Question 1

When people prefer to obtain medical, or legal services from white males, although they charge high prices for their services, it is termed as:

Accepted Answer

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

Question 2

If employers have imperfect information about job applicants, it may be rational for them to use:

Accepted Answer

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

Question 3

The principal argument against comparable worth is that:

Accepted Answer

A) men and women differ largely in terms of their productivities. 
B) market does not function correctly and leads to inefficient allocation of resources. 
C) market allocates scarce resources to their most highly valued uses in the most efficient manner. 
D) demand and supply do not allocate workers to where they are needed the most. 
E) legislation by the government are often appropriate as it processes all the available information correctly. 
A) men and women differ largely in terms of their productivities. 
B) market does not function correctly and leads to inefficient allocation of resources. 
C) market allocates scarce resources to their most highly valued uses in the most efficient manner. 
D) demand and supply do not allocate workers to where they are needed the most. 
E) legislation by the government are often appropriate as it processes all the available information correctly.

Question 4

Wage differentials exist because not all workers and all jobs are alike.

Accepted Answer

A) True 
 B)False

Question 5

The wage gap between males and females is decreasing, and will be finally eradicated because the average male in the labor force has equal marketable human capital as the average female.

Accepted Answer

A) True 
 B)False

Question 6

According to the U.S.population surveys conducted by the census, since 1980 the total foreign-born population as a percentage of the total U.S.population:

Accepted Answer

A) has not changed. 
B) has declined. 
C) has risen. 
D) has been stable. 
E) has fallen to zero. 
A) has not changed. 
B) has declined. 
C) has risen. 
D) has been stable. 
E) has fallen to zero.

Question 7

Which of the following reasons will most likely explain why discrimination that is notrelated to personal prejudice can occur?

Accepted Answer

A) A desire to avoid associating with certain groups of people 
B) A lack of communication skills of workers seeking jobs 
C) A lack of information 
D) A lack of proper technical expertise 
E) Too many people applying for the same job 
A) A desire to avoid associating with certain groups of people 
B) A lack of communication skills of workers seeking jobs 
C) A lack of information 
D) A lack of proper technical expertise 
E) Too many people applying for the same job

Question 8

Why is the market supply curve of labor positively sloped though individual supply curves are backward-bending beyond a certain wage rate?

Accepted Answer

A) People tend to work less when wage rate increases. 
B) Every individual laborer has equal trade offs between labor and leisure. 
C) People tend to substitute labor for leisure. 
D) People work more for the fear of losing their jobs and becoming unemployed. 
E) All the individual supply curves do not bend backward at one particular wage rate. 
A) People tend to work less when wage rate increases. 
B) Every individual laborer has equal trade offs between labor and leisure. 
C) People tend to substitute labor for leisure. 
D) People work more for the fear of losing their jobs and becoming unemployed. 
E) All the individual supply curves do not bend backward at one particular wage rate.

Question 9

The term compensating wage differential refers to:

Accepted Answer

A) the bargaining capacity of a monoposonist in the labor market. 
B) wage differences that arise from differences in the risk involved in different jobs 
C) whether or not a firm offers a 401K plan to all its employees or just some employees. 
D) wage differences that arise from difference in productivity of the workers in a firm. 
E) the negotiating powers of the trade union. 
A) the bargaining capacity of a monoposonist in the labor market. 
B) wage differences that arise from differences in the risk involved in different jobs 
C) whether or not a firm offers a 401K plan to all its employees or just some employees. 
D) wage differences that arise from difference in productivity of the workers in a firm. 
E) the negotiating powers of the trade union.

Question 10

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.
In Figure 29.4, the price and quantity of the good if produced by India would be _____ and _____ respectively.

Accepted Answer

A) P3;Q3 
B) P4;Q4 
C) P1;Q1 
D) P5;Q5 
E) P2;Q2 
A) P3;Q3 
B) P4;Q4 
C) P1;Q1 
D) P5;Q5 
E) P2;Q2

Question 11

The labor demand curve is based on the firm's:

Accepted Answer

A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curves. 
D) average cost curves. 
E) marginal revenue product curve. 
A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curves. 
D) average cost curves. 
E) marginal revenue product curve.

Question 12

Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

Accepted Answer

A) True 
 B)False

Question 13

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 29.7   In Figure 29.7, assume that the wage rates of the micro and the macro economists are determined by the aggregate demand and supply curves.The levels of employment for micro- and macro economists are _____ and _____ respectively:

Accepted Answer

A) 100;40. 
B) 100;50. 
C) 90;50. 
D) 100;50.0 
E) 110;60 
A) 100;40. 
B) 100;50. 
C) 90;50. 
D) 100;50.0 
E) 110;60

Question 14

The greater the opportunity cost of any particular occupation, the smaller the number of people who will select that occupation.

Accepted Answer

A) True 
 B)False

Question 15

People leave their home country and go to another country to live primarily because they seek a higher quality of life.

Accepted Answer

A) True 
 B)False

Question 16

When women and members of other minority groups are forced into occupations where they are unable to obtain the human capital necessary to compete for high paying jobs, it is termed as statistical discrimination.

Accepted Answer

A) True 
 B)False

Question 17

The principal argument against comparable worth is that the demand and supply of labor in the labor market allocates workers to where they are needed the most.

Accepted Answer

A) True 
 B)False

Question 18

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 29.7   In Figure 29.7, assume that micro- and macroeconomists must be paid the same because of comparable-worth laws.If the wage is $12, then:

Accepted Answer

A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium. 
A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium.

Question 19

When people are separated into different jobs on the basis of sex, it is referred to as:

Accepted Answer

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

Question 20

The distortions created by income taxes could be minimized by changing the progressive tax system to a flat tax system.

Accepted Answer

A) True 
 B)False

Exam 50: The Labor Market

When people prefer to obtain medical, or legal services from white males, although they charge high prices for their services, it is termed as:

If employers have imperfect information about job applicants, it may be rational for them to use:

The principal argument against comparable worth is that:

Wage differentials exist because not all workers and all jobs are alike.

The wage gap between males and females is decreasing, and will be finally eradicated because the average male in the labor force has equal marketable human capital as the average female.

According to the U.S.population surveys conducted by the census, since 1980 the total foreign-born population as a percentage of the total U.S.population:

Which of the following reasons will most likely explain why discrimination that is notrelated to personal prejudice can occur?

Why is the market supply curve of labor positively sloped though individual supply curves are backward-bending beyond a certain wage rate?

The term compensating wage differential refers to:

The labor demand curve is based on the firm's:

Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

The greater the opportunity cost of any particular occupation, the smaller the number of people who will select that occupation.

People leave their home country and go to another country to live primarily because they seek a higher quality of life.

When women and members of other minority groups are forced into occupations where they are unable to obtain the human capital necessary to compete for high paying jobs, it is termed as statistical discrimination.

The principal argument against comparable worth is that the demand and supply of labor in the labor market allocates workers to where they are needed the most.

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 29.7 In Figure 29.7, assume that micro- and macroeconomists must be paid the same because of comparable-worth laws.If the wage is $12, then:

When people are separated into different jobs on the basis of sex, it is referred to as:

The distortions created by income taxes could be minimized by changing the progressive tax system to a flat tax system.

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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