Question 1

In labour economics,the term 'customer discrimination' refers to a situation where customers are charged different prices for services rendered by a firm.

Accepted Answer

A) True 
 B)False

Question 2

If the demand for labour is unchanged,an increase in the supply of labour will lead to

Accepted Answer

A)  a decrease in the quantity of labour demanded and a decrease in the equilibrium wage. 
B)  an increase in the quantity of labour demanded and a decrease in the equilibrium wage. 
C)  an increase in the quantity of labour demanded and an increase in the equilibrium wage. 
D)  a decrease in the quantity of labour demanded and an increase in the equilibrium wage. 
A)  a decrease in the quantity of labour demanded and a decrease in the equilibrium wage. 
B)  an increase in the quantity of labour demanded and a decrease in the equilibrium wage. 
C)  an increase in the quantity of labour demanded and an increase in the equilibrium wage. 
D)  a decrease in the quantity of labour demanded and an increase in the equilibrium wage.

Question 3

The total amount of copper in the earth is not increasing.Does this mean that in the market for copper,the supply curve is perfectly inelastic? Explain.

Accepted Answer

The supply of copper is the quantity fir

Question 4

A monopsony restricts the quantity of a factor demanded to force down the price of the factor and increase profits.

Accepted Answer

A) True 
 B)False

Question 5

Figure 10-1   Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies.
-Refer to Figure 10-1.If the wage rate is $40,how many workers should Dale hire?

Accepted Answer

A)  6 labour units 
B)  5 labour units 
C)  4 labour units 
D)  3 labour units 
A)  6 labour units 
B)  5 labour units 
C)  4 labour units 
D)  3 labour units

Question 6

How will an increase in population affect the labour market?

Accepted Answer

A)  It will shift the market supply curve. 
B)  It will cause a decrease in the quantity of labour demanded. 
C)  It will increase the supply of jobs. 
D)  It will increase the opportunity cost of leisure. 
A)  It will shift the market supply curve. 
B)  It will cause a decrease in the quantity of labour demanded. 
C)  It will increase the supply of jobs. 
D)  It will increase the opportunity cost of leisure.

Question 7

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Accepted Answer

The equilibrium wage will fall

Question 8

Consider the market for nurses in a given city.In each of the following cases,explain what happens to the equilibrium wage rate and the quantity of nurses hired.
a.One of the major hospitals in the city closes.
b.A record number of students graduate with bachelor's degrees in nursing.
c.Traditionally,nursing is a field that attracts women.However,changes in access to education and to the labour force participation rate by women have led to a greater demand for the services of women in a wide range of occupations.The demand for nurses,however,does not change.
d.Advances in medical technology reduce the amount of time physicians must spend with patients in intensive care and increase the time that nurses spend with patients.

Accepted Answer

a.The demand curve shifts to the left.Th

Question 9

Table 10-2
  
-Refer to Table 10-2.The firm represented in the table

Accepted Answer

A)  has market power in the factor market. 
B)  has market power in the output market. 
C)  has market power in both the factor and product market. 
D)  has no market power in the factor or product market. 
A)  has market power in the factor market. 
B)  has market power in the output market. 
C)  has market power in both the factor and product market. 
D)  has no market power in the factor or product market.

Question 10

a.What are the two effects of an increase in the wage rate on an individual's labour supply decision? Briefly explain each effect.
b.Explain how a labour supply curve could be backward bending.

Accepted Answer

a.There are two effects of a wage rate i

Question 11

An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity supplied of labour.

Accepted Answer

A) True 
 B)False

Question 12

Consider the market for opticians.What is likely to happen to the equilibrium wage and quantity of opticians if more and more people turn to laser eye surgery instead of wearing glasses or contact lens?

Accepted Answer

A)  The equilibrium wage and the equilibrium quantity of opticians rise. 
B)  The equilibrium wage and the equilibrium quantity of opticians fall. 
C)  The equilibrium wage rises and the equilibrium quantity of opticians falls. 
D)  The equilibrium wage falls and the equilibrium quantity of opticians rises. 
A)  The equilibrium wage and the equilibrium quantity of opticians rise. 
B)  The equilibrium wage and the equilibrium quantity of opticians fall. 
C)  The equilibrium wage rises and the equilibrium quantity of opticians falls. 
D)  The equilibrium wage falls and the equilibrium quantity of opticians rises.

Question 13

When workers are paid on a piece-rate basis,an employer must be able to easily measure each worker's output.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labour market?

Accepted Answer

A)  Employers who discriminate are likely to do so in covert ways such as awarding some workers with benefits-in-kind. 
B)  Ultimately, employers who discriminate cannot remain profitable. 
C)  Employers who discriminate pay an economic penalty. 
D)  Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. 
A)  Employers who discriminate are likely to do so in covert ways such as awarding some workers with benefits-in-kind. 
B)  Ultimately, employers who discriminate cannot remain profitable. 
C)  Employers who discriminate pay an economic penalty. 
D)  Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences.

Question 15

An individual's labour supply curve shows

Accepted Answer

A)  the maximum wage rates offered to that individual by various potential employers. 
B)  the relationship between wages and the quantity of labour that she is willing to supply. 
C)  the relationship between wages and the quantity of labour that a firm is willing to employ. 
D)  the relationship between the quantity of hours worked and total income earned by that individual. 
A)  the maximum wage rates offered to that individual by various potential employers. 
B)  the relationship between wages and the quantity of labour that she is willing to supply. 
C)  the relationship between wages and the quantity of labour that a firm is willing to employ. 
D)  the relationship between the quantity of hours worked and total income earned by that individual.

Question 16

Suppose the following two events occur in the domestic market for radiologists: 
a.Some hospitals are outsourcing some radiology services such as reading x-rays.
b.Some medical schools have closed down their radiology departments as fewer students enrol in this field.
What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?

Accepted Answer

A)  The equilibrium wage and the equilibrium quantity of radiologists rise. 
B)  The equilibrium wage and the equilibrium quantity of radiologists fall. 
C)  The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate. 
D)  The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate. 
A)  The equilibrium wage and the equilibrium quantity of radiologists rise. 
B)  The equilibrium wage and the equilibrium quantity of radiologists fall. 
C)  The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate. 
D)  The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate.

Question 17

How much is a bond that pays $50 in coupon payments for 3 years and $1000 at the end of the third year worth if the interest rate is 10%?

Accepted Answer

A)  $876 
B)  $952 
C)  $1045 
D)  $1150 
A)  $876 
B)  $952 
C)  $1045 
D)  $1150

Question 18

An increase in the price of grape juice causes an increase in the marginal revenue product of labour used to produce grape juice.

Accepted Answer

A) True 
 B)False

Question 19

Figure 10-3  
-Refer to Figure 10-3.In Panel A,at low wages (segment i)

Accepted Answer

A)  the substitution effect outweighs the income effect. 
B)  the income effect outweighs the substitution effect. 
C)  the substitution effect offsets the income effect. 
D)  labour suppliers demand more leisure as wages increase. 
A)  the substitution effect outweighs the income effect. 
B)  the income effect outweighs the substitution effect. 
C)  the substitution effect offsets the income effect. 
D)  labour suppliers demand more leisure as wages increase.

Question 20

Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender

Accepted Answer

A)  is economic discrimination. 
B)  violates anti-discrimination laws. 
C)  can be explained by negative feedback loops. 
D)  creates differences in wages that economists call 'compensating differentials.' 
A)  is economic discrimination. 
B)  violates anti-discrimination laws. 
C)  can be explained by negative feedback loops. 
D)  creates differences in wages that economists call 'compensating differentials.'

In labour economics,the term 'customer discrimination' refers to a situation where customers are charged different prices for services rendered by a firm.

If the demand for labour is unchanged,an increase in the supply of labour will lead to

The total amount of copper in the earth is not increasing.Does this mean that in the market for copper,the supply curve is perfectly inelastic? Explain.

A monopsony restricts the quantity of a factor demanded to force down the price of the factor and increase profits.

Figure 10-1 Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 10-1.If the wage rate is $40,how many workers should Dale hire?

How will an increase in population affect the labour market?

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Table 10-2 -Refer to Table 10-2.The firm represented in the table

a.What are the two effects of an increase in the wage rate on an individual's labour supply decision? Briefly explain each effect. b.Explain how a labour supply curve could be backward bending.

An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity supplied of labour.

Consider the market for opticians.What is likely to happen to the equilibrium wage and quantity of opticians if more and more people turn to laser eye surgery instead of wearing glasses or contact lens?

When workers are paid on a piece-rate basis,an employer must be able to easily measure each worker's output.

Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labour market?

An individual's labour supply curve shows

How much is a bond that pays $50 in coupon payments for 3 years and $1000 at the end of the third year worth if the interest rate is 10%?

An increase in the price of grape juice causes an increase in the marginal revenue product of labour used to produce grape juice.

Figure 10-3 -Refer to Figure 10-3.In Panel A,at low wages (segment i)

Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

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Exam 10: Monopoly and Antitrust

In labour economics,the term 'customer discrimination' refers to a situation where customers are charged different prices for services rendered by a firm.

If the demand for labour is unchanged,an increase in the supply of labour will lead to

The total amount of copper in the earth is not increasing.Does this mean that in the market for copper,the supply curve is perfectly inelastic? Explain.

A monopsony restricts the quantity of a factor demanded to force down the price of the factor and increase profits.

Figure 10-1 Figure 10-1 shows the marginal revenue product for Dale's Hand-Sewn Doilies, a producer of linen doilies. -Refer to Figure 10-1.If the wage rate is $40,how many workers should Dale hire?

How will an increase in population affect the labour market?

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Table 10-2 -Refer to Table 10-2.The firm represented in the table

a.What are the two effects of an increase in the wage rate on an individual's labour supply decision? Briefly explain each effect. b.Explain how a labour supply curve could be backward bending.

An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity supplied of labour.

Consider the market for opticians.What is likely to happen to the equilibrium wage and quantity of opticians if more and more people turn to laser eye surgery instead of wearing glasses or contact lens?

When workers are paid on a piece-rate basis,an employer must be able to easily measure each worker's output.

Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labour market?

An individual's labour supply curve shows

How much is a bond that pays $50 in coupon payments for 3 years and $1000 at the end of the third year worth if the interest rate is 10%?

An increase in the price of grape juice causes an increase in the marginal revenue product of labour used to produce grape juice.

Figure 10-3 -Refer to Figure 10-3.In Panel A,at low wages (segment i)

Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters