Question 1

The figure below shows the supply curve for labor.Figure 16.1
  
-As the wage rate increases, the quantity of labor supplied by an individual worker 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 2

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0, IS1U1B12S1U1B0, and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-Which of the following is not a reason for the wage differential between females and males?

Accepted Answer

A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice leads to wage differential between males and females. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours. 
A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice leads to wage differential between males and females. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours.

Question 3

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

Accepted Answer

A) True 
 B)False

Question 4

The figure below shows the supply curve for labor.Figure 16.1
  
-Refer to Figure 16.1. When wage rate increases from W2 to W3, then the:

Accepted Answer

A) quantity of labor supplied increases from Q2 to Q3. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q4. 
E) quantity of labor supplied increases from Q3 to Q5. 
A) quantity of labor supplied increases from Q2 to Q3. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q4. 
E) quantity of labor supplied increases from Q3 to Q5.

Question 5

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0, IS1U1B12S1U1B0, and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-According to the U.S. population surveys conducted by the census, since 1980 the total foreign-born population as a percentage of the total U.S. population:

Accepted Answer

A) has not changed. 
B) has declined. 
C) has risen. 
D) has been stable. 
E) has fallen to zero. 
A) has not changed. 
B) has declined. 
C) has risen. 
D) has been stable. 
E) has fallen to zero.

Question 6

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-In Figure 16.6, 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; 60. 
C) 90; 50. 
D) 100; 50. 
E) 110; 60 
A) 100; 40. 
B) 100; 60. 
C) 90; 50. 
D) 100; 50. 
E) 110; 60

Question 7

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0, IS1U1B12S1U1B0, and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-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 is 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 is available. 
E) interaction of demand and supply correctly determines the wage rate.

Question 8

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-In Figure 16.6, assume that micro and macroeconomists must be paid the same wage because of comparable-worth laws. If the wage rate is $12, then:

Accepted Answer

A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium. 
A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium.

Question 9

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-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 10

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-Refer to Figure 16.3. If the wage rates in market A and market B were set at $20, then:

Accepted Answer

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

Question 11

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-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 12

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Illegal immigrants to the U.S. usually charge higher wages than their American counterparts.

Accepted Answer

A) True 
 B)False

Question 13

The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4
   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.
-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 14

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-An individual is induced to change his/her occupation if:

Accepted Answer

A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income, in the current occupation, increases. 
D) he/she has devoted a lot of money, time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high. 
A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income, in the current occupation, increases. 
D) he/she has devoted a lot of money, time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high.

Question 15

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Since we all like to get richer, so when wage rate increases we always like to work longer hours to make more income.

Accepted Answer

A) True 
 B)False

Question 16

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Offshoring does not affect the percentage of U.S. workers employed in manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Illegal immigrants pay social security tax. Therefore, they receive social security benefits on retirement.

Accepted Answer

A) True 
 B)False

Question 18

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0, IS1U1B12S1U1B0, and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-If the tax rate increases with an increase in income, the income tax structure is said to be _____.

Accepted Answer

A) proportional 
B) regressive 
C) progressive 
D) lump-sum 
E) negatively skewed 
A) proportional 
B) regressive 
C) progressive 
D) lump-sum 
E) negatively skewed

Question 19

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
   AB and AC: Income constraints of the individual
IS1U1B11S1U1B0, IS1U1B12S1U1B0, and IS1U1B13S1U1B0 curves show the income leisure choices of the individual.
-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 20

The figure below shows the supply curve for labor.Figure 16.1
  
-Which of the following statements contradicts an 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) To work more means to enjoy 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) To work more means to enjoy less leisure. 
E) The opportunity cost of leisure decreases with an increase in wage rate.

The figure below shows the supply curve for labor.Figure 16.1 -As the wage rate increases, the quantity of labor supplied by an individual worker will:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

The figure below shows the supply curve for labor.Figure 16.1 -Refer to Figure 16.1. When wage rate increases from W₂ to W₃, then the:

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. -Proponents of comparable worth justifies it on the ground that:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -In Figure 16.6, assume that micro and macroeconomists must be paid the same wage because of comparable-worth laws. If the wage rate is $12, then:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Refer to Figure 16.3. If the wage rates in market A and market B were set at $20, then:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -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.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Illegal immigrants to the U.S. usually charge higher wages than their American counterparts.

The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4 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. -An increase in the income tax rates:

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -An individual is induced to change his/her occupation if:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Since we all like to get richer, so when wage rate increases we always like to work longer hours to make more income.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Offshoring does not affect the percentage of U.S. workers employed in manufacturing.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Illegal immigrants pay social security tax. Therefore, they receive social security benefits on retirement.

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. -Which of the following is not a cost of illegal immigration in the U.S.?

The figure below shows the supply curve for labor.Figure 16.1 -Which of the following statements contradicts an upward-sloping market-supply curve?`

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

Markets and the Price System

The Aggregate Economy

Using Economics to Understand the World Around You

Elasticity: Demand and Supply

Demand: Consumer Choice

Supply: the Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Markets and Government

Antitrust and Regulation

Resource Markets

The Capital Market

The Land Market and Natural Resources

Current Issues: Income, Income Distribution, Poverty, and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

Exam 16: The Labor Market

The figure below shows the supply curve for labor.Figure 16.1 -As the wage rate increases, the quantity of labor supplied by an individual worker will:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

The figure below shows the supply curve for labor.Figure 16.1 -Refer to Figure 16.1. When wage rate increases from W2 to W3, then the:

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I1, I2, and I3 curves show the income leisure choices of the individual. -Proponents of comparable worth justifies it on the ground that:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -In Figure 16.6, assume that micro and macroeconomists must be paid the same wage because of comparable-worth laws. If the wage rate is $12, then:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Refer to Figure 16.3. If the wage rates in market A and market B were set at $20, then:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -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.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Illegal immigrants to the U.S. usually charge higher wages than their American counterparts.

The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4 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. -An increase in the income tax rates:

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -An individual is induced to change his/her occupation if:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Since we all like to get richer, so when wage rate increases we always like to work longer hours to make more income.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Offshoring does not affect the percentage of U.S. workers employed in manufacturing.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Illegal immigrants pay social security tax. Therefore, they receive social security benefits on retirement.

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I1, I2, and I3 curves show the income leisure choices of the individual. -Which of the following is not a cost of illegal immigration in the U.S.?

The figure below shows the supply curve for labor.Figure 16.1 -Which of the following statements contradicts an upward-sloping market-supply curve?`

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

Markets and the Price System

The Aggregate Economy

Using Economics to Understand the World Around You

Elasticity: Demand and Supply

Demand: Consumer Choice

Supply: the Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Markets and Government

Antitrust and Regulation

Resource Markets

The Capital Market

The Land Market and Natural Resources

Current Issues: Income, Income Distribution, Poverty, and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

The figure below shows the supply curve for labor.Figure 16.1 -Refer to Figure 16.1. When wage rate increases from W₂ to W₃, then the:

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. -Proponents of comparable worth justifies it on the ground that:

The figure given below shows the income-leisure trade off of an individual.Figure 16.5 AB and AC: Income constraints of the individual I₁, I₂, and I₃ curves show the income leisure choices of the individual. -Which of the following is not a cost of illegal immigration in the U.S.?