Question 1

A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Accepted Answer

A) True 
 B)False

Question 2

Statistical discrimination is legal under the disparate impact standard but illegal under the treatment standard.

Accepted Answer

A) True 
 B)False

Question 3

In 2001,Alex Rodriguez,a baseball player,was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect.

Accepted Answer

A) True 
 B)False

Question 4

For economists,discrimination is difficult to rationalize because:

Accepted Answer

A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market,there is no such thing as discrimination. 
D) economists know that in the real world,personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate. 
A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market,there is no such thing as discrimination. 
D) economists know that in the real world,personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate.

Question 5

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

Accepted Answer

A) True 
 B)False

Question 6

The figure given below shows the income-leisure trade off of an individual. Figure 15.6   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0,IS1U1B12S1U1B0,and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-In Figure 15.6,if the income constraint of the individual is given by the line AC,he maximizes his utility by choosing _____ hours of leisure and _____ units of income.

Accepted Answer

A) L1; Y5 
B) 0; Y7 
C) L3; Y3 
D) L2; Y3 
E) L4; Y4 
A) L1; Y5 
B) 0; Y7 
C) L3; Y3 
D) L2; Y3 
E) L4; Y4

Question 7

Which of the following is a true statement about leisure?

Accepted Answer

A) When the salary of a low income earner increases,it often becomes possible to increase both labor and leisure. 
B) Standing in line at the bank is not enjoyable and as a result is not considered leisure. 
C) If someone enjoys his or her job,then the time he or she spends at work is considered leisure. 
D) Leisure will always decrease as a person's wage increases. 
E) Leisure includes all hours that a person spends away from a paying job,regardless of how this time is spent. 
A) When the salary of a low income earner increases,it often becomes possible to increase both labor and leisure. 
B) Standing in line at the bank is not enjoyable and as a result is not considered leisure. 
C) If someone enjoys his or her job,then the time he or she spends at work is considered leisure. 
D) Leisure will always decrease as a person's wage increases. 
E) Leisure includes all hours that a person spends away from a paying job,regardless of how this time is spent.

Question 8

Which of the following determines comparable worth of a particular job?

Accepted Answer

A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory 
A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory

Question 9

Suppose a tax rate of 10 percent applies to all income up to $20,000 a year,income above $20,000 up to $50,000 a year is taxed at a rate of 15%,and income above $50,000 a year is taxed at 20%.Calculate the absolute amount of tax paid by a person whose annual income is $30,000.

Accepted Answer

A) $2,000 
B) $2,500 
C) $4,500 
D) $4,000 
E) $3,500 
A) $2,000 
B) $2,500 
C) $4,500 
D) $4,000 
E) $3,500

Question 10

Supporters of comparable worth claim that market correctly allocates the workers in their best paid works.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.government has time and again raised the minimum wage to:

Accepted Answer

A) ensure that the skilled workers make a decent living. 
B) increase the elasticity of labor supply. 
C) earn greater tax revenue. 
D) ensure that the unskilled workers make a decent living. 
E) safeguard the interests of the employers. 
A) ensure that the skilled workers make a decent living. 
B) increase the elasticity of labor supply. 
C) earn greater tax revenue. 
D) ensure that the unskilled workers make a decent living. 
E) safeguard the interests of the employers.

Question 12

Why are a large number of IT jobs being outsourced to China and India?

Accepted Answer

A) India and China experience large balance of payment deficits. 
B) India and China are highly capital intensive economies. 
C) India and China have abundant supply of cheap skilled labor. 
D) India and China have abundant supply of unskilled labor. 
E) India and China are rich in natural resources. 
A) India and China experience large balance of payment deficits. 
B) India and China are highly capital intensive economies. 
C) India and China have abundant supply of cheap skilled labor. 
D) India and China have abundant supply of unskilled labor. 
E) India and China are rich in natural resources.

Question 13

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

Accepted Answer

A) True 
 B)False

Question 14

People leave their home country and go to another country to live primarily because they seek a higher quality of life.

Accepted Answer

A) True 
 B)False

Question 15

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3   
-From Figure 15.3,calculate the amount of the wage differential.

Accepted Answer

A) $6 
B) $18 
C) $2 
D) $20 
E) $15 
A) $6 
B) $18 
C) $2 
D) $20 
E) $15

Question 16

The burden of a tax is mainly borne by the buyer if:

Accepted Answer

A) the supply of the good is perfectly price elastic. 
B) if the supply of the good is relatively price elastic. 
C) if the demand for the good is relatively price elastic. 
D) if the demand for the good is relatively price inelastic. 
E) if the demand for the good is perfectly price elastic. 
A) the supply of the good is perfectly price elastic. 
B) if the supply of the good is relatively price elastic. 
C) if the demand for the good is relatively price elastic. 
D) if the demand for the good is relatively price inelastic. 
E) if the demand for the good is perfectly price elastic.

Question 17

Which of the following is an impact of the restriction on immigration on the domestic firms?

Accepted Answer

A) The domestic firms would produce more and reap greater profits. 
B) The domestic firms would hire more unskilled laborers at lower wages. 
C) The domestic firms would charge low prices for their products. 
D) The domestic firms would have to pay higher wages and make less profit. 
E) The domestic firms would make above normal profits in the long run. 
A) The domestic firms would produce more and reap greater profits. 
B) The domestic firms would hire more unskilled laborers at lower wages. 
C) The domestic firms would charge low prices for their products. 
D) The domestic firms would have to pay higher wages and make less profit. 
E) The domestic firms would make above normal profits in the long run.

A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Statistical discrimination is legal under the disparate impact standard but illegal under the treatment standard.

In 2001,Alex Rodriguez,a baseball player,was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect.

For economists,discrimination is difficult to rationalize because:

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

Which of the following is a true statement about leisure?

Which of the following determines comparable worth of a particular job?

Suppose a tax rate of 10 percent applies to all income up to $20,000 a year,income above $20,000 up to $50,000 a year is taxed at a rate of 15%,and income above $50,000 a year is taxed at 20%.Calculate the absolute amount of tax paid by a person whose annual income is $30,000.

Supporters of comparable worth claim that market correctly allocates the workers in their best paid works.

The U.S.government has time and again raised the minimum wage to:

Why are a large number of IT jobs being outsourced to China and India?

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

People leave their home country and go to another country to live primarily because they seek a higher quality of life.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3 -From Figure 15.3,calculate the amount of the wage differential.

The burden of a tax is mainly borne by the buyer if:

Which of the following is an impact of the restriction on immigration on the domestic firms?

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

A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Statistical discrimination is legal under the disparate impact standard but illegal under the treatment standard.

In 2001,Alex Rodriguez,a baseball player,was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect.

For economists,discrimination is difficult to rationalize because:

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

Which of the following is a true statement about leisure?

Which of the following determines comparable worth of a particular job?

Suppose a tax rate of 10 percent applies to all income up to $20,000 a year,income above $20,000 up to $50,000 a year is taxed at a rate of 15%,and income above $50,000 a year is taxed at 20%.Calculate the absolute amount of tax paid by a person whose annual income is $30,000.

Supporters of comparable worth claim that market correctly allocates the workers in their best paid works.

The U.S.government has time and again raised the minimum wage to:

Why are a large number of IT jobs being outsourced to China and India?

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

People leave their home country and go to another country to live primarily because they seek a higher quality of life.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 15.3 -From Figure 15.3,calculate the amount of the wage differential.

The burden of a tax is mainly borne by the buyer if:

Which of the following is an impact of the restriction on immigration on the domestic firms?

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