Exam 10: Labor Markets, Income Distribution, and Poverty

If every individual earned the same total income over his or her lifetime, there would still be observed inequality because:

The "Prisoners' Dilemma" is an example of a cooperative game.

Which of the following is likely to improve a person's income?

The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product.

Based on the table below, how many workers will the firm employ in order to maximize profits? workers Output Product Price Wage Rate 8 100 \ 28 \ 375 9 130 \ 28 \ 400 10 162 \ 28 \ 425 11 192 \ 28 \ 450 12 220 \ 28 \ 475 13 246 \ 28 \ 500 14 270 \ 28 \ 25

Unions, by nature, must ____ their membership in order to ____ wages.

A naïve oligopolist fully recognizes the effects of mutual interdependence in a market.

Monopolistic competitors in long-run equilibrium will generally find that they are earning economic profits.

The labor supply curve will shift to the right under which of the following conditions?

Since the 1980s, the share of measured income received by the lowest fifth of families has risen.

In long-run equilibrium, a monopolistically competitive firm's demand curve will be tangent to its average cost curve.

Approximately ____ of national income is compensation received by owners of land, capital, and entrepreneurial skills.

Explain why under oligopoly conditions firms might wish to choose pricing and output strategies together.What is this arrangement called?

The U.S.commercial airline industry is a good example of an oligopolistic market.

If in an industry with one variable input, the marginal product of the input doubled and the output price fell in half, the demand for the input would:

What income groups are most likely to benefit from state and federal subsidies to higher education? Why?

Paul, a worker whose income currently places him among the poorest 20 percent of Americans, is more likely than not to remain in that lowest quintile for the next decade.

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 W_A. 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 wage law were enacted, in the market for computer programmers a ____ would result.

Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as:

There are significant technological barriers to entry that help make the automobile industry oligopolistic.