Question 1

How might a clothing store differentiate itself from its competitors? List at least three ways.

Accepted Answer

Answers will vary. Possible examples inc

Question 2

A typical 50-year-old male earns:

Accepted Answer

A) one-third more than a male in his early 20s. 
B) nearly twice the income of a male in his early 20s. 
C) one-third less than workers over 65. 
D) nearly twice the income of workers over 65. 
A) one-third more than a male in his early 20s. 
B) nearly twice the income of a male in his early 20s. 
C) one-third less than workers over 65. 
D) nearly twice the income of workers over 65.

Question 3

Explain why an increasing divorce rate tends to increase the inequality of income.

Accepted Answer

Divorces create two households where for

Question 4

If a large number of skilled workers retire at about the same time through early retirements or buyouts, what will happen to the wages of skilled workers, other things being equal?

Accepted Answer

The supply of skilled workers would shif

Question 5

What are the characteristics of oligopoly?

Accepted Answer

The follow

Question 6

Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run.

Accepted Answer

A) True 
 B)False

Question 7

The "Prisoners' Dilemma" is an important game to study because strategic decisions faced by the prisoners are similar to those confronting noncolluding oligopolists.

Accepted Answer

A) True 
 B)False

Question 8

If, beginning from a competitive labor market, some workers form a union and negotiate a higher rate for themselves, which of the following is likely to happen?

Accepted Answer

A) Competition will force the wage rate in the non-union sector to increase to the level of the union wage. 
B) The marginal product of labor curve will increase in the unionized sector. 
C) Employment will move from the union to the non-union sector over time. 
D) Employment will increase in the union sector because workers will be attracted by the higher union wage. 
A) Competition will force the wage rate in the non-union sector to increase to the level of the union wage. 
B) The marginal product of labor curve will increase in the unionized sector. 
C) Employment will move from the union to the non-union sector over time. 
D) Employment will increase in the union sector because workers will be attracted by the higher union wage.

Question 9

Based on the table below, how many workers will the firm employ in order to maximize profits? $$\begin{array} { c c c c } 
\text { Workers } & \text { Output } & \text { Praduct Price } & \text { Wage Rate } \
\hline 1 & 40 & \$ 14 & \$ 500 \
2 & 90 & \$ 14 & \$ 500 \
3 & 160 & \$ 14 & \$ 500 \
4 & 230 & \$ 14 & \$ 500 \
5 & 290 & \$ 14 & \$ 500 \
6 & 340 & \$ 14 & \$ 500 \
7 & 380 & \$ 14 & \$ 500
\end{array}$$

Accepted Answer

A) 4 
B) 5 
C) 6 
D) 7 
E) 8 
A) 4 
B) 5 
C) 6 
D) 7 
E) 8

Question 10

The demand for labor is a derived demand.Employers hire workers until the:

Accepted Answer

A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero. 
E) marginal product of labor is zero. 
A) wage rate equals the average product of labor. 
B) wage rate equals the marginal revenue product of labor. 
C) last worker hired adds nothing to total output. 
D) average product of labor is zero. 
E) marginal product of labor is zero.

Question 11

The primary difference between cooperative and noncooperative games is the ability to form contracts.

Accepted Answer

A) True 
 B)False

Question 12

Economists consider the breakfast food industry to be an oligopolistic market.

Accepted Answer

A) True 
 B)False

Question 13

A monopolistic competitor's demand curve tends to be more inelastic than a monopolist's demand curve.

Accepted Answer

A) True 
 B)False

Question 14

By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers.

Accepted Answer

A) True 
 B)False

Question 15

If there is an increase in demand for a good,

Accepted Answer

A) there will be an increase in demand for the inputs that produce it. 
B) there will be a decrease in demand for the inputs that produce it. 
C) there will be an increase in supply of the inputs that produce it. 
D) there will be a decrease in supply of the inputs that produce it. 
A) there will be an increase in demand for the inputs that produce it. 
B) there will be a decrease in demand for the inputs that produce it. 
C) there will be an increase in supply of the inputs that produce it. 
D) there will be a decrease in supply of the inputs that produce it.

Question 16

Most Americans experience significant fluctuations in their economic well-being from one year to the next.

Accepted Answer

A) True 
 B)False

Question 17

A decrease in the productivity of labor will shift the demand curve for labor to the left, other things being equal.

Accepted Answer

A) True 
 B)False

Question 18

The firm represented in the table below participates in a perfectly competitive market for their product as well as for labor.Complete the chart and answer the following questions. $\begin{array}{|c|c|c|c|c|c|}
\hline\
\begin{array}{c}
\text { Quantity of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Output }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Product of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Product } \
\text { Price }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue } \
\text { Product of } \
\text { Labor }
\end{array} & \begin{array}{c}
\text { Wage Rate } \
\text { (MRC) per } \
\text { day }
\end{array} \
\hline 0 & 0 & \cdots & \cdots-- & \cdots \
\hline 1 & 10 & 10 & \$ 10 & 100 & \$ 55 \
\hline 2 & 19 & & \$ & \
\hline 3 & 27 & & \$ & \
\hline 4 & 34 & & \$ & \
\hline 5 & 40 & & \$ & \
\hline 6 & 45 & & \$ & \
\hline 7 & 49 & & \$ & \
\hline 8 & 52 & & \$ & \
\hline
\end{array}$ 
a. If the firm represented in the table above is currently employing two units of labor, should they hire a third? Why or why not?
b. If the firm represented in the table above is currently employing four units of labor, should they hire a fifth? Why or why not?
c. If the firm represented in the table above is currently employing seven units of labor, should they hire an eighth? Why or why not?
d. At what level of employment will the firm be maximizing profit? If they hire one additional unit of labor, what will be the cost?

Accepted Answer

@#IMG-DLM& a.If the firm is currently employing tw

Question 19

Exhibit 10-A
Several congressmen and senators have been greatly concerned about the fairness of salaries in the marketplace. They are contemplating enacting a law that would fix the wage rate at WS1U1B1AS1U1B0. Their aides, who were all excellent economics students, have returned with the results of an investigation into the matter, as portrayed below.  
-Refer to Exhibit 10-A.If the law were not enacted, the prevailing wage rate and quantity of labor at equilibrium in the market for computer software programmers would be:

Accepted Answer

A) WA and Q4, respectively. 
B) WA and Q5, respectively. 
C) WA and Q6, respectively. 
D) WC and Q4, respectively. 
E) WC and Q5, respectively. 
A) WA and Q4, respectively. 
B) WA and Q5, respectively. 
C) WA and Q6, respectively. 
D) WC and Q4, respectively. 
E) WC and Q5, respectively.

Question 20

A monopolistic competitor's demand curve tends to be more elastic than a monopolist's demand curve.

Accepted Answer

A) True 
 B)False

How might a clothing store differentiate itself from its competitors? List at least three ways.

A typical 50-year-old male earns:

Explain why an increasing divorce rate tends to increase the inequality of income.

If a large number of skilled workers retire at about the same time through early retirements or buyouts, what will happen to the wages of skilled workers, other things being equal?

What are the characteristics of oligopoly?

Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run.

The "Prisoners' Dilemma" is an important game to study because strategic decisions faced by the prisoners are similar to those confronting noncolluding oligopolists.

If, beginning from a competitive labor market, some workers form a union and negotiate a higher rate for themselves, which of the following is likely to happen?

Based on the table below, how many workers will the firm employ in order to maximize profits? Workers Output Praduct Price Wage Rate 1 40 \ 14 \ 500 2 90 \ 14 \ 500 3 160 \ 14 \ 500 4 230 \ 14 \ 500 5 290 \ 14 \ 500 6 340 \ 14 \ 500 7 380 \ 14 \ 500

The demand for labor is a derived demand.Employers hire workers until the:

The primary difference between cooperative and noncooperative games is the ability to form contracts.

Economists consider the breakfast food industry to be an oligopolistic market.

A monopolistic competitor's demand curve tends to be more inelastic than a monopolist's demand curve.

By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers.

If there is an increase in demand for a good,

Most Americans experience significant fluctuations in their economic well-being from one year to the next.

A decrease in the productivity of labor will shift the demand curve for labor to the left, other things being equal.

A monopolistic competitor's demand curve tends to be more elastic than a monopolist's demand curve.

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

How might a clothing store differentiate itself from its competitors? List at least three ways.

A typical 50-year-old male earns:

Explain why an increasing divorce rate tends to increase the inequality of income.

If a large number of skilled workers retire at about the same time through early retirements or buyouts, what will happen to the wages of skilled workers, other things being equal?

What are the characteristics of oligopoly?

Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run.

The "Prisoners' Dilemma" is an important game to study because strategic decisions faced by the prisoners are similar to those confronting noncolluding oligopolists.

If, beginning from a competitive labor market, some workers form a union and negotiate a higher rate for themselves, which of the following is likely to happen?

Based on the table below, how many workers will the firm employ in order to maximize profits? Workers Output Praduct Price Wage Rate 1 40 \ 14 \ 500 2 90 \ 14 \ 500 3 160 \ 14 \ 500 4 230 \ 14 \ 500 5 290 \ 14 \ 500 6 340 \ 14 \ 500 7 380 \ 14 \ 500

The demand for labor is a derived demand.Employers hire workers until the:

The primary difference between cooperative and noncooperative games is the ability to form contracts.

Economists consider the breakfast food industry to be an oligopolistic market.

A monopolistic competitor's demand curve tends to be more inelastic than a monopolist's demand curve.

By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers.

If there is an increase in demand for a good,

Most Americans experience significant fluctuations in their economic well-being from one year to the next.

A decrease in the productivity of labor will shift the demand curve for labor to the left, other things being equal.

A monopolistic competitor's demand curve tends to be more elastic than a monopolist's demand curve.

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