Question 1

Income inequality is greater within nations than among nations.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following might shift an individual's supply curve of labor to the left?

Accepted Answer

A) winning the lottery 
B) a decrease in nonwage income 
C) due to falling sales, businesses are less willing to hire additional workers 
D) a decrease in derived demand 
E) improved workplace amenities 
A) winning the lottery 
B) a decrease in nonwage income 
C) due to falling sales, businesses are less willing to hire additional workers 
D) a decrease in derived demand 
E) improved workplace amenities

Question 3

Approximately ____ of national income goes to wages and salaries for labor services.

Accepted Answer

A) 90 percent 
B) 75 percent 
C) 60 percent 
D) 45 percent 
E) 25 percent 
A) 90 percent 
B) 75 percent 
C) 60 percent 
D) 45 percent 
E) 25 percent

Question 4

Which of the following will result in a leftward shift of the market supply curve for labor?

Accepted Answer

A) an increase in immigration 
B) a decrease in labor productivity 
C) an increase in the working-age population 
D) an increase in nonwage income 
A) an increase in immigration 
B) a decrease in labor productivity 
C) an increase in the working-age population 
D) an increase in nonwage income

Question 5

In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium.

Accepted Answer

A) True 
 B)False

Question 6

The marginal resource cost is the amount by which an additional unit of input decreases the firm's variable costs.

Accepted Answer

A) True 
 B)False

Question 7

Labor unions:

Accepted Answer

A) increase employment in the non-union sector. 
B) decrease employment in the union sector. 
C) decrease non-union wages. 
D) do all of the above. 
A) increase employment in the non-union sector. 
B) decrease employment in the union sector. 
C) decrease non-union wages. 
D) do all of the above.

Question 8

Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array} { c c c c } 
\text { Workers } & \text { Output } & \text { Product Price } & \text { Wage Rate } \
\hline 12 & 5,000 & \$ 2 & \$ 725 \
13 & 5,450 & \$ 2 & \$ 725 \
14 & 5,875 & \$ 2 & \$ 725 \
15 & 6,275 & \$ 2 & \$ 725 \
16 & 6,650 &\$2 &\$ 725 \
17 & 7,000 & \$ 2 & \$ 725 \
18 & 7,325 & \$ 2 & \$ 725
\end{array}$$

Accepted Answer

A) 14 
B) 15 
C) 16 
D) 17 
E) 18 
A) 14 
B) 15 
C) 16 
D) 17 
E) 18

Question 9

An individual firm in a perfectly competitive labor market faces:

Accepted Answer

A) a downward sloping labor demand curve and an upward sloping labor supply curve. 
B) a horizontal labor supply curve and a vertical labor demand curve. 
C) a horizontal labor supply curve and a downward sloping labor demand curve. 
D) an upward sloping labor supply curve and a horizontal labor demand curve. 
E) a vertical labor supply curve and a horizontal labor demand curve. 
A) a downward sloping labor demand curve and an upward sloping labor supply curve. 
B) a horizontal labor supply curve and a vertical labor demand curve. 
C) a horizontal labor supply curve and a downward sloping labor demand curve. 
D) an upward sloping labor supply curve and a horizontal labor demand curve. 
E) a vertical labor supply curve and a horizontal labor demand curve.

Question 10

On average, an individual with a college degree earns ____ more than an individual who has not completed high school.

Accepted Answer

A) $8,000 
B) $18,000 
C) $28,000 
D) $30,000 
A) $8,000 
B) $18,000 
C) $28,000 
D) $30,000

Question 11

Which of the following will contribute to higher wage rates for labor?

Accepted Answer

A) increased productivity 
B) increases in capital formation 
C) a decrease in the supply of labor 
D) increased marginal productivity of labor 
E) all of the above 
A) increased productivity 
B) increases in capital formation 
C) a decrease in the supply of labor 
D) increased marginal productivity of labor 
E) all of the above

Question 12

Large oligopoly firms are often able to take advantage of significant economies of scale.As a result, they can often produce at a lower average total cost than can smaller firms.

Accepted Answer

A) True 
 B)False

Question 13

On average, middle-aged people tend to have higher incomes than younger or older people do because:

Accepted Answer

A) they receive more money from the government than younger or older people do. 
B) they are at an age where their productivity is at its peak. 
C) they participate in the labor force to a lesser extent than do the young or the old. 
D) they are subject to lower rates of taxation than are younger or older workers. 
A) they receive more money from the government than younger or older people do. 
B) they are at an age where their productivity is at its peak. 
C) they participate in the labor force to a lesser extent than do the young or the old. 
D) they are subject to lower rates of taxation than are younger or older workers.

Question 14

Which of the following are examples of job amenities?

Accepted Answer

A) a child-care center at work 
B) health insurance benefits 
C) pleasant working conditions 
D) a workplace gymnasium 
E) all of the above 
A) a child-care center at work 
B) health insurance benefits 
C) pleasant working conditions 
D) a workplace gymnasium 
E) all of the above

Question 15

Union workers earn approximately 15 percent more than otherwise identical non-union workers do.

Accepted Answer

A) True 
 B)False

Question 16

Which welfare program allows the working poor to receive income refunds that can be greater than the taxes they paid during the last year?

Accepted Answer

A) SSI 
B) TANF 
C) EITC 
D) Medicaid 
A) SSI 
B) TANF 
C) EITC 
D) Medicaid

Question 17

The ____ participate in the labor force to a greater extent than do the ____.

Accepted Answer

A) very young; middle-aged and very old 
B) middle-aged; very young and very old 
C) very old; very young and middle-aged 
D) very young and very old; middle-aged 
A) very young; middle-aged and very old 
B) middle-aged; very young and very old 
C) very old; very young and middle-aged 
D) very young and very old; middle-aged

Question 18

Longitudinal data on income inequality in the United States indicates that:

Accepted Answer

A) children of poor families stay poor, but children of rich families do not always stay rich. 
B) children of poor families often escape poverty, but rich families invariably retain their wealth over time. 
C) there is substantial movement among income groupings in the United States. 
D) the rich are getting richer and the poor are getting poorer. 
A) children of poor families stay poor, but children of rich families do not always stay rich. 
B) children of poor families often escape poverty, but rich families invariably retain their wealth over time. 
C) there is substantial movement among income groupings in the United States. 
D) the rich are getting richer and the poor are getting poorer.

Question 19

Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry.

Accepted Answer

A) True 
 B)False

Question 20

If the demand for opera singers increases faster than the supply, wages will rise.

Accepted Answer

A) True 
 B)False

Income inequality is greater within nations than among nations.

Which of the following might shift an individual's supply curve of labor to the left?

Approximately ____ of national income goes to wages and salaries for labor services.

Which of the following will result in a leftward shift of the market supply curve for labor?

In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium.

The marginal resource cost is the amount by which an additional unit of input decreases the firm's variable costs.

Labor unions:

Based on the table below, how many workers will the firm employ in order to maximize profits? Workers Output Product Price Wage Rate 12 5,000 \ 2 \ 725 13 5,450 \ 2 \ 725 14 5,875 \ 2 \ 725 15 6,275 \ 2 \ 725 16 6,650 \2 \ 725 17 7,000 \ 2 \ 725 18 7,325 \ 2 \ 725

An individual firm in a perfectly competitive labor market faces:

On average, an individual with a college degree earns ____ more than an individual who has not completed high school.

Which of the following will contribute to higher wage rates for labor?

Large oligopoly firms are often able to take advantage of significant economies of scale.As a result, they can often produce at a lower average total cost than can smaller firms.

On average, middle-aged people tend to have higher incomes than younger or older people do because:

Which of the following are examples of job amenities?

Union workers earn approximately 15 percent more than otherwise identical non-union workers do.

Which welfare program allows the working poor to receive income refunds that can be greater than the taxes they paid during the last year?

The participate in the labor force to a greater extent than do the .

Longitudinal data on income inequality in the United States indicates that:

Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry.

If the demand for opera singers increases faster than the supply, wages will rise.

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 10: Labor Markets, Income Distribution, and Poverty

Income inequality is greater within nations than among nations.

Which of the following might shift an individual's supply curve of labor to the left?

Approximately ____ of national income goes to wages and salaries for labor services.

Which of the following will result in a leftward shift of the market supply curve for labor?

In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium.

The marginal resource cost is the amount by which an additional unit of input decreases the firm's variable costs.

Labor unions:

Based on the table below, how many workers will the firm employ in order to maximize profits? Workers Output Product Price Wage Rate 12 5,000 \ 2 \ 725 13 5,450 \ 2 \ 725 14 5,875 \ 2 \ 725 15 6,275 \ 2 \ 725 16 6,650 \2 \ 725 17 7,000 \ 2 \ 725 18 7,325 \ 2 \ 725

An individual firm in a perfectly competitive labor market faces:

On average, an individual with a college degree earns ____ more than an individual who has not completed high school.

Which of the following will contribute to higher wage rates for labor?

Large oligopoly firms are often able to take advantage of significant economies of scale.As a result, they can often produce at a lower average total cost than can smaller firms.

On average, middle-aged people tend to have higher incomes than younger or older people do because:

Which of the following are examples of job amenities?

Union workers earn approximately 15 percent more than otherwise identical non-union workers do.

Which welfare program allows the working poor to receive income refunds that can be greater than the taxes they paid during the last year?

The ____ participate in the labor force to a greater extent than do the ____.

Longitudinal data on income inequality in the United States indicates that:

Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry.

If the demand for opera singers increases faster than the supply, wages will rise.

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

The participate in the labor force to a greater extent than do the .