Question 1

The key difference between oligopoly and other market structures is the interdependence among producers.

Accepted Answer

A) True 
 B)False

Question 2

Firms with union contracts do a large portion of the painting jobs in the county.If the painters' union wins a 12 percent wage increase, what will most likely happen in the non-unionized part of the painters' labor market?

Accepted Answer

A) Nonunion painters will also get 12 percent wage increases. 
B) There will be no change in the nonunionized part of the painters' labor market because these sectors are not connected. 
C) Wage rates in the nonunion sector are likely to fall. 
D) Many nonunion painters will likely find work for a firm with a union contract. 
A) Nonunion painters will also get 12 percent wage increases. 
B) There will be no change in the nonunionized part of the painters' labor market because these sectors are not connected. 
C) Wage rates in the nonunion sector are likely to fall. 
D) Many nonunion painters will likely find work for a firm with a union contract.

Question 3

When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as:

Accepted Answer

A) the marginal product of labor > 0. 
B) the marginal revenue product of labor  the marginal resource cost. 
D) none of the above. 
A) the marginal product of labor > 0. 
B) the marginal revenue product of labor  the marginal resource cost. 
D) none of the above.

Question 4

One of the most famous cartels is OPEC.

Accepted Answer

A) True 
 B)False

Question 5

The most significant factor enabling unions to negotiate increased wages for its members is likely:

Accepted Answer

A) that unions increase the demand for labor. 
B) that unions decrease the supply of labor in the union sector. 
C) that unions increase the marginal product of labor. 
D) that unions increase the supply of labor in the union sector. 
A) that unions increase the demand for labor. 
B) that unions decrease the supply of labor in the union sector. 
C) that unions increase the marginal product of labor. 
D) that unions increase the supply of labor in the union sector.

Question 6

Whether a dominant strategy is an optimal strategy for a firm depends upon the actions of competitors.

Accepted Answer

A) True 
 B)False

Question 7

For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:

Accepted Answer

A) is constant and equal to the market wage. 
B) increases, causing the labor supply curve to slope upward. 
C) declines because the marginal product of labor diminishes as the number of workers rises. 
D) declines because a competitive firm must lower product price in order to increase sales. 
A) is constant and equal to the market wage. 
B) increases, causing the labor supply curve to slope upward. 
C) declines because the marginal product of labor diminishes as the number of workers rises. 
D) declines because a competitive firm must lower product price in order to increase sales.

Question 8

Explain what is meant by "derived demand" as it relates to factors of production.

Accepted Answer

The demand for a factor of production is

Question 9

The salaries of college professors are partly determined by the demand for college education.

Accepted Answer

A) True 
 B)False

Question 10

Since the 1980s the proportion of income received by the top 5 percent of Americans has ____, and the measured income of Americans in the lowest fifth has ____.

Accepted Answer

A) risen; risen 
B) risen; fallen 
C) fallen; risen 
D) fallen; fallen 
A) risen; risen 
B) risen; fallen 
C) fallen; risen 
D) fallen; fallen

The key difference between oligopoly and other market structures is the interdependence among producers.

Firms with union contracts do a large portion of the painting jobs in the county.If the painters' union wins a 12 percent wage increase, what will most likely happen in the non-unionized part of the painters' labor market?

When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as:

One of the most famous cartels is OPEC.

The most significant factor enabling unions to negotiate increased wages for its members is likely:

Whether a dominant strategy is an optimal strategy for a firm depends upon the actions of competitors.

For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:

Explain what is meant by "derived demand" as it relates to factors of production.

The salaries of college professors are partly determined by the demand for college education.

Since the 1980s the proportion of income received by the top 5 percent of Americans has , and the measured income of Americans in the lowest fifth has .

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

The key difference between oligopoly and other market structures is the interdependence among producers.

Firms with union contracts do a large portion of the painting jobs in the county.If the painters' union wins a 12 percent wage increase, what will most likely happen in the non-unionized part of the painters' labor market?

When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as:

One of the most famous cartels is OPEC.

The most significant factor enabling unions to negotiate increased wages for its members is likely:

Whether a dominant strategy is an optimal strategy for a firm depends upon the actions of competitors.

For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:

Explain what is meant by "derived demand" as it relates to factors of production.

The salaries of college professors are partly determined by the demand for college education.

Since the 1980s the proportion of income received by the top 5 percent of Americans has ____, and the measured income of Americans in the lowest fifth has ____.

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

Since the 1980s the proportion of income received by the top 5 percent of Americans has , and the measured income of Americans in the lowest fifth has .