Question 1

Which of the following is not part of an argument that unions lead to increased productivity?

Accepted Answer

A) reduction in worker turnover 
B) improved morale 
C) employees with more motivation 
D) benefits from featherbedding 
E) more effective communication in areas of discontent 
A) reduction in worker turnover 
B) improved morale 
C) employees with more motivation 
D) benefits from featherbedding 
E) more effective communication in areas of discontent

Question 2

Many economists conclude that in-kind income programs have served to increase levels of inequality significantly from the levels suggested by aggregate income statistics.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is likely to increase the supply of labor?

Accepted Answer

A) a decrease in the population 
B) a relaxation of restrictions on immigration 
C) a decrease in fringe benefits 
D) an increase in the value placed on leisure 
A) a decrease in the population 
B) a relaxation of restrictions on immigration 
C) a decrease in fringe benefits 
D) an increase in the value placed on leisure

Question 4

In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?

Accepted Answer

Collusion for an oligopolist is similar

Question 5

Which of the following will not result in a rightward shift of the market supply curve for labor?

Accepted Answer

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

Question 6

Monopolistic competition is more similar to monopoly than any other industry model.

Accepted Answer

A) True 
 B)False

Question 7

Why does inefficiency exist in monopolistic competition?

Accepted Answer

Inefficiency of monopolistic competition

Question 8

An example of in-kind income is:

Accepted Answer

A) a welfare payment. 
B) a cash grant. 
C) a housing subsidy. 
D) an unemployment check. 
A) a welfare payment. 
B) a cash grant. 
C) a housing subsidy. 
D) an unemployment check.

Question 9

The demand for labor of a perfectly competitive producer:

Accepted Answer

A) is perfectly elastic at the going wage rate. 
B) is downward sloping because prices fall when the producer increases output. 
C) is downward sloping because of diminishing marginal productivity. 
D) is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity. 
E) is downward sloping because of diminishing marginal utility. 
A) is perfectly elastic at the going wage rate. 
B) is downward sloping because prices fall when the producer increases output. 
C) is downward sloping because of diminishing marginal productivity. 
D) is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity. 
E) is downward sloping because of diminishing marginal utility.

Question 10

It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles.

Accepted Answer

A) Medicaid 
B) higher education 
C) art museum 
D) airport and airline subsidy 
A) Medicaid 
B) higher education 
C) art museum 
D) airport and airline subsidy

Question 11

Would an increase in the productivity of labor lead to an increase or a decrease in the demand for labor? Why?

Accepted Answer

An increase in productivity would lead t

Question 12

If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder when income comparisons are made at different points in time.

Accepted Answer

A) True 
 B)False

Question 13

Other things being equal, an increase in the workplace amenities, such as increased health care and more generous vacation options, would tend to shift the labor supply curve to the ____.

Accepted Answer

A) left, increasing wages. 
B) right, increasing wages. 
C) left, decreasing wages. 
D) right, decreasing wages. 
A) left, increasing wages. 
B) right, increasing wages. 
C) left, decreasing wages. 
D) right, decreasing wages.

Question 14

The relationship between the wage rate and the quantity of labor that workers wish to supply is called:

Accepted Answer

A) the market supply curve for labor. 
B) the market demand curve for labor. 
C) an individual demand curve for labor. 
D) an individual supply curve for labor. 
E) the market demand curve for output. 
A) the market supply curve for labor. 
B) the market demand curve for labor. 
C) an individual demand curve for labor. 
D) an individual supply curve for labor. 
E) the market demand curve for output.

Question 15

Other things equal, which of the following would not tend to earn more?

Accepted Answer

A) Someone in a riskier or more unpleasant job, rather than a safer or more pleasant job. 
B) Someone who places a lower value on leisure, rather than a higher value. 
C) Someone in a job that requires a graduate degree rather than an undergraduate degree. 
D) Someone who works longer hours, rather than shorter hours. 
E) All of the above would tend to earn more. 
A) Someone in a riskier or more unpleasant job, rather than a safer or more pleasant job. 
B) Someone who places a lower value on leisure, rather than a higher value. 
C) Someone in a job that requires a graduate degree rather than an undergraduate degree. 
D) Someone who works longer hours, rather than shorter hours. 
E) All of the above would tend to earn more.

Question 16

Scholars argue that government activity should be considered when evaluating the measured income distribution because:

Accepted Answer

A) the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. 
B) the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid. 
C) the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. 
D) the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums. 
A) the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. 
B) the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid. 
C) the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. 
D) the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.

Question 17

Which of the following is false?

Accepted Answer

A) An increase in labor productivity will shift the demand curve for labor to the right. 
B) An increase in wage will lead to an increase in the supply of labor. 
C) A decrease in the nonwage income of workers would shift the labor supply curve to the right. 
D) If job conditions deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve. 
E) If the demand for labor increased faster than the supply, the real wages of workers would rise. 
A) An increase in labor productivity will shift the demand curve for labor to the right. 
B) An increase in wage will lead to an increase in the supply of labor. 
C) A decrease in the nonwage income of workers would shift the labor supply curve to the right. 
D) If job conditions deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve. 
E) If the demand for labor increased faster than the supply, the real wages of workers would rise.

Question 18

Why should consumers be concerned about collusive agreements? What legal remedies are available now?

Accepted Answer

Collusive agreements are basically agree

Question 19

Individuals who are workaholics tend to have higher incomes than individuals who are not.

Accepted Answer

A) True 
 B)False

Question 20

The profit-maximizing firm should continue hiring additional labor as long as:

Accepted Answer

A) MRC  MRP. 
C) MRC = MRP. 
D) the MP of labor > 0. 
A) MRC  MRP. 
C) MRC = MRP. 
D) the MP of labor > 0.

Which of the following is not part of an argument that unions lead to increased productivity?

Many economists conclude that in-kind income programs have served to increase levels of inequality significantly from the levels suggested by aggregate income statistics.

Which of the following is likely to increase the supply of labor?

In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?

Which of the following will not result in a rightward shift of the market supply curve for labor?

Monopolistic competition is more similar to monopoly than any other industry model.

Why does inefficiency exist in monopolistic competition?

An example of in-kind income is:

The demand for labor of a perfectly competitive producer:

It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles.

Would an increase in the productivity of labor lead to an increase or a decrease in the demand for labor? Why?

If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder when income comparisons are made at different points in time.

Other things being equal, an increase in the workplace amenities, such as increased health care and more generous vacation options, would tend to shift the labor supply curve to the ____.

The relationship between the wage rate and the quantity of labor that workers wish to supply is called:

Other things equal, which of the following would not tend to earn more?

Scholars argue that government activity should be considered when evaluating the measured income distribution because:

Which of the following is false?

Why should consumers be concerned about collusive agreements? What legal remedies are available now?

Individuals who are workaholics tend to have higher incomes than individuals who are not.

The profit-maximizing firm should continue hiring additional labor as long as:

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

Which of the following is not part of an argument that unions lead to increased productivity?

Many economists conclude that in-kind income programs have served to increase levels of inequality significantly from the levels suggested by aggregate income statistics.

Which of the following is likely to increase the supply of labor?

In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?

Which of the following will not result in a rightward shift of the market supply curve for labor?

Monopolistic competition is more similar to monopoly than any other industry model.

Why does inefficiency exist in monopolistic competition?

An example of in-kind income is:

The demand for labor of a perfectly competitive producer:

It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles.

Would an increase in the productivity of labor lead to an increase or a decrease in the demand for labor? Why?

If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder when income comparisons are made at different points in time.

Other things being equal, an increase in the workplace amenities, such as increased health care and more generous vacation options, would tend to shift the labor supply curve to the ____.

The relationship between the wage rate and the quantity of labor that workers wish to supply is called:

Other things equal, which of the following would not tend to earn more?

Scholars argue that government activity should be considered when evaluating the measured income distribution because:

Which of the following is false?

Why should consumers be concerned about collusive agreements? What legal remedies are available now?

Individuals who are workaholics tend to have higher incomes than individuals who are not.

The profit-maximizing firm should continue hiring additional labor as long as:

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