Question 1

Figure 10-B  
-Refer to Figure 10-B.Which of the following situations is relevant to Case A?

Accepted Answer

A) Deteriorating job conditions 
B) A decrease in nonwage income 
C) People become willing to work fewer hours at a given wage 
D) Workers leaving the labor force 
A) Deteriorating job conditions 
B) A decrease in nonwage income 
C) People become willing to work fewer hours at a given wage 
D) Workers leaving the labor force

Question 2

When a profit-maximizing firm makes a decision to employ a worker, that decision is based on:

Accepted Answer

A) the individual contribution that the worker makes to the profit of the firm. 
B) the average productivity of the firm's labor force. 
C) the familial relationship between the employer and the employee. 
D) the total output produced by the firm. 
A) the individual contribution that the worker makes to the profit of the firm. 
B) the average productivity of the firm's labor force. 
C) the familial relationship between the employer and the employee. 
D) the total output produced by the firm.

Question 3

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:

Accepted Answer

A) zero 
B) $1,600 
C) $6,400 
D) $8,000 
A) zero 
B) $1,600 
C) $6,400 
D) $8,000

Question 4

Which of the following best illustrates the concept of "derived demand"?

Accepted Answer

A) An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories. 
B) An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons. 
C) An increase in the price of gasoline leads to an increase in the demand for small cars. 
D) An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers. 
A) An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories. 
B) An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons. 
C) An increase in the price of gasoline leads to an increase in the demand for small cars. 
D) An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.

Question 5

As in perfect and monopolistic competition, oligopoly firms cannot earn economic profits in the long run.

Accepted Answer

A) True 
 B)False

Question 6

Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs.Why?

Accepted Answer

When unions become successful in obtaini

Question 7

Monopolistically competitive industries have significant barriers to entry and exit.

Accepted Answer

A) True 
 B)False

Question 8

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 government was to impose a wage rate of WA on the computer software programming industry:

Accepted Answer

A) the imposed wage would have no effect on the market for computer programmers. 
B) a shortage of software programmers would result. 
C) a quantity of Q4 software programmers would be demanded in the marketplace. 
D) there would be pressure from market forces for the wage to fall. 
E) all of the above. 
A) the imposed wage would have no effect on the market for computer programmers. 
B) a shortage of software programmers would result. 
C) a quantity of Q4 software programmers would be demanded in the marketplace. 
D) there would be pressure from market forces for the wage to fall. 
E) all of the above.

Question 9

The marginal resource cost of input is the amount that an extra unit of that input adds to the firm's total costs.

Accepted Answer

A) True 
 B)False

Question 10

The official poverty rate for the United States for a family of four is approximately:

Accepted Answer

A) $12,000. 
B) $16,000. 
C) $20,000. 
D) $24,000. 
E) $30,000. 
A) $12,000. 
B) $16,000. 
C) $20,000. 
D) $24,000. 
E) $30,000.

Question 11

A typical 50-year old male earns:

Accepted Answer

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

Question 12

Why are successful collusive oligopolies rather short-lived?

Accepted Answer

It is difficult for firms of different s

Question 13

A cartel is a group of firms that attempt to collude by coordinating price and output decisions.

Accepted Answer

A) True 
 B)False

Question 14

Figure 10-B  
-Refer to Figure 10-B.Which of the following situations is relevant to Case A?

Accepted Answer

A) Increases in income from other sources than employment 
B) Deteriorating job conditions 
C) People become willing to work fewer hours at a given wage 
D) New workers enter the labor force 
A) Increases in income from other sources than employment 
B) Deteriorating job conditions 
C) People become willing to work fewer hours at a given wage 
D) New workers enter the labor force

Question 15

The law of diminishing marginal product is a reason why the demand curve for labor is downward sloping.

Accepted Answer

A) True 
 B)False

Question 16

Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry.

Accepted Answer

A) True 
 B)False

Question 17

Other things being equal, a ____ supply of workers tends to ____ real wages.

Accepted Answer

A) larger; decrease 
B) smaller; decrease 
C) larger; increase 
D) smaller; not change 
E) larger; not change 
A) larger; decrease 
B) smaller; decrease 
C) larger; increase 
D) smaller; not change 
E) larger; not change

Question 18

In the last 60 years, the percentage of workers in union jobs has increased substantially.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would shift the supply of labor to the right?

Accepted Answer

A) A decrease in population. 
B) A decrease in immigration. 
C) A decrease in nonwage income. 
D) A decrease in the quality of on-the-job amenities. 
E) None of the above. 
A) A decrease in population. 
B) A decrease in immigration. 
C) A decrease in nonwage income. 
D) A decrease in the quality of on-the-job amenities. 
E) None of the above.

Question 20

Other things being equal, an increase in labor productivity will shift the labor supply curve to the right.

Accepted Answer

A) True 
 B)False

Figure 10-B -Refer to Figure 10-B.Which of the following situations is relevant to Case A?

When a profit-maximizing firm makes a decision to employ a worker, that decision is based on:

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:

Which of the following best illustrates the concept of "derived demand"?

As in perfect and monopolistic competition, oligopoly firms cannot earn economic profits in the long run.

Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs.Why?

Monopolistically competitive industries have significant barriers to entry and exit.

The marginal resource cost of input is the amount that an extra unit of that input adds to the firm's total costs.

The official poverty rate for the United States for a family of four is approximately:

A typical 50-year old male earns:

Why are successful collusive oligopolies rather short-lived?

A cartel is a group of firms that attempt to collude by coordinating price and output decisions.

Figure 10-B -Refer to Figure 10-B.Which of the following situations is relevant to Case A?

The law of diminishing marginal product is a reason why the demand curve for labor is downward sloping.

Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry.

Other things being equal, a supply of workers tends to real wages.

In the last 60 years, the percentage of workers in union jobs has increased substantially.

Which of the following would shift the supply of labor to the right?

Other things being equal, an increase in labor productivity will shift the labor supply curve to the right.

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

Figure 10-B -Refer to Figure 10-B.Which of the following situations is relevant to Case A?

When a profit-maximizing firm makes a decision to employ a worker, that decision is based on:

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:

Which of the following best illustrates the concept of "derived demand"?

As in perfect and monopolistic competition, oligopoly firms cannot earn economic profits in the long run.

Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs.Why?

Monopolistically competitive industries have significant barriers to entry and exit.

The marginal resource cost of input is the amount that an extra unit of that input adds to the firm's total costs.

The official poverty rate for the United States for a family of four is approximately:

A typical 50-year old male earns:

Why are successful collusive oligopolies rather short-lived?

A cartel is a group of firms that attempt to collude by coordinating price and output decisions.

Figure 10-B -Refer to Figure 10-B.Which of the following situations is relevant to Case A?

The law of diminishing marginal product is a reason why the demand curve for labor is downward sloping.

Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry.

Other things being equal, a ____ supply of workers tends to ____ real wages.

In the last 60 years, the percentage of workers in union jobs has increased substantially.

Which of the following would shift the supply of labor to the right?

Other things being equal, an increase in labor productivity will shift the labor supply curve to the right.

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

Other things being equal, a supply of workers tends to real wages.