Question 1

Which of the following is most likely to incorporate a great deal of economic rent?

Accepted Answer

A)  sale of a bag of potato chips 
B)  salary paid to an employee at the local Home Depot 
C)  a soft drink sold by a vending machine 
D)  sale of a rare stamp 
A)  sale of a bag of potato chips 
B)  salary paid to an employee at the local Home Depot 
C)  a soft drink sold by a vending machine 
D)  sale of a rare stamp

Question 2

An increase in the price of a firm's output will shift the firm's demand curve for labor to the right,other things being equal.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following will contribute to higher wage rates for labor?

Accepted Answer

A)  increased productivity 
B)  increases in capital formation 
C)  a decrease in the supply of labor 
D)  all of the above 
A)  increased productivity 
B)  increases in capital formation 
C)  a decrease in the supply of labor 
D)  all of the above

Question 4

Increases in income from other sources than employment can cause the labor ____ curve to shift ____.

Accepted Answer

A)  demand; right. 
B)  demand; left. 
C)  supply; right. 
D)  supply; left. 
A)  demand; right. 
B)  demand; left. 
C)  supply; right. 
D)  supply; left.

Question 5

Exhibit 16-3   Refer to Exhibit 16-3.Which of the following situations is relevant to Case B?

Accepted Answer

A)  New workers enter the labor force 
B)  Increases in income from other sources than employment 
C)  Improvements in amenities associated with a job or location 
D)  People become willing to work more hours at a given wage 
A)  New workers enter the labor force 
B)  Increases in income from other sources than employment 
C)  Improvements in amenities associated with a job or location 
D)  People become willing to work more hours at a given wage

Question 6

Exhibit 16-3   Refer to Exhibit 16-3.Which of the following situations is relevant to Case A?

Accepted Answer

A)  Increases in income from other sources than employment 
B)  Deteriorating job amenities 
C)  People become willing to work fewer hours at a given wage 
D)  New workers enter the labor force 
A)  Increases in income from other sources than employment 
B)  Deteriorating job amenities 
C)  People become willing to work fewer hours at a given wage 
D)  New workers enter the labor force

Question 7

Other things being equal,if the quantity of labor supplied is less than the quantity of labor demanded,wages will tend to fall.

Accepted Answer

A) True 
 B)False

Question 8

In Japan,the market value of the land is approximately four times that of all the land in the United States,even though Japan is only about the size of California.The most likely explanation for this fact is?

Accepted Answer

There is a greater d

Question 9

Other things being equal,a ____ supply of workers tends to ____ real wages.

Accepted Answer

A)  larger; decrease 
B)  smaller; decrease 
C)  larger; increase 
D)  smaller; not change 
A)  larger; decrease 
B)  smaller; decrease 
C)  larger; increase 
D)  smaller; not change

Question 10

Improvements in the productivity of labor will tend to:

Accepted Answer

A)  increase the supply of labor. 
B)  increase the demand for labor. 
C)  decrease the supply of labor. 
D)  decrease the demand for labor. 
A)  increase the supply of labor. 
B)  increase the demand for labor. 
C)  decrease the supply of labor. 
D)  decrease the demand for labor.

Question 11

If labor is the only variable input,an additional worker increases output from 72 to 78 units,and the product price is $6,the marginal revenue product from an additional worker:

Accepted Answer

A)  is $6. 
B)  is $36. 
C)  is $78 
D)  is $432. 
A)  is $6. 
B)  is $36. 
C)  is $78 
D)  is $432.

Question 12

When a profit-maximizing firm makes a decision to employ a worker,that decision is based on:

Accepted Answer

A)  the individual contribution that the worker makes to the profit of the firm. 
B)  the average productivity of the firm's labor force. 
C)  the familial relationship between the employer and the employee. 
D)  the total output produced by the firm. 
A)  the individual contribution that the worker makes to the profit of the firm. 
B)  the average productivity of the firm's labor force. 
C)  the familial relationship between the employer and the employee. 
D)  the total output produced by the firm.

Question 13

Labor unions

Accepted Answer

A)  are formed to increase members' wages and improve working conditions. 
B)  have represented a declining share of the workforce in the past 50 years. 
C)  have traditionally found it difficult to organize workers in white-collar jobs. 
D)  are characterized by all of the above. 
A)  are formed to increase members' wages and improve working conditions. 
B)  have represented a declining share of the workforce in the past 50 years. 
C)  have traditionally found it difficult to organize workers in white-collar jobs. 
D)  are characterized by all of the above.

Question 14

The demand for labor of a perfectly competitive producer:

Accepted Answer

A)  is perfectly elastic at the going wage rate. 
B)  is downward sloping because prices fall when the producer increases output. 
C)  is downward sloping because of diminishing marginal productivity. 
D)  is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity. 
A)  is perfectly elastic at the going wage rate. 
B)  is downward sloping because prices fall when the producer increases output. 
C)  is downward sloping because of diminishing marginal productivity. 
D)  is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity.

Question 15

In the last 60 years,the percentage of workers in union jobs has increased substantially.

Accepted Answer

A) True 
 B)False

Question 16

Even though non-union workers maybe just as skilled as union workers,wages are almost 15 percent higher in union jobs.Why?

Accepted Answer

When unions become successful in obtaini

Question 17

At a higher wage rate:

Accepted Answer

A)  the opportunity cost of working increases. 
B)  the opportunity cost of leisure increases. 
C)  the opportunity cost of working decreases. 
D)  the opportunity cost of leisure decreases. 
A)  the opportunity cost of working increases. 
B)  the opportunity cost of leisure increases. 
C)  the opportunity cost of working decreases. 
D)  the opportunity cost of leisure decreases.

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

Which of the following is most likely to incorporate a great deal of economic rent?

An increase in the price of a firm's output will shift the firm's demand curve for labor to the right,other things being equal.

Which of the following will contribute to higher wage rates for labor?

Increases in income from other sources than employment can cause the labor ____ curve to shift ____.

Exhibit 16-3 Refer to Exhibit 16-3.Which of the following situations is relevant to Case B?

Exhibit 16-3 Refer to Exhibit 16-3.Which of the following situations is relevant to Case A?

Other things being equal,if the quantity of labor supplied is less than the quantity of labor demanded,wages will tend to fall.

In Japan,the market value of the land is approximately four times that of all the land in the United States,even though Japan is only about the size of California.The most likely explanation for this fact is?

Other things being equal,a ____ supply of workers tends to ____ real wages.

Improvements in the productivity of labor will tend to:

If labor is the only variable input,an additional worker increases output from 72 to 78 units,and the product price is $6,the marginal revenue product from an additional worker:

When a profit-maximizing firm makes a decision to employ a worker,that decision is based on:

Labor unions

The demand for labor of a perfectly competitive producer:

In the last 60 years,the percentage of workers in union jobs has increased substantially.

Even though non-union workers maybe just as skilled as union workers,wages are almost 15 percent higher in union jobs.Why?

At a higher wage rate:

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

Filters

Increases in income from other sources than employment can cause the labor curve to shift .

Other things being equal,a supply of workers tends to real wages.