Question 1

Some current members of the military are against allowing homosexuals to serve openly in the armed forces. This is an example of:

Accepted Answer

A)  employer discrimination. 
B)  government discrimination. 
C)  customer discrimination. 
D)  employee discrimination. 
A)  employer discrimination. 
B)  government discrimination. 
C)  customer discrimination. 
D)  employee discrimination.

Question 2

One of the most important reasons why job safety increases over time is:

Accepted Answer

A)  government regulation. 
B)  changing labor market conditions. 
C)  economic growth. 
D)  labor unionization. 
A)  government regulation. 
B)  changing labor market conditions. 
C)  economic growth. 
D)  labor unionization.

Question 3

In general, wages are determined:

Accepted Answer

A)  by the skills of the worker, regardless of the country he or she works in. 
B)  by the skills of the worker and the productivity of the entire economy. 
C)  based on the average wage for all individuals in a particular country. 
D)  based on the average marginal product of labor of workers in similar countries. 
A)  by the skills of the worker, regardless of the country he or she works in. 
B)  by the skills of the worker and the productivity of the entire economy. 
C)  based on the average wage for all individuals in a particular country. 
D)  based on the average marginal product of labor of workers in similar countries.

Question 4

The introduction of risk into a job ______ labor ______.

Accepted Answer

A)  increases; demand 
B)  increases; supply 
C)  decreases; demand 
D)  decreases; supply 
A)  increases; demand 
B)  increases; supply 
C)  decreases; demand 
D)  decreases; supply

Question 5

Unions raise wages by:

Accepted Answer

A)  increasing demand for labor in the industry. 
B)  decreasing supply of labor in the industry. 
C)  increasing employment in the industry. 
D)  putting price controls on wages in the industry. 
A)  increasing demand for labor in the industry. 
B)  decreasing supply of labor in the industry. 
C)  increasing employment in the industry. 
D)  putting price controls on wages in the industry.

Question 6

Evidence suggests that résumés with names closely associated with African Americans received:

Accepted Answer

A)  more than average number of interview requests. 
B)  less than average number of interview requests. 
C)  about the same as the average number of interview requests. 
D)  sometimes more than, sometimes less than, the average number of interview requests. 
A)  more than average number of interview requests. 
B)  less than average number of interview requests. 
C)  about the same as the average number of interview requests. 
D)  sometimes more than, sometimes less than, the average number of interview requests.

Question 7

A firm will hire workers as long as the marginal product of labor is:

Accepted Answer

A)  greater than the wage. 
B)  equal to the wage. 
C)  less than the wage. 
D)  either greater than or less than the wage. 
A)  greater than the wage. 
B)  equal to the wage. 
C)  less than the wage. 
D)  either greater than or less than the wage.

Question 8

In a world of perfect information:

Accepted Answer

A)  statistical discrimination would not exist. 
B)  employers, but not employees, would practice statistical discrimination. 
C)  employees, but not employers, would practice statistical discrimination 
D)  statistical discrimination would be even more important. 
A)  statistical discrimination would not exist. 
B)  employers, but not employees, would practice statistical discrimination. 
C)  employees, but not employers, would practice statistical discrimination 
D)  statistical discrimination would be even more important.

Question 9

The danger of a job reduces the supply of labor for that job, increasing wages.

Accepted Answer

A) True 
 B)False

Question 10

Evidence suggests that a successful market economy would:

Accepted Answer

A)  succeed by maintaining informal segregation on a widespread basis. 
B)  succeed by maintaining formal segregation on a limited basis. 
C)  not succeed without maintaining formal segregation on a widespread basis. 
D)  not succeed by maintaining formal segregation on a widespread basis. 
A)  succeed by maintaining informal segregation on a widespread basis. 
B)  succeed by maintaining formal segregation on a limited basis. 
C)  not succeed without maintaining formal segregation on a widespread basis. 
D)  not succeed by maintaining formal segregation on a widespread basis.

Question 11

Why might equally competent and hard-working janitors earn more in the United States than in India?

Accepted Answer

A)  India does not have labor markets. 
B)  Economics is not the same in the United States as it is in India. 
C)  An hour of janitorial service raises less revenue in the United States because the U.S. firm is more productive. 
D)  An hour of janitorial service raises more revenue in the United States because the U.S. firm is more productive. 
A)  India does not have labor markets. 
B)  Economics is not the same in the United States as it is in India. 
C)  An hour of janitorial service raises less revenue in the United States because the U.S. firm is more productive. 
D)  An hour of janitorial service raises more revenue in the United States because the U.S. firm is more productive.

Question 12

Which of the following determines an individual's wage?
I. the individual's skills
II. the productivity of the firm the individual works in
III. the shape of the individual's labor supply curve

Accepted Answer

A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III 
A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III

Question 13

Which of the following statements is TRUE?

Accepted Answer

A)  Compared to white-sounding names on résumés, black-sounding names received fewer interview callbacks. 
B)  Stephen Levitt and Roland Fryer found that a black-sounding name has a large negative effect on a person's lifetime earnings. 
C)  Shorter men earn more than taller men. 
D)  Labor markets do not reward beautiful people with higher wages. 
A)  Compared to white-sounding names on résumés, black-sounding names received fewer interview callbacks. 
B)  Stephen Levitt and Roland Fryer found that a black-sounding name has a large negative effect on a person's lifetime earnings. 
C)  Shorter men earn more than taller men. 
D)  Labor markets do not reward beautiful people with higher wages.

Question 14

Suppose that a public accounting firm plans to hire some accountants for tax season. What will happen to the marginal product of labor as the firm hires more and more accountants?

Accepted Answer

A)  The marginal product of labor will increase because preparing tax returns requires high levels of education and experience. 
B)  The marginal product of labor will increase because completing and filing tax returns requires team production techniques. 
C)  The marginal product of labor will decline because each subsequent accountant that is hired will be assigned to work on less important (i.e., less lucrative) tax returns. 
D)  The marginal product of labor will not change because the practice of accounting is quite standardized, forcing all accountants to follow the uniform procedures set forth in federal tax law. 
A)  The marginal product of labor will increase because preparing tax returns requires high levels of education and experience. 
B)  The marginal product of labor will increase because completing and filing tax returns requires team production techniques. 
C)  The marginal product of labor will decline because each subsequent accountant that is hired will be assigned to work on less important (i.e., less lucrative) tax returns. 
D)  The marginal product of labor will not change because the practice of accounting is quite standardized, forcing all accountants to follow the uniform procedures set forth in federal tax law.

Question 15

The marginal product of labor typically declines as the number of workers increases.

Accepted Answer

A) True 
 B)False

Question 16

The marginal product of labor curve is the same as the:

Accepted Answer

A)  marginal cost curve for labor. 
B)  wage curve for labor. 
C)  labor supply curve. 
D)  labor demand curve. 
A)  marginal cost curve for labor. 
B)  wage curve for labor. 
C)  labor supply curve. 
D)  labor demand curve.

Question 17

Which of the following statements is(are) TRUE?
I. The demand for labor is downward sloping.
II. The marginal product of labor declines as a firm hires more labor.
III. The marginal product of labor is the demand curve for labor.

Accepted Answer

A)  I only 
B)  I and II only 
C)  III only 
D)  I, II, and III 
A)  I only 
B)  I and II only 
C)  III only 
D)  I, II, and III

Question 18

It is often said that women earn about 80 cents per dollar earned by men. Explain how this may have contributed to the perception that employers discriminate against women, and describe what other factors may have contributed to differences between the average wages of men and women.

Accepted Answer

The trouble with this widely reported st

Question 19

An individual labor supply curve:

Accepted Answer

A)  is always positively sloped. 
B)  is always negatively sloped. 
C)  is always vertical. 
D)  can be positively sloped, vertical, or negatively sloped at different ranges. 
A)  is always positively sloped. 
B)  is always negatively sloped. 
C)  is always vertical. 
D)  can be positively sloped, vertical, or negatively sloped at different ranges.

Question 20

There is an Italian soccer player who earns more than $10 million per year. Why would his team pay him so much?

Accepted Answer

The owners of the team must believe he a

Exam 18: Labor Markets

Some current members of the military are against allowing homosexuals to serve openly in the armed forces. This is an example of:

One of the most important reasons why job safety increases over time is:

In general, wages are determined:

The introduction of risk into a job ______ labor ______.

Unions raise wages by:

Evidence suggests that résumés with names closely associated with African Americans received:

A firm will hire workers as long as the marginal product of labor is:

In a world of perfect information:

The danger of a job reduces the supply of labor for that job, increasing wages.

Evidence suggests that a successful market economy would:

Why might equally competent and hard-working janitors earn more in the United States than in India?

Which of the following determines an individual's wage? I. the individual's skills II. the productivity of the firm the individual works in III. the shape of the individual's labor supply curve

Which of the following statements is TRUE?

Suppose that a public accounting firm plans to hire some accountants for tax season. What will happen to the marginal product of labor as the firm hires more and more accountants?

The marginal product of labor typically declines as the number of workers increases.

The marginal product of labor curve is the same as the:

Which of the following statements is(are) TRUE? I. The demand for labor is downward sloping. II. The marginal product of labor declines as a firm hires more labor. III. The marginal product of labor is the demand curve for labor.

It is often said that women earn about 80 cents per dollar earned by men. Explain how this may have contributed to the perception that employers discriminate against women, and describe what other factors may have contributed to differences between the average wages of men and women.

An individual labor supply curve:

There is an Italian soccer player who earns more than $10 million per year. Why would his team pay him so much?

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Public Goods and the Tragedy of the Commons

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters

The introduction of risk into a job labor .