Question 1

Which of the following is not a cost of illegal immigration in the U.S.?

Accepted Answer

A) The adverse impact on unskilled workers 
B) The damage to national property caused during the process of immigration 
C) Additional expenditure on healthcare at emergency clinics and hospitals 
D) Expenditure on public education on the children of immigrants. 
E) Expenditure on employment insurance programs for the illegal immigrants. 
A) The adverse impact on unskilled workers 
B) The damage to national property caused during the process of immigration 
C) Additional expenditure on healthcare at emergency clinics and hospitals 
D) Expenditure on public education on the children of immigrants. 
E) Expenditure on employment insurance programs for the illegal immigrants.

Question 2

Which of the following is a major impact of offshoring?

Accepted Answer

A) Elimination of domestic jobs 
B) Elimination of jobs in foreign countries 
C) Creation of jobs in the domestic country 
D) An increase in the cost of production of domestic firms 
E) A reduction in the cost of production of foreign firms 
A) Elimination of domestic jobs 
B) Elimination of jobs in foreign countries 
C) Creation of jobs in the domestic country 
D) An increase in the cost of production of domestic firms 
E) A reduction in the cost of production of foreign firms

Question 3

The idea of comparable worth implies that wages are to be determined by the job characteristics and not merely by the interaction of demand and supply.

Accepted Answer

A) True 
 B)False

Question 4

Reliance on indicators of productivity such as education, experience, and test scores may keep some very good people from getting a job and may result in hiring unproductive people.This is called:

Accepted Answer

A) worker prejudice. 
B) statistical discrimination. 
C) crowding out. 
D) disparate treatment. 
E) comparable worth. 
A) worker prejudice. 
B) statistical discrimination. 
C) crowding out. 
D) disparate treatment. 
E) comparable worth.

Question 5

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
The Market A described in Figure 29.5 is a(n):

Accepted Answer

A) monopsonist market. 
B) monopolistic market. 
C) perfectly competitive labor market. 
D) monopolistically competitive market. 
E) oligopolistic market. 
A) monopsonist market. 
B) monopolistic market. 
C) perfectly competitive labor market. 
D) monopolistically competitive market. 
E) oligopolistic market.

Question 6

It has been proved empirically that marriage and children lowers a woman's ability to earn as much as a man.

Accepted Answer

A) True 
 B)False

Question 7

As the wage rate increases, the quantity supplied of labor in a market will:

Accepted Answer

A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant. 
A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant.

Question 8

Border enforcement if effective would raise the number of illegal immigrants into the United States.

Accepted Answer

A) True 
 B)False

Question 9

Why do skilled workers earn relatively higher wages than unskilled workers?

Accepted Answer

A) The marginal productivity of skilled workers is low. 
B) The marginal cost of hiring skilled workers is low. 
C) The supply of skilled workers is relatively less. 
D) There is an abundant supply of skilled workers. 
E) There is an abundant supply of unskilled workers. 
A) The marginal productivity of skilled workers is low. 
B) The marginal cost of hiring skilled workers is low. 
C) The supply of skilled workers is relatively less. 
D) There is an abundant supply of skilled workers. 
E) There is an abundant supply of unskilled workers.

Question 10

For economists, discrimination is difficult to rationalize because:

Accepted Answer

A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market, there is no such thing as discrimination. 
D) economists know that in the real world, personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate. 
A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market, there is no such thing as discrimination. 
D) economists know that in the real world, personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate.

Question 11

The greatest number of recent immigrants to the U.S.come from Mexico because of:

Accepted Answer

A) political insecurity in Mexico. 
B) religious insecurity in Mexico. 
C) proximity and wage differentials. 
D) racial discrimination in Mexico. 
E) greater social security in the United States. 
A) political insecurity in Mexico. 
B) religious insecurity in Mexico. 
C) proximity and wage differentials. 
D) racial discrimination in Mexico. 
E) greater social security in the United States.

Question 12

An example of human capital is the purchase of a computer to help accountants.

Accepted Answer

A) True 
 B)False

Question 13

Why has the inequality of income become greater?

Accepted Answer

A) The demand for skilled workers has declined. 
B) The demand for skilled workers has remained constant and the demand for unskilled workers has declined. 
C) The government policies went against the unskilled workers. 
D) The demand for skilled workers has increased and the demand for unskilled workers has not kept pace. 
E) The demand for unskilled workers increased as they could be hired for lower wages. 
A) The demand for skilled workers has declined. 
B) The demand for skilled workers has remained constant and the demand for unskilled workers has declined. 
C) The government policies went against the unskilled workers. 
D) The demand for skilled workers has increased and the demand for unskilled workers has not kept pace. 
E) The demand for unskilled workers increased as they could be hired for lower wages.

Question 14

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 29.4   In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
According to Figure 29.4, the price and quantity of the good if produced by U.S.would be _____ and _____ respectively.

Accepted Answer

A) P1;Q1 
B) P3;Q3 
C) P2;Q4  
D) P2;Q2 
E) P4;Q4 
A) P1;Q1 
B) P3;Q3 
C) P2;Q4  
D) P2;Q2 
E) P4;Q4

Question 15

Investment in human capital implies:

Accepted Answer

A) investment on machines, technological development, and equipments. 
B) expenses on education. 
C) expenses on paying interest for hiring real capital. 
D) expenses related to the purchase of land. 
E) profit of the entrepreneurs. 
A) investment on machines, technological development, and equipments. 
B) expenses on education. 
C) expenses on paying interest for hiring real capital. 
D) expenses related to the purchase of land. 
E) profit of the entrepreneurs.

Question 16

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   In Figure 29.2, the initial labor supply is S1 , and the labor demand is D1.If the wage is $6, which of the following is correct?

Accepted Answer

A) The actual wage is above the equilibrium wage. 
B) There is a shortage of 30 workers. 
C) There is a shortage of 20 workers. 
D) There is a shortage of 10 workers. 
E) The market is in equilibrium. 
A) The actual wage is above the equilibrium wage. 
B) There is a shortage of 30 workers. 
C) There is a shortage of 20 workers. 
D) There is a shortage of 10 workers. 
E) The market is in equilibrium.

Question 17

Since we all like to get richer, so when wage rate increases we always like to work longer hours to make more income.

Accepted Answer

A) True 
 B)False

Question 18

The labor market is in equilibrium when:

Accepted Answer

A) the demand curve lies above the supply curve. 
B) both demand and supply curves are positively sloped. 
C) both demand and supply curves are negatively sloped. 
D) the demand curve intersects the supply curve. 
E) the demand curve is negatively sloped but the supply curve is positively sloped. 
A) the demand curve lies above the supply curve. 
B) both demand and supply curves are positively sloped. 
C) both demand and supply curves are negatively sloped. 
D) the demand curve intersects the supply curve. 
E) the demand curve is negatively sloped but the supply curve is positively sloped.

Question 19

Why does the labor market have more than one equilibrium wage rate?

Accepted Answer

A) Workers differ in their productivities. 
B) Productivity of the workers initially increase but later decline. 
C) The labor demand curve is backward bending. 
D) Marginal revenue product of the different inputs used by firms vary. 
E) Employers compete among themselves to hire the best workers. 
A) Workers differ in their productivities. 
B) Productivity of the workers initially increase but later decline. 
C) The labor demand curve is backward bending. 
D) Marginal revenue product of the different inputs used by firms vary. 
E) Employers compete among themselves to hire the best workers.

Question 20

Which of the following is an impact of the restriction on immigration on the domestic firms?

Accepted Answer

A) The domestic firms would produce more and reap greater profits. 
B) The domestic firms would hire more unskilled laborers at lower wages. 
C) The domestic firms would charge low prices for their products. 
D) The domestic firms would have to pay higher wages and make less profit. 
E) The domestic firms would make above normal profits in the long run. 
A) The domestic firms would produce more and reap greater profits. 
B) The domestic firms would hire more unskilled laborers at lower wages. 
C) The domestic firms would charge low prices for their products. 
D) The domestic firms would have to pay higher wages and make less profit. 
E) The domestic firms would make above normal profits in the long run.

Exam 50: The Labor Market

Which of the following is not a cost of illegal immigration in the U.S.?

Which of the following is a major impact of offshoring?

The idea of comparable worth implies that wages are to be determined by the job characteristics and not merely by the interaction of demand and supply.

Reliance on indicators of productivity such as education, experience, and test scores may keep some very good people from getting a job and may result in hiring unproductive people.This is called:

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 The Market A described in Figure 29.5 is a(n):

It has been proved empirically that marriage and children lowers a woman's ability to earn as much as a man.

As the wage rate increases, the quantity supplied of labor in a market will:

Border enforcement if effective would raise the number of illegal immigrants into the United States.

Why do skilled workers earn relatively higher wages than unskilled workers?

For economists, discrimination is difficult to rationalize because:

The greatest number of recent immigrants to the U.S.come from Mexico because of:

An example of human capital is the purchase of a computer to help accountants.

Why has the inequality of income become greater?

Investment in human capital implies:

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 In Figure 29.2, the initial labor supply is S1 , and the labor demand is D1.If the wage is $6, which of the following is correct?

Since we all like to get richer, so when wage rate increases we always like to work longer hours to make more income.

The labor market is in equilibrium when:

Why does the labor market have more than one equilibrium wage rate?

Which of the following is an impact of the restriction on immigration on the domestic firms?

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 given below shows the demand curves (D₁ and D₂)and supply curves (S₁ and S₂)of labor in the labor market. Figure: 29.2 In Figure 29.2, the initial labor supply is S₁, and the labor demand is D₁.If the wage is $6, which of the following is correct?