Question 1

Which of the following is not part of an argument that unions lead to increased productivity?

Accepted Answer

A)  reduction in worker turnover 
B)  improved morale 
C)  employees with more motivation 
D)  benefits from featherbedding 
A)  reduction in worker turnover 
B)  improved morale 
C)  employees with more motivation 
D)  benefits from featherbedding

Question 2

Which of the following would cause the demand for carpenters to increase?

Accepted Answer

A)  a decrease in immigration 
B)  an increase in the demand for housing 
C)  an increase in the price of lumber 
D)  a decrease in the productivity of carpenters 
A)  a decrease in immigration 
B)  an increase in the demand for housing 
C)  an increase in the price of lumber 
D)  a decrease in the productivity of carpenters

Question 3

Which of the following will result in a leftward shift of the market supply curve for labor?

Accepted Answer

A)  an increase in immigration 
B)  a decrease in labor productivity 
C)  an increase in the working-age population 
D)  an increase in nonwage income 
A)  an increase in immigration 
B)  a decrease in labor productivity 
C)  an increase in the working-age population 
D)  an increase in nonwage income

Question 4

The concept of derived demand indicated that the demand for a final good or service will be determined by the price of the inputs used to produce that final good or service.

Accepted Answer

A) True 
 B)False

Question 5

The marginal resource cost is the amount by which an additional unit of input decreases the firm's variable costs.

Accepted Answer

A) True 
 B)False

Question 6

The quantity of funds supplied by lenders is:

Accepted Answer

A)  directly related to the rate of interest. 
B)  inversely related to the rate of interest. 
C)  unrelated to the rate of interest. 
D)  first increases and then decreases with the rate of interest. 
A)  directly related to the rate of interest. 
B)  inversely related to the rate of interest. 
C)  unrelated to the rate of interest. 
D)  first increases and then decreases with the rate of interest.

Question 7

The major reason the market demand curve for labor slopes downward is because:

Accepted Answer

A)  at lower wage rates, workers are less willing to supply labor to the market. 
B)  at lower wage rates, workers are more willing to supply labor to the market. 
C)  of the law of diminishing marginal product. 
D)  of the law of diminishing marginal resource cost. 
A)  at lower wage rates, workers are less willing to supply labor to the market. 
B)  at lower wage rates, workers are more willing to supply labor to the market. 
C)  of the law of diminishing marginal product. 
D)  of the law of diminishing marginal resource cost.

Question 8

An increase in the interest rate will:

Accepted Answer

A)  increase the amount of money supplied by lenders. 
B)  decrease the amount of money supplied by lenders. 
C)  have no effect on the amount of money supplied by lenders. 
D)  have an ambiguous effect on the amount of money supplied by lenders. 
A)  increase the amount of money supplied by lenders. 
B)  decrease the amount of money supplied by lenders. 
C)  have no effect on the amount of money supplied by lenders. 
D)  have an ambiguous effect on the amount of money supplied by lenders.

Question 9

Based on the table below,how many workers will the firm employ in order to maximize profits?

Accepted Answer

A)  14 
B)  15 
C)  16 
D)  17 
A)  14 
B)  15 
C)  16 
D)  17

Question 10

A backward-bending portion of an individual labor supply curve is most likely to be observed:

Accepted Answer

A)  at lower wages. 
B)  at higher wages. 
C)  in manufacturing industries. 
D)  in service industries. 
A)  at lower wages. 
B)  at higher wages. 
C)  in manufacturing industries. 
D)  in service industries.

Question 11

If the private-sector wage of biologists was significantly greater than that of music professors,what might happen if a university tried to pay its entire faculty the same salary?

Accepted Answer

Those individuals,who are able to comman

Question 12

In the backward-bending portion of a labor supply curve:

Accepted Answer

A)  a worker will increase the quantity of labor supplied in response to an increase in the wage. 
B)  the substitution effect of a wage change outweighs the income effect. 
C)  the income effect of a wage change outweighs the substitution effect. 
D)  the substitution effect of a wage change equals the income effect. 
A)  a worker will increase the quantity of labor supplied in response to an increase in the wage. 
B)  the substitution effect of a wage change outweighs the income effect. 
C)  the income effect of a wage change outweighs the substitution effect. 
D)  the substitution effect of a wage change equals the income effect.

Question 13

Interest is the payment for the use of:

Accepted Answer

A)  borrowed funds. 
B)  natural resources. 
C)  labor. 
D)  any factor of production. 
A)  borrowed funds. 
B)  natural resources. 
C)  labor. 
D)  any factor of production.

Question 14

Which of the following would shift the supply of labor to the right?

Accepted Answer

A)  A decrease in population. 
B)  A decrease in immigration. 
C)  A decrease in non-wage income. 
D)  A decrease in the quality of on-the-job amenities. 
A)  A decrease in population. 
B)  A decrease in immigration. 
C)  A decrease in non-wage income. 
D)  A decrease in the quality of on-the-job amenities.

Question 15

The demand for labor is derived from the demand for final goods which that labor is used to produce.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following will not contribute to higher wage rates for labor?

Accepted Answer

A)  increased unionization and decreased nonunionization of employees in the economy 
B)  a rapid increase in the demand for labor 
C)  significantly relaxed immigration standards 
D)  increases in technological advances that are substitutes for labor 
A)  increased unionization and decreased nonunionization of employees in the economy 
B)  a rapid increase in the demand for labor 
C)  significantly relaxed immigration standards 
D)  increases in technological advances that are substitutes for labor

Question 17

The firm represented in the table below participates in a perfectly competitive market for their product as well as for labor.Complete the chart and answer the following questions.
a.If the firm represented in the table above is currently employing two units of labor,should they hire a third? Why or why not?
b.If the firm represented in the table above is currently employing four units of labor,should they hire a fifth? Why or why not?
c.If the firm represented in the table above is currently employing seven units of labor,should they hire an eighth? Why or why not?
d.At what level of employment will the firm be maximizing profit? If they hire one additional unit of labor,what will be the cost?

Accepted Answer

@#IMG-DLM& @#IMG-DLM& a.If the firm is currently employing t

Question 18

The profit-maximizing firm should lay off workers when:

Accepted Answer

A)  MRC  MRP. 
C)  MRC = MRP. 
D)  the MP of labor begins to diminish. 
A)  MRC  MRP. 
C)  MRC = MRP. 
D)  the MP of labor begins to diminish.

Question 19

The income effect of a wage increase:

Accepted Answer

A)  results in an increase in the quantity of labor supplied. 
B)  results in a decrease in the quantity of labor supplied. 
C)  has no impact on the quantity of labor supplied. 
D)  results in a decrease in the quantity of leisure enjoyed. 
A)  results in an increase in the quantity of labor supplied. 
B)  results in a decrease in the quantity of labor supplied. 
C)  has no impact on the quantity of labor supplied. 
D)  results in a decrease in the quantity of leisure enjoyed.

Question 20

In many communities across the country it is very difficult for firms to hire sufficient numbers of entry level workers.If firms do not wish to raise money wages,what else might they do to attract workers?

Accepted Answer

Firms could enhance the amenit

Exam 16: The Markets for Labor, Capital, and Land

Which of the following is not part of an argument that unions lead to increased productivity?

Which of the following would cause the demand for carpenters to increase?

Which of the following will result in a leftward shift of the market supply curve for labor?

The concept of derived demand indicated that the demand for a final good or service will be determined by the price of the inputs used to produce that final good or service.

The marginal resource cost is the amount by which an additional unit of input decreases the firm's variable costs.

The quantity of funds supplied by lenders is:

The major reason the market demand curve for labor slopes downward is because:

An increase in the interest rate will:

Based on the table below,how many workers will the firm employ in order to maximize profits?

A backward-bending portion of an individual labor supply curve is most likely to be observed:

If the private-sector wage of biologists was significantly greater than that of music professors,what might happen if a university tried to pay its entire faculty the same salary?

In the backward-bending portion of a labor supply curve:

Interest is the payment for the use of:

Which of the following would shift the supply of labor to the right?

The demand for labor is derived from the demand for final goods which that labor is used to produce.

Which of the following will not contribute to higher wage rates for labor?

The profit-maximizing firm should lay off workers when:

The income effect of a wage increase:

In many communities across the country it is very difficult for firms to hire sufficient numbers of entry level workers.If firms do not wish to raise money wages,what else might they do to attract workers?

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

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