Question 1

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-​Offshoring refers to the the process in which:

Accepted Answer

A) ​a firm hires laborers from a foreign market. 
B) ​a firm purchases service from another firm. 
C) ​a firm purchases service from another firm in another country. 
D) ​​workers of a particular country seek employment in a firm of a foreign country. 
E) ​the government of a country works toward providing social security and other rights to migrant workers. 
A) ​a firm hires laborers from a foreign market. 
B) ​a firm purchases service from another firm. 
C) ​a firm purchases service from another firm in another country. 
D) ​​workers of a particular country seek employment in a firm of a foreign country. 
E) ​the government of a country works toward providing social security and other rights to migrant workers.

Question 2

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-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 3

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-The ratio of the median income of college-to high school-educated workers is called the _____.

Accepted Answer

A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap 
A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap

Question 4

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.
-Reliance on indicators of productivity such as education, experience, and test scores may keep some very good people from getting a job and may result in hiring unproductive people. This is called:

Accepted Answer

A) worker prejudice. 
B) statistical discrimination. 
C) crowding out. 
D) disparate treatment. 
E) comparable worth. 
A) worker prejudice. 
B) statistical discrimination. 
C) crowding out. 
D) disparate treatment. 
E) comparable worth.

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.
-Disparate treatment refers to:

Accepted Answer

A) the treatment of individuals on the basis of their race, sex, color, religion, or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions. 
A) the treatment of individuals on the basis of their race, sex, color, religion, or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions.

Question 6

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.
-With illegal immigration the unskilled labor supply curve:

Accepted Answer

A) shifts to the left. 
B) becomes perfectly inelastic. 
C) becomes perfectly elastic. 
D) shifts to the right. 
E) becomes non-existent. 
A) shifts to the left. 
B) becomes perfectly inelastic. 
C) becomes perfectly elastic. 
D) shifts to the right. 
E) becomes non-existent.

Question 7

The figure below shows the supply curve for labor.Figure 16.1
  
-The labor demand curve is based on the firm's:

Accepted Answer

A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curve. 
D) average cost curve. 
E) marginal revenue product curve. 
A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curve. 
D) average cost curve. 
E) marginal revenue product curve.

Question 8

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

Question 9

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.
-In Figure 16.4, 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 10

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-An example of human capital is the purchase of a computer to help accountants.

Accepted Answer

A) True 
 B)False

Question 11

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-Outsourcing refers to the process in which:​

Accepted Answer

A) a firm purchases service from another firm in another country. 
B) a firm hires laborers from a foreign market. 
C) ​the government of a country works toward providing social security and other rights to migrant workers. 
D) ​a firm purchases service from another firm. 
E) ​ workers of a particular country seek employment in a firm of a foreign country. 
A) a firm purchases service from another firm in another country. 
B) a firm hires laborers from a foreign market. 
C) ​the government of a country works toward providing social security and other rights to migrant workers. 
D) ​a firm purchases service from another firm. 
E) ​ workers of a particular country seek employment in a firm of a foreign country.

Question 12

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-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 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.
-According to Figure 16.4, the price and quantity of the good if produced by the 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 14

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-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 15

The figure given below shows the demand curves (DS1U1B11S1U1B0 and DS1U1B12S1U1B0) and supply curves (SS1U1B11S1U1B0 and SS1U1B12S1U1B0) of labor in the labor market.Figure: 16.2
  
-Which of the following professionals is likely to receive higher compensatory wages?

Accepted Answer

A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors 
A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors

Question 16

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 statements best defines the economics of the so-called superstar effect in the labor market?

Accepted Answer

A) This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. 
B) This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. 
C) This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product. 
D) This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. 
E) This effect usually occurs in industries in which a labor union has far-reaching powers. 
A) This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. 
B) This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. 
C) This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product. 
D) This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. 
E) This effect usually occurs in industries in which a labor union has far-reaching powers.

Question 17

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.
-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 18

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Accepted Answer

A) True 
 B)False

Question 19

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
  
-Border enforcement if effective would raise the number of illegal immigrants into the United States.

Accepted Answer

A) True 
 B)False

Question 20

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3
  
-Which of the following statements is true?

Accepted Answer

A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree always earns more than a worker without a college degree. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time. 
A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree always earns more than a worker without a college degree. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Offshoring refers to the the process in which:

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -The ratio of the median income of college-to high school-educated workers is called 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. -Disparate treatment refers to:

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. -With illegal immigration the unskilled labor supply curve:

The figure below shows the supply curve for labor.Figure 16.1 -The labor demand curve is based on the firm's:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -The greater the opportunity cost of any particular occupation, the smaller the number of people who will select that occupation.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -An example of human capital is the purchase of a computer to help accountants.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Outsourcing refers to the process in which:

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

The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market.Figure: 16.2 -Which of the following professionals is likely to receive higher compensatory wages?

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. -The concept of comparable worth:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -It is often profitable for the white-males to accept lower paying positions to avoid working with women.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Border enforcement if effective would raise the number of illegal immigrants into the United States.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Which of the following statements is true?

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 figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -​Offshoring refers to the the process in which:

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -The ratio of the median income of college-to high school-educated workers is called 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. -Disparate treatment refers to:

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. -With illegal immigration the unskilled labor supply curve:

The figure below shows the supply curve for labor.Figure 16.1 -The labor demand curve is based on the firm's:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -The greater the opportunity cost of any particular occupation, the smaller the number of people who will select that occupation.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -An example of human capital is the purchase of a computer to help accountants.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Outsourcing refers to the process in which:​

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

The figure given below shows the demand curves (D1 and D2) and supply curves (S1 and S2) of labor in the labor market.Figure: 16.2 -Which of the following professionals is likely to receive higher compensatory wages?

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. -The concept of comparable worth:

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -It is often profitable for the white-males to accept lower paying positions to avoid working with women.

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6 -Border enforcement if effective would raise the number of illegal immigrants into the United States.

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Which of the following statements is true?

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 figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Offshoring refers to the the process in which:

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. -Disparate treatment refers to:

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. -With illegal immigration the unskilled labor supply curve:

The figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3 -Outsourcing refers to the process in which:

The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market.Figure: 16.2 -Which of the following professionals is likely to receive higher compensatory wages?

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. -The concept of comparable worth: