Question 1

What is the marginal productivity theory of income distribution?

Accepted Answer

The marginal productivity theory of inco

Question 2

The signalling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

Accepted Answer

A) True 
 B)False

Question 3

All else being equal,if job turnover has people leaving jobs and finding new jobs in the same industry,this will

Accepted Answer

A)  increase the demand for labour and the supply of labour. 
B)  increase the demand for labour and decrease the supply of labour. 
C)  decrease the supply of labour, but not change the demand for labour. 
D)  not change demand or supply in the labour market. 
A)  increase the demand for labour and the supply of labour. 
B)  increase the demand for labour and decrease the supply of labour. 
C)  decrease the supply of labour, but not change the demand for labour. 
D)  not change demand or supply in the labour market.

Question 4

Compared to a competitive market,a firm that has a monopsony in a labour market would

Accepted Answer

A)  hire fewer workers and pay higher wages. 
B)  hire more workers and pay lower wages. 
C)  hire fewer workers and pay lower wages. 
D)  hire more workers and pay higher wages. 
A)  hire fewer workers and pay higher wages. 
B)  hire more workers and pay lower wages. 
C)  hire fewer workers and pay lower wages. 
D)  hire more workers and pay higher wages.

Question 5

Economic discrimination takes place when an employer

Accepted Answer

A)  pays workers the lowest wage possible. 
B)  pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. 
C)  pays lower wages to workers who are not as productive as other workers. 
D)  pays workers compensating wage differentials. 
A)  pays workers the lowest wage possible. 
B)  pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. 
C)  pays lower wages to workers who are not as productive as other workers. 
D)  pays workers compensating wage differentials.

Question 6

Increases in population shift the market supply curve for labour to the right.

Accepted Answer

A) True 
 B)False

Question 7

Marginal revenue product of labour for a competitive seller is

Accepted Answer

A)  the change in total product from hiring one more worker. 
B)  equal to the marginal product of labour multiplied by the output price. 
C)  the output price multiplied by the quantity sold. 
D)  the marginal revenue of the product multiplied by the output price. 
A)  the change in total product from hiring one more worker. 
B)  equal to the marginal product of labour multiplied by the output price. 
C)  the output price multiplied by the quantity sold. 
D)  the marginal revenue of the product multiplied by the output price.

Question 8

Wage differentials between occupations can be explained by all of the following except

Accepted Answer

A)  the fact that some occupations require higher levels of human capital than others. 
B)  the fact that some occupations are more desirable than others. 
C)  the market power of different employers. 
D)  the relative differences between demand and supply in various occupations. 
A)  the fact that some occupations require higher levels of human capital than others. 
B)  the fact that some occupations are more desirable than others. 
C)  the market power of different employers. 
D)  the relative differences between demand and supply in various occupations.

Question 9

Mel's House of Cars is an automobile dealership that sells both new and used cars.Two other dealerships located nearer Mel's pay their salespeople a straight salary-they receive no commission for each car they sell.Mel has decided to pay all of his salespeople a commission on all car sales.Which of the following is most likely to occur as a result of Mel's decision?

Accepted Answer

A)  Mel will have difficulty finding salespeople. Research by labour economists has found that most employees prefer the security of a salary to the uncertainty of being paid based on how much revenue they generate for their employers. 
B)  Mel will experience a principal-agent problem. Some of his salespeople will tend to shirk because they will not be paid if they sell no cars, regardless of how hard they work. 
C)  Mel will be able to hire some of the most productive salespeople who work for the other two dealerships. 
D)  Mel risks violation of federal law that regulates firms' compensation policies. 
A)  Mel will have difficulty finding salespeople. Research by labour economists has found that most employees prefer the security of a salary to the uncertainty of being paid based on how much revenue they generate for their employers. 
B)  Mel will experience a principal-agent problem. Some of his salespeople will tend to shirk because they will not be paid if they sell no cars, regardless of how hard they work. 
C)  Mel will be able to hire some of the most productive salespeople who work for the other two dealerships. 
D)  Mel risks violation of federal law that regulates firms' compensation policies.

Question 10

The income effect of a wage increase is observed when

Accepted Answer

A)  the higher wage income causes workers to take more leisure and work less. 
B)  leisure's higher opportunity cost causes workers to take less leisure and work more. 
C)  the higher wage income causes workers to take less leisure and work more. 
D)  leisure's higher opportunity cost causes workers to take more leisure and work less. 
A)  the higher wage income causes workers to take more leisure and work less. 
B)  leisure's higher opportunity cost causes workers to take less leisure and work more. 
C)  the higher wage income causes workers to take less leisure and work more. 
D)  leisure's higher opportunity cost causes workers to take more leisure and work less.

Question 11

Which of the following economists is best known for exploring the application of economic analysis to human resources issues?

Accepted Answer

A)  Edward Lazear 
B)  Claudia Goldin 
C)  David Hammermesh 
D)  Alan Krueger 
A)  Edward Lazear 
B)  Claudia Goldin 
C)  David Hammermesh 
D)  Alan Krueger

Question 12

Table 10-4
   Table 10-4 lists data for the production of Apple iPods. Apple is assumed to be a price maker, so to increase its sales of iPods the firm must lower its price. MPL and MRPL refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 10-4.What are the price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods?

Accepted Answer

A)  $180; 1 
B)  $140; 2 
C)  $120; 2 
D)  $120; 4 
A)  $180; 1 
B)  $140; 2 
C)  $120; 2 
D)  $120; 4

Question 13

Table 10-2
  
-Refer to Table 10-2.The marginal revenue product of labour from the third unit of labour is

Accepted Answer

A)  $5460. 
B)  $1560. 
C)  $1260. 
D)  $780. 
A)  $5460. 
B)  $1560. 
C)  $1260. 
D)  $780.

Question 14

Figure 10-2   Figure 10-2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets.
-Refer to Figure 10-2.If Becca can sell her bracelets at $3 each,what is the marginal product of the 4th worker?

Accepted Answer

A)  $36 
B)  12 bracelets 
C)  36 bracelets 
D)  $144 
A)  $36 
B)  12 bracelets 
C)  36 bracelets 
D)  $144

Question 15

The demand curve for labour is also

Accepted Answer

A)  the demand curve for the output produced with labour since the demand for labour is a derived demand. 
B)  the marginal product of labour curve. 
C)  the marginal revenue product of labour curve. 
D)  the supply curve for the output labour is used to produce. 
A)  the demand curve for the output produced with labour since the demand for labour is a derived demand. 
B)  the marginal product of labour curve. 
C)  the marginal revenue product of labour curve. 
D)  the supply curve for the output labour is used to produce.

Question 16

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

Accepted Answer

A)  closed shop. 
B)  guild. 
C)  labour union. 
D)  monopsony. 
A)  closed shop. 
B)  guild. 
C)  labour union. 
D)  monopsony.

Question 17

Table 10-4
   Table 10-4 lists data for the production of Apple iPods. Apple is assumed to be a price maker, so to increase its sales of iPods the firm must lower its price. MPL and MRPL refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 10-4.What are the price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods?

Accepted Answer

A)  $140; 2 
B)  $160; 2 
C)  $140; 3 
D)  $180; 1 
A)  $140; 2 
B)  $160; 2 
C)  $140; 3 
D)  $180; 1

Question 18

If a stock's dividend is expected to grow at a constant rate of 8 per cent in the future and it has just paid a dividend of $1.25 a share,and you have an alternative investment of equal risk that will earn a 12 per cent rate of return,what would you be willing to pay per share for this stock?

Accepted Answer

A)  $31.25 
B)  $1.40 
C)  $1.25 
D)  $1.12 
A)  $31.25 
B)  $1.40 
C)  $1.25 
D)  $1.12

Question 19

Differences in marginal revenue products are the most important factor in explaining wage differences.Other factors that explain wage differences include all but one of the following.Which factor does not help explain differences in wages?

Accepted Answer

A)  Cognitive differentials 
B)  Compensating differentials 
C)  Discrimination 
D)  Labour unions 
A)  Cognitive differentials 
B)  Compensating differentials 
C)  Discrimination 
D)  Labour unions

Question 20

The supply curve of a uniquely talented actor or superstar athlete will be perfectly inelastic.

Accepted Answer

A) True 
 B)False

What is the marginal productivity theory of income distribution?

The signalling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

All else being equal,if job turnover has people leaving jobs and finding new jobs in the same industry,this will

Compared to a competitive market,a firm that has a monopsony in a labour market would

Economic discrimination takes place when an employer

Increases in population shift the market supply curve for labour to the right.

Marginal revenue product of labour for a competitive seller is

Wage differentials between occupations can be explained by all of the following except

The income effect of a wage increase is observed when

Which of the following economists is best known for exploring the application of economic analysis to human resources issues?

Table 10-2 -Refer to Table 10-2.The marginal revenue product of labour from the third unit of labour is

Figure 10-2 Figure 10-2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets. -Refer to Figure 10-2.If Becca can sell her bracelets at $3 each,what is the marginal product of the 4th worker?

The demand curve for labour is also

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

If a stock's dividend is expected to grow at a constant rate of 8 per cent in the future and it has just paid a dividend of $1.25 a share,and you have an alternative investment of equal risk that will earn a 12 per cent rate of return,what would you be willing to pay per share for this stock?

Differences in marginal revenue products are the most important factor in explaining wage differences.Other factors that explain wage differences include all but one of the following.Which factor does not help explain differences in wages?

The supply curve of a uniquely talented actor or superstar athlete will be perfectly inelastic.

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

Exam 10: Monopoly and Antitrust

What is the marginal productivity theory of income distribution?

The signalling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

All else being equal,if job turnover has people leaving jobs and finding new jobs in the same industry,this will

Compared to a competitive market,a firm that has a monopsony in a labour market would

Economic discrimination takes place when an employer

Increases in population shift the market supply curve for labour to the right.

Marginal revenue product of labour for a competitive seller is

Wage differentials between occupations can be explained by all of the following except

The income effect of a wage increase is observed when

Which of the following economists is best known for exploring the application of economic analysis to human resources issues?

Table 10-2 -Refer to Table 10-2.The marginal revenue product of labour from the third unit of labour is

Figure 10-2 Figure 10-2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets. -Refer to Figure 10-2.If Becca can sell her bracelets at $3 each,what is the marginal product of the 4th worker?

The demand curve for labour is also

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

If a stock's dividend is expected to grow at a constant rate of 8 per cent in the future and it has just paid a dividend of $1.25 a share,and you have an alternative investment of equal risk that will earn a 12 per cent rate of return,what would you be willing to pay per share for this stock?

Differences in marginal revenue products are the most important factor in explaining wage differences.Other factors that explain wage differences include all but one of the following.Which factor does not help explain differences in wages?

The supply curve of a uniquely talented actor or superstar athlete will be perfectly inelastic.

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