worth:

Accepted Answer

A) is that pay ought to be determined by job characteristics rather than by supply and demand. 
B) is that pay ought to be determined by supply and demand rather than by job characteristics. 
C) has made hiring practices much simpler for employers. 
D) asserts that market-determined wages are the only appropriate way in which to allocate pay. 
E) is easy to implement once a new worker has been hired. 
A) is that pay ought to be determined by job characteristics rather than by supply and demand. 
B) is that pay ought to be determined by supply and demand rather than by job characteristics. 
C) has made hiring practices much simpler for employers. 
D) asserts that market-determined wages are the only appropriate way in which to allocate pay. 
E) is easy to implement once a new worker has been hired.

Question 6

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

Accepted Answer

A) True 
 B)False

Question 7

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4   In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-In Figure 15.4,the price and quantity of the good if produced by India would be _____ and _____ respectively.

Accepted Answer

A) P3; Q3 
B) P4; Q4 
C) P1; Q1 
D) P5; Q5 
E) P2; Q2 
A) P3; Q3 
B) P4; Q4 
C) P1; Q1 
D) P5; Q5 
E) P2; Q2

Question 8

A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers.

Accepted Answer

A) True 
 B)False

Question 9

It has been proved empirically that marriage and children lowers a woman's ability to earn as much as a man.

Accepted Answer

A) True 
 B)False

Question 10

It is said that a wage increase can have two opposing effects.Which of the following captures these two effects?

Accepted Answer

A) A backward-bending labor-supply curve 
B) A perfectly elastic labor-supply curve 
C) A perfectly inelastic labor-supply curve 
D) The inability of average wage earners to comprehend the complexities of economic principles. 
E) A backward-bending labor-demand curve 
A) A backward-bending labor-supply curve 
B) A perfectly elastic labor-supply curve 
C) A perfectly inelastic labor-supply curve 
D) The inability of average wage earners to comprehend the complexities of economic principles. 
E) A backward-bending labor-demand curve

Question 11

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
-The Market A described in Figure 15.5 is a(n):

Accepted Answer

A) monopsonist market. 
B) monopolistic market. 
C) perfectly competitive labor market. 
D) monopolistically competitive market. 
E) oligopolistic market. 
A) monopsonist market. 
B) monopolistic market. 
C) perfectly competitive labor market. 
D) monopolistically competitive market. 
E) oligopolistic market.

Question 12

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
-The Market B described in Figure 15.5 is a(n):

Accepted Answer

A) perfectly competitive labor market. 
B) monopolist market. 
C) oligopolistic market. 
D) monoposonistic market. 
E) monopolistically competitive market. 
A) perfectly competitive labor market. 
B) monopolist market. 
C) oligopolistic market. 
D) monoposonistic market. 
E) monopolistically competitive market.

Question 13

If employers have imperfect information about job applicants,it may be rational for them to use:

Accepted Answer

A) employer prejudice. 
B) worker prejudice. 
C) consumer prejudice. 
D) statistical discrimination. 
E) occupational segregation. 
A) employer prejudice. 
B) worker prejudice. 
C) consumer prejudice. 
D) statistical discrimination. 
E) occupational segregation.

Question 14

The term compensating wage differential refers to:

Accepted Answer

A) the bargaining capacity of a monoposonist in the labor market. 
B) wage differences that arise from differences in the risk involved in different jobs 
C) whether or not a firm offers a 401K plan to all its employees or just some employees. 
D) wage differences that arise from difference in productivity of the workers in a firm. 
E) the negotiating powers of the trade union. 
A) the bargaining capacity of a monoposonist in the labor market. 
B) wage differences that arise from differences in the risk involved in different jobs 
C) whether or not a firm offers a 401K plan to all its employees or just some employees. 
D) wage differences that arise from difference in productivity of the workers in a firm. 
E) the negotiating powers of the trade union.

Question 15

If an employer is a monopsonist,the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

Accepted Answer

A) True 
 B)False

Question 16

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  
- Refer to Figure 15.2.At the initial equilibrium (when demand is D1 and supply is S1),the wage rate and labor employment are:

Accepted Answer

A) $7 and 20 laborers. 
B) $8 and 30 laborers. 
C) $6 and 50 laborers. 
D) $5 and 20 laborers. 
E) $5 and 10 laborers. 
A) $7 and 20 laborers. 
B) $8 and 30 laborers. 
C) $6 and 50 laborers. 
D) $5 and 20 laborers. 
E) $5 and 10 laborers.

Question 17

The following figures show the demand (D) and supply (S) curves of micro and macro economists. Figure 15.7  
- In Figure 15.7,assume that the wage rates of the micro and the macro economists are determined by the aggregate demand and supply curves.The levels of employment for micro- and macro economists are _____ and _____ respectively:

Accepted Answer

A) 100; 40. 
B) 100; 50. 
C) 90; 50. 
D) 110; 60 
A) 100; 40. 
B) 100; 50. 
C) 90; 50. 
D) 110; 60

Question 18

The principal argument against comparable worth is that the demand and supply of labor in the labor market allocates workers to where they are needed the most.

Accepted Answer

A) True 
 B)False

Question 19

If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers,we can expect:

Accepted Answer

A) wages of skilled workers to be equal to wages of unskilled workers. 
B) wages of skilled workers to be lower than wages of unskilled workers. 
C) wages of skilled workers to be higher than wages of unskilled workers. 
D) wages to fall from current levels for unskilled workers. 
E) wages of both skilled and unskilled workers to remain unaffected. 
A) wages of skilled workers to be equal to wages of unskilled workers. 
B) wages of skilled workers to be lower than wages of unskilled workers. 
C) wages of skilled workers to be higher than wages of unskilled workers. 
D) wages to fall from current levels for unskilled workers. 
E) wages of both skilled and unskilled workers to remain unaffected.

Question 20

The greater the opportunity cost of any particular occupation,the smaller the number of people who will select that occupation.

Accepted Answer

A) True 
 B)False

Because of illegal immigrants,the equilibrium wage rate of unskilled labor falls.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3 -Refer to Figure 15.3.If the wage rates in market A and market B were set at $15,then:

When people are separated into different jobs on the basis of sex,it is referred to as:

The concept of comparable worth:

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers.

It has been proved empirically that marriage and children lowers a woman's ability to earn as much as a man.

It is said that a wage increase can have two opposing effects.Which of the following captures these two effects?

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 -The Market A described in Figure 15.5 is a(n):

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 -The Market B described in Figure 15.5 is a(n):

If employers have imperfect information about job applicants,it may be rational for them to use:

The term compensating wage differential refers to:

If an employer is a monopsonist,the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

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 - Refer to Figure 15.2.At the initial equilibrium (when demand is D₁and supply is S₁),the wage rate and labor employment are:

The principal argument against comparable worth is that the demand and supply of labor in the labor market allocates workers to where they are needed the most.

If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers,we can expect:

The greater the opportunity cost of any particular occupation,the smaller the number of people who will select that occupation.

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

Exam 15: The Labor Market

Because of illegal immigrants,the equilibrium wage rate of unskilled labor falls.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3 -Refer to Figure 15.3.If the wage rates in market A and market B were set at $15,then:

When people are separated into different jobs on the basis of sex,it is referred to as:

The concept of comparable worth:

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers.

It has been proved empirically that marriage and children lowers a woman's ability to earn as much as a man.

It is said that a wage increase can have two opposing effects.Which of the following captures these two effects?

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 -The Market A described in Figure 15.5 is a(n):

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 -The Market B described in Figure 15.5 is a(n):

If employers have imperfect information about job applicants,it may be rational for them to use:

The term compensating wage differential refers to:

If an employer is a monopsonist,the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

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 - Refer to Figure 15.2.At the initial equilibrium (when demand is D1 and supply is S1),the wage rate and labor employment are:

The principal argument against comparable worth is that the demand and supply of labor in the labor market allocates workers to where they are needed the most.

If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers,we can expect:

The greater the opportunity cost of any particular occupation,the smaller the number of people who will select that occupation.

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 - Refer to Figure 15.2.At the initial equilibrium (when demand is D₁and supply is S₁),the wage rate and labor employment are: