Question 1

A change in technology that increases the marginal physical product of an input will:

Accepted Answer

A) shift the input demand curve to the left. 
B) shift the input demand curve to the right. 
C) result in a movement down along the input demand curve. 
D) result in a movement up along the input demand curve. 
A) shift the input demand curve to the left. 
B) shift the input demand curve to the right. 
C) result in a movement down along the input demand curve. 
D) result in a movement up along the input demand curve.

Question 2

The amount of poverty in the United States ____ in the 1960s and ____ in the 1970s.

Accepted Answer

A) increased; decreased 
B) decreased; increased 
C) held relatively steady; increased 
D) decreased; held relatively steady 
E) increased; held relatively steady 
A) increased; decreased 
B) decreased; increased 
C) held relatively steady; increased 
D) decreased; held relatively steady 
E) increased; held relatively steady

Question 3

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Accepted Answer

Though government programs are introduce

Question 4

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 a wage rate of WA for teachers were imposed by the government on schools, the expected result would be:

Accepted Answer

A) a teacher shortage of Q3 - Q1. 
B) a teacher shortage of Q3 - Q2. 
C) a teacher surplus of Q2 - Q1. 
D) a teacher surplus of Q3 - Q1. 
E) a teacher shortage of Q2 - Q1. 
A) a teacher shortage of Q3 - Q1. 
B) a teacher shortage of Q3 - Q2. 
C) a teacher surplus of Q2 - Q1. 
D) a teacher surplus of Q3 - Q1. 
E) a teacher shortage of Q2 - Q1.

Question 5

Monopolistically competitive sellers have some ability to influence the price of their products.

Accepted Answer

A) True 
 B)False

Question 6

Collusive behavior guarantees economic profits in the long run for oligopolists.

Accepted Answer

A) True 
 B)False

Question 7

If labor demand rises faster than labor supply, it is expected that real wages will ____.

Accepted Answer

A) stay the same 
B) decrease 
C) increase 
D) Not enough information is available to determine the impact on real wage rates. 
A) stay the same 
B) decrease 
C) increase 
D) Not enough information is available to determine the impact on real wage rates.

Question 8

If the demand for softballs increases, one could expect the demand for leather to increase.This is due to the:

Accepted Answer

A) principle of diminishing marginal product. 
B) change in the opportunity cost of producing a softball. 
C) reduction in the cost of producing softballs. 
D) demand for an input being a derived demand. 
A) principle of diminishing marginal product. 
B) change in the opportunity cost of producing a softball. 
C) reduction in the cost of producing softballs. 
D) demand for an input being a derived demand.

Question 9

Labor unions create barriers to entry in certain work settings.

Accepted Answer

A) True 
 B)False

Question 10

Job amenities:

Accepted Answer

A) have no impact on the supply of labor. 
B) are not part of the compensation workers receive from employers. 
C) help determine the position of the labor supply curve. 
D) never affect the monetary wages paid to workers. 
A) have no impact on the supply of labor. 
B) are not part of the compensation workers receive from employers. 
C) help determine the position of the labor supply curve. 
D) never affect the monetary wages paid to workers.

Question 11

Other things being equal, if the quantity of labor supplied is less than the quantity of labor demanded, wages will tend to fall.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following factors leads to differences in income across individuals?

Accepted Answer

A) the level of skills possessed by an individual 
B) the quality of human capital and education 
C) preferences for work over leisure 
D) all of the above 
A) the level of skills possessed by an individual 
B) the quality of human capital and education 
C) preferences for work over leisure 
D) all of the above

Question 13

Labor unions:

Accepted Answer

A) have no influence over wages. 
B) can influence wages by restricting labor supply. 
C) are illegal in the United States. 
D) have significantly increased their membership in the last two decades. 
A) have no influence over wages. 
B) can influence wages by restricting labor supply. 
C) are illegal in the United States. 
D) have significantly increased their membership in the last two decades.

Question 14

The official poverty definition may ____ the level of poverty because it does not include ____.

Accepted Answer

A) overstate; cash benefits 
B) overstate; noncash benefits 
C) understate; cash benefits 
D) understate; noncash benefits 
A) overstate; cash benefits 
B) overstate; noncash benefits 
C) understate; cash benefits 
D) understate; noncash benefits

Question 15

At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor.

Accepted Answer

A) True 
 B)False

Question 16

Under a progressive tax system:

Accepted Answer

A) only the rich are taxed. 
B) higher marginal taxes are imposed on higher incomes. 
C) lower taxes are imposed on everyone. 
D) everyone pays the same percent of their income for tax. 
A) only the rich are taxed. 
B) higher marginal taxes are imposed on higher incomes. 
C) lower taxes are imposed on everyone. 
D) everyone pays the same percent of their income for tax.

Question 17

Which of the following countries has the least degree of income inequality?

Accepted Answer

A) Nigeria 
B) Brazil 
C) Mexico 
D) United States 
A) Nigeria 
B) Brazil 
C) Mexico 
D) United States

Question 18

When the economy is in a recession, ____ rises and poverty ____.

Accepted Answer

A) unemployment; decreases 
B) employment; decreases 
C) unemployment; increases 
D) employment; increases 
A) unemployment; decreases 
B) employment; decreases 
C) unemployment; increases 
D) employment; increases

Question 19

Which of the following most clearly illustrates the concept of "derived demand"?

Accepted Answer

A) An increase in the price of steak causes the demand for poultry to increase. 
B) An increase in the demand for new houses leads to an increase in the demand for construction workers. 
C) An increase in consumer income leads to an increase in the demand for services provided by the government. 
D) An increase in the demand for new cars causes the demand for used automobiles to rise. 
A) An increase in the price of steak causes the demand for poultry to increase. 
B) An increase in the demand for new houses leads to an increase in the demand for construction workers. 
C) An increase in consumer income leads to an increase in the demand for services provided by the government. 
D) An increase in the demand for new cars causes the demand for used automobiles to rise.

Question 20

The relationship between the wage rate and the quantity of labor that employers wish to hire 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.

A change in technology that increases the marginal physical product of an input will:

The amount of poverty in the United States in the 1960s and in the 1970s.

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Monopolistically competitive sellers have some ability to influence the price of their products.

Collusive behavior guarantees economic profits in the long run for oligopolists.

If labor demand rises faster than labor supply, it is expected that real wages will ____.

If the demand for softballs increases, one could expect the demand for leather to increase.This is due to the:

Labor unions create barriers to entry in certain work settings.

Job amenities:

Other things being equal, if the quantity of labor supplied is less than the quantity of labor demanded, wages will tend to fall.

Which of the following factors leads to differences in income across individuals?

Labor unions:

The official poverty definition may the level of poverty because it does not include .

At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor.

Under a progressive tax system:

Which of the following countries has the least degree of income inequality?

When the economy is in a recession, rises and poverty .

Which of the following most clearly illustrates the concept of "derived demand"?

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

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

A change in technology that increases the marginal physical product of an input will:

The amount of poverty in the United States ____ in the 1960s and ____ in the 1970s.

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Monopolistically competitive sellers have some ability to influence the price of their products.

Collusive behavior guarantees economic profits in the long run for oligopolists.

If labor demand rises faster than labor supply, it is expected that real wages will ____.

If the demand for softballs increases, one could expect the demand for leather to increase.This is due to the:

Labor unions create barriers to entry in certain work settings.

Job amenities:

Other things being equal, if the quantity of labor supplied is less than the quantity of labor demanded, wages will tend to fall.

Which of the following factors leads to differences in income across individuals?

Labor unions:

The official poverty definition may ____ the level of poverty because it does not include ____.

At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor.

Under a progressive tax system:

Which of the following countries has the least degree of income inequality?

When the economy is in a recession, ____ rises and poverty ____.

Which of the following most clearly illustrates the concept of "derived demand"?

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

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

The amount of poverty in the United States in the 1960s and in the 1970s.

The official poverty definition may the level of poverty because it does not include .

When the economy is in a recession, rises and poverty .