Question 1

When white males resist to share responsibilities with members of a minority group, it is termed as:

Accepted Answer

A) employer prejudice. 
B) consumer prejudice 
C) worker prejudice. 
D) statistical discrimination. 
E) occupational segregation. 
A) employer prejudice. 
B) consumer prejudice 
C) worker prejudice. 
D) statistical discrimination. 
E) occupational segregation. C

Question 2

An increase in the income tax rates:

Accepted Answer

A) makes the labor supply curve more inelastic. 
B) increases the opportunity cost of leisure. 
C) lowers the opportunity cost of leisure. 
D) shifts the labor supply curve to the right. 
E) shifts the labor demand curve to the right. 
A) makes the labor supply curve more inelastic. 
B) increases the opportunity cost of leisure. 
C) lowers the opportunity cost of leisure. 
D) shifts the labor supply curve to the right. 
E) shifts the labor demand curve to the right. C

Question 3

The figure below shows the supply curve for labor. Figure 29.1   Refer to Figure 29.1.When wage rate increases from W2 to W3 :

Accepted Answer

A) quantity of labor supplied increases from Q2 to Q4. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q3. 
E) quantity of labor supplied increases from Q3 to Q5. 
A) quantity of labor supplied increases from Q2 to Q4. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q3. 
E) quantity of labor supplied increases from Q3 to Q5. E

Question 4

The figures given below show the demand (D)and supply (S)curves of labor in two different markets. Figure 29.3   From Figure 29.3, calculate the amount of the wage differential.

Accepted Answer

A) $6 
B) $18 
C) $2 
D) $20 
E) $15 
A) $6 
B) $18 
C) $2 
D) $20 
E) $15

Question 5

The concept of comparable worth:

Accepted Answer

A) is that pay ought to be determined by job characteristics rather than by supply and demand. 
B) is that pay ought to be determined by supply and demand rather than by job characteristics. 
C) has made hiring practices much simpler for employers. 
D) asserts that market-determined wages are the only appropriate way in which to allocate pay. 
E) is easy to implement once a new worker has been hired. 
A) is that pay ought to be determined by job characteristics rather than by supply and demand. 
B) is that pay ought to be determined by supply and demand rather than by job characteristics. 
C) has made hiring practices much simpler for employers. 
D) asserts that market-determined wages are the only appropriate way in which to allocate pay. 
E) is easy to implement once a new worker has been hired.

Question 6

Which of the following statements about employer prejudice is true?

Accepted Answer

A) It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate. 
B) Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly. 
C) Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices. 
D) Legislation has ended employer prejudice in the United States. 
E) Employer prejudice occurs only in low-paying jobs. 
A) It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate. 
B) Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly. 
C) Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices. 
D) Legislation has ended employer prejudice in the United States. 
E) Employer prejudice occurs only in low-paying jobs.

Question 7

If the tax rate increases with increase in income, the income tax structure is said to be _____.

Accepted Answer

A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed 
A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed

Question 8

All of the following are reasons for immigration to a foreign country, except that:

Accepted Answer

A) the domestic country may be politically repressive. 
B) there is an abundance of employment opportunities in the domestic country. 
C) the domestic country is economically stagnant. 
D) there is no scope for upward mobility in the domestic country. 
E) there are religious prosecutions. 
A) the domestic country may be politically repressive. 
B) there is an abundance of employment opportunities in the domestic country. 
C) the domestic country is economically stagnant. 
D) there is no scope for upward mobility in the domestic country. 
E) there are religious prosecutions.

Question 9

A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Accepted Answer

A) True 
 B)False

Question 10

An individual is induced to change his/her occupation if:

Accepted Answer

A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income increases in the current occupation is as good as another occupation. 
D) he/she has devoted a lot of money, time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high. 
A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income increases in the current occupation is as good as another occupation. 
D) he/she has devoted a lot of money, time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high.

Question 11

The figure given below shows the income-leisure trade off of an individual. Figure 29.6   AB and AC: Income constraints of the individual
I1, I2, and I3 curves show the income leisure choices of the individual.
In Figure 29.6, if the income constraint of the individual is given by the line AC, he maximizes his utility by choosing _____ hours of leisure and _____ units of income.

Accepted Answer

A) L1;Y5 
B) 0;Y7 
C) L3;Y3 
D) L2;Y3 
E) L4;Y4 
A) L1;Y5 
B) 0;Y7 
C) L3;Y3 
D) L2;Y3 
E) L4;Y4

Question 12

The figure below shows the supply curve for labor. Figure 29.1   Refer to Figure 29.1.When wage rate increases from W3 to W5:

Accepted Answer

A) quantity of labor supplied increases from Q1to Q4. 
B) quantity of labor supplied decreases from Q5 to Q2. 
C) quantity of labor supplied increases from Q2 to Q4. 
D) quantity of labor supplied decreases from Q4 to Q2. 
E) quantity of labor supplied increases from Q1 to Q54. 
A) quantity of labor supplied increases from Q1to Q4. 
B) quantity of labor supplied decreases from Q5 to Q2. 
C) quantity of labor supplied increases from Q2 to Q4. 
D) quantity of labor supplied decreases from Q4 to Q2. 
E) quantity of labor supplied increases from Q1 to Q54.

Question 13

An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

Accepted Answer

A) True 
 B)False

Question 14

In 2001, Alex Rodriguez, a baseball player, was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an instance of employer prejudice that leads to wage differential?

Accepted Answer

A) Employers attempting to hire workers based on their marginal productivities 
B) Employers attempting to hire only good looking female workers 
C) Workers attempting to work for only certain particular organizations 
D) Producers purchasing raw materials from selective suppliers 
E) Workers ready to work for any employer in the labor market 
A) Employers attempting to hire workers based on their marginal productivities 
B) Employers attempting to hire only good looking female workers 
C) Workers attempting to work for only certain particular organizations 
D) Producers purchasing raw materials from selective suppliers 
E) Workers ready to work for any employer in the labor market

Question 16

The following figures show the demand and supply of labor in two different types of labor market. Figure 29.5   In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
In Figure 29.5, the equilibrium wage rate and the level of employment in Market A are _____ and _____ respectively.

Accepted Answer

A) $8;15 hours. 
B) $10;10 hours. 
C) $10;20 hours. 
D) $12;25 hours. 
E) $6;20 hours. 
A) $8;15 hours. 
B) $10;10 hours. 
C) $10;20 hours. 
D) $12;25 hours. 
E) $6;20 hours.

Question 17

Which of the following are benefits created by the immigrants?

Accepted Answer

A) Increase in educational expenditures on public schools for their children 
B) Increase in the wages of unskilled laborers 
C) Reduction in costs for some firms 
D) Increased expenditures on health care for illegal immigrants at emergency clinics and hospitals 
E) Increase in the wages of skilled workers 
A) Increase in educational expenditures on public schools for their children 
B) Increase in the wages of unskilled laborers 
C) Reduction in costs for some firms 
D) Increased expenditures on health care for illegal immigrants at emergency clinics and hospitals 
E) Increase in the wages of skilled workers

Question 18

With illegal immigration the unskilled labor supply curve:

Accepted Answer

A) shifts to the left. 
B) becomes perfectly inelastic. 
C) becomes perfectly elastic. 
D) shifts to the right. 
E) becomes non-existent. 
A) shifts to the left. 
B) becomes perfectly inelastic. 
C) becomes perfectly elastic. 
D) shifts to the right. 
E) becomes non-existent.

Question 19

Which of the following is not a reason for the wage differential between females and males?

Accepted Answer

A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours. 
A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours.

Question 20

The U.S.government has time and again raised the minimum wage to:

Accepted Answer

A) ensure that the skilled workers make a decent living. 
B) increase the elasticity of labor supply. 
C) earn greater tax revenue. 
D) ensure that the unskilled workers make a decent living. 
E) safeguard the interests of the employers. 
A) ensure that the skilled workers make a decent living. 
B) increase the elasticity of labor supply. 
C) earn greater tax revenue. 
D) ensure that the unskilled workers make a decent living. 
E) safeguard the interests of the employers.

Exam 50: The Labor Market

When white males resist to share responsibilities with members of a minority group, it is termed as:

An increase in the income tax rates:

The figure below shows the supply curve for labor. Figure 29.1 Refer to Figure 29.1.When wage rate increases from W2 to W3 :

The figures given below show the demand (D)and supply (S)curves of labor in two different markets. Figure 29.3 From Figure 29.3, calculate the amount of the wage differential.

The concept of comparable worth:

Which of the following statements about employer prejudice is true?

If the tax rate increases with increase in income, the income tax structure is said to be _____.

All of the following are reasons for immigration to a foreign country, except that:

A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

An individual is induced to change his/her occupation if:

The figure below shows the supply curve for labor. Figure 29.1 Refer to Figure 29.1.When wage rate increases from W3 to W5:

An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

In 2001, Alex Rodriguez, a baseball player, was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect.

Which of the following is an instance of employer prejudice that leads to wage differential?

Which of the following are benefits created by the immigrants?

With illegal immigration the unskilled labor supply curve:

Which of the following is not a reason for the wage differential between females and males?

The U.S.government has time and again raised the minimum wage to:

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Economic Growth

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

The figure below shows the supply curve for labor. Figure 29.1 Refer to Figure 29.1.When wage rate increases from W₂to W₃:

The figure below shows the supply curve for labor. Figure 29.1 Refer to Figure 29.1.When wage rate increases from W₃ to W₅: