Question 1

If the quantity demanded for labor is more than the quantity supplied, there will be unemployment.

Accepted Answer

A) True 
 B)False

Question 2

Supporters of comparable worth claim that market correctly allocates the workers in their best paid works.

Accepted Answer

A) True 
 B)False

Question 3

A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of illegal immigrants?

Accepted Answer

A) They help raise the unemployment rate of the United States. 
B) They take away jobs from Americans. 
C) They do not affect the equilibrium wage of the U.S.unskilled labor market. 
D) They help some firms lower operating costs, earn more profit, and produce more. 
E) They reduce the supply of unskilled labor in the United States. 
A) They help raise the unemployment rate of the United States. 
B) They take away jobs from Americans. 
C) They do not affect the equilibrium wage of the U.S.unskilled labor market. 
D) They help some firms lower operating costs, earn more profit, and produce more. 
E) They reduce the supply of unskilled labor in the United States.

Question 5

Which of the following best explains the shape of the individual labor-supply curve?

Accepted Answer

A) The individual labor-supply curve is exactly like any supply curve, it always has a positive slope. 
B) The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure. 
C) The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. 
D) The individual labor-supply curve must be vertical because each person can work only eight hours per day. 
E) The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive. 
A) The individual labor-supply curve is exactly like any supply curve, it always has a positive slope. 
B) The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure. 
C) The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. 
D) The individual labor-supply curve must be vertical because each person can work only eight hours per day. 
E) The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.

Question 6

The ratio of the median income of college-to high school-educated workers is called the _____.

Accepted Answer

A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap 
A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap

Question 7

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

Accepted Answer

A) True 
 B)False

Question 8

The burden of a tax is mainly borne by the buyer if:

Accepted Answer

A) the supply of the good is perfectly price elastic. 
B) if the supply of the good is relatively price elastic. 
C) if the demand for the good is relatively price elastic. 
D) if the demand for the good is relatively price inelastic. 
E) if the demand for the good is perfectly price elastic. 
A) the supply of the good is perfectly price elastic. 
B) if the supply of the good is relatively price elastic. 
C) if the demand for the good is relatively price elastic. 
D) if the demand for the good is relatively price inelastic. 
E) if the demand for the good is perfectly price elastic.

Question 9

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following refers to human capital?

Accepted Answer

A) Money spent by business to acquire labor 
B) The acquired skill and productivity of workers 
C) The plant and equipment used with labor 
D) Money spent on education. 
E) Money that workers save 
A) Money spent by business to acquire labor 
B) The acquired skill and productivity of workers 
C) The plant and equipment used with labor 
D) Money spent on education. 
E) Money that workers save

Question 11

The figure given below shows the demand curves (D1 and D2)and supply curves (S1 and S2)of labor in the labor market. Figure: 29.2   According to Figure 29.2, assume that the market is in an initial equilibrium in which the labor supply is S1 and the labor demand is D1.Then labor supply shifts from S1 to S2 but the wage remains at its previous equilibrium level.Which of the following is true?

Accepted Answer

A) The economy is still in equilibrium. 
B) There is a shortage of 20 workers. 
C) There is a shortage of 30 workers. 
D) There is a surplus of 30 workers. 
E) There is a surplus of 20 workers. 
A) The economy is still in equilibrium. 
B) There is a shortage of 20 workers. 
C) There is a shortage of 30 workers. 
D) There is a surplus of 30 workers. 
E) There is a surplus of 20 workers.

Question 12

People tend to remain in those occupations that require continuous time and financial commitments to remain productive.

Accepted Answer

A) True 
 B)False

Question 13

One of the major impacts of restricting immigration is that the:

Accepted Answer

A) prices of the products produced by unskilled laborers will decline. 
B) prices of the products produced by unskilled labor will increase. 
C) supply of labor in agriculture will increase. 
D) supply of labor in the industrial sector will rise. 
E) government's expenditure on education and health will rise. 
A) prices of the products produced by unskilled laborers will decline. 
B) prices of the products produced by unskilled labor will increase. 
C) supply of labor in agriculture will increase. 
D) supply of labor in the industrial sector will rise. 
E) government's expenditure on education and health will rise.

Question 14

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

Accepted Answer

A) True 
 B)False

Question 15

It is said that a wage increase can have two opposing effects.Which of the following captures these two effects?

Accepted Answer

A) A backward-bending labor-supply curve 
B) A perfectly elastic labor-supply curve 
C) A perfectly inelastic labor-supply curve 
D) The inability of average wage earners to comprehend the complexities of economic principles. 
E) A backward-bending labor-demand curve 
A) A backward-bending labor-supply curve 
B) A perfectly elastic labor-supply curve 
C) A perfectly inelastic labor-supply curve 
D) The inability of average wage earners to comprehend the complexities of economic principles. 
E) A backward-bending labor-demand curve

Question 16

Offshoring does not affect the percentage of U.S.workers employed in manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

The policy of comparable worth has been more successful in the public sector than in the private sector.

Accepted Answer

A) True 
 B)False

Question 18

Suppose a tax rate of 10 percent applies to all income up to $20, 000 a year, income above $20, 000 up to $50, 000 a year is taxed at a rate of 15%, and income above $50, 000 a year is taxed at 20%.Calculate the absolute amount of tax paid by a person whose annual income is $30, 000.

Accepted Answer

A) $2, 000 
B) $2, 500 
C) $4, 500 
D) $4, 000 
E) $3, 500 
A) $2, 000 
B) $2, 500 
C) $4, 500 
D) $4, 000 
E) $3, 500

Question 19

Which of the following determines comparable worth of a particular job?

Accepted Answer

A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory 
A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory

Question 20

If an employer is a monopsonist, the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

Accepted Answer

A) True 
 B)False

Exam 50: The Labor Market

If the quantity demanded for labor is more than the quantity supplied, there will be unemployment.

Supporters of comparable worth claim that market correctly allocates the workers in their best paid works.

A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers.

Which of the following is true of illegal immigrants?

Which of the following best explains the shape of the individual labor-supply curve?

The ratio of the median income of college-to high school-educated workers is called the _____.

The quantity of labor supplied by a particular wage earner will always increase as long as the wage rate increases.

The burden of a tax is mainly borne by the buyer if:

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Which of the following refers to human capital?

People tend to remain in those occupations that require continuous time and financial commitments to remain productive.

One of the major impacts of restricting immigration is that the:

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

It is said that a wage increase can have two opposing effects.Which of the following captures these two effects?

Offshoring does not affect the percentage of U.S.workers employed in manufacturing.

The policy of comparable worth has been more successful in the public sector than in the private sector.

Suppose a tax rate of 10 percent applies to all income up to $20, 000 a year, income above $20, 000 up to $50, 000 a year is taxed at a rate of 15%, and income above $50, 000 a year is taxed at 20%.Calculate the absolute amount of tax paid by a person whose annual income is $30, 000.

Which of the following determines comparable worth of a particular job?

If an employer is a monopsonist, the imposition of a minimum wage set at a level that is less than the marginal revenue product but greater than the wage rate that the monopsonist wants to pay may actually increase the level of employment.

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

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