Question 1

Which of the following statements is true?

Accepted Answer

A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree initially earns more than a worker without a college degree but the latter surpasses the former in due course of time. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time. 
A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree initially earns more than a worker without a college degree but the latter surpasses the former in due course of time. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time.

Question 2

Which of the following professionals is likely to receive higher compensatory wages?

Accepted Answer

A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors 
A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors

Question 3

According to Figure 29.4, one of the possible outcomes of such offshoring is that:

Accepted Answer

A) the price of the good in question rises in the U.S.market. 
B) the demand for Indian labor declines. 
C) the demand for U.S.workers increase. 
D) the price of the good in question rises in the Indian market. 
E) the Indian workers replace the U.S.workers. 
A) the price of the good in question rises in the U.S.market. 
B) the demand for Indian labor declines. 
C) the demand for U.S.workers increase. 
D) the price of the good in question rises in the Indian market. 
E) the Indian workers replace the U.S.workers.

Question 4

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 AB, he maximizes his utility by choosing _____ hours of leisure and earns an income of _____.

Accepted Answer

A) 0;Y2 
B) L1;Y7 
C) L2;Y5 
D) L3;Y4 
E) L4;Y7 
A) 0;Y2 
B) L1;Y7 
C) L2;Y5 
D) L3;Y4 
E) L4;Y7

Question 5

Illegal immigrants to the U.S.usually charge higher wages than their American counterparts.

Accepted Answer

A) True 
 B)False

Question 6

If the minimum wage is set above the equilibrium wage by the government, there is an excess supply of labor in the market.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following can result in occupational crowding?

Accepted Answer

A) Illegal immigration 
B) Outsourcing of services 
C) Consumer prejudices, superstitions, and religious taboos 
D) Governmental policies and customs 
E) Statistical discrimination and imperfect information 
A) Illegal immigration 
B) Outsourcing of services 
C) Consumer prejudices, superstitions, and religious taboos 
D) Governmental policies and customs 
E) Statistical discrimination and imperfect information

Question 8

In a perfectly competitive labor market, the minimum wage policy adopted by the government raises employment.

Accepted Answer

A) True 
 B)False

Question 9

Disparate treatment refers to:

Accepted Answer

A) the treatment of individuals on the basis of their race, sex, color, religion, or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions. 
A) the treatment of individuals on the basis of their race, sex, color, religion, or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions.

Question 10

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
Refer to Figure 29.5.If a minimum wage of $10 is set by the government, then in market A:

Accepted Answer

A) a shortage of 20 labor hours is created. 
B) the quantity demanded for labor rises to 20 labor hours. 
C) a shortage of 15 labor hours is created. 
D) a surplus of 20 labor hours is created. 
E) a surplus of 10 labor hours is created. 
A) a shortage of 20 labor hours is created. 
B) the quantity demanded for labor rises to 20 labor hours. 
C) a shortage of 15 labor hours is created. 
D) a surplus of 20 labor hours is created. 
E) a surplus of 10 labor hours is created.

Question 11

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 B described in Figure 29.5 is a(n):

Accepted Answer

A) perfectly competitive labor market. 
B) monopolist market. 
C) oligopolistic market. 
D) monoposonistic market. 
E) monopolistically competitive market. 
A) perfectly competitive labor market. 
B) monopolist market. 
C) oligopolistic market. 
D) monoposonistic market. 
E) monopolistically competitive market.

Question 12

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Accepted Answer

A) True 
 B)False

Question 13

Getting the work done by some other firm at lower costs, when the firm is situated in some other country is called outsourcing.

Accepted Answer

A) True 
 B)False

Question 14

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   Refer to Figure 29.2.At the initial equilibrium (when demand is D1 and supply is S1), the wage rate and labor employment are:

Accepted Answer

A) $7 and 20 laborers. 
B) $8 and 30 laborers. 
C) $6 and 50 laborers. 
D) $5 and 20 laborers. 
E) $5 and 10 laborers. 
A) $7 and 20 laborers. 
B) $8 and 30 laborers. 
C) $6 and 50 laborers. 
D) $5 and 20 laborers. 
E) $5 and 10 laborers.

Exam 50: The Labor Market

Which of the following statements is true?

Which of the following professionals is likely to receive higher compensatory wages?

According to Figure 29.4, one of the possible outcomes of such offshoring is that:

Illegal immigrants to the U.S.usually charge higher wages than their American counterparts.

If the minimum wage is set above the equilibrium wage by the government, there is an excess supply of labor in the market.

Which of the following can result in occupational crowding?

In a perfectly competitive labor market, the minimum wage policy adopted by the government raises employment.

Disparate treatment refers to:

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 B described in Figure 29.5 is a(n):

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Getting the work done by some other firm at lower costs, when the firm is situated in some other country is called outsourcing.

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 Refer to Figure 29.2.At the initial equilibrium (when demand is D1 and supply is S1), the wage rate and labor employment are:

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 Refer to Figure 29.2.At the initial equilibrium (when demand is D₁and supply is S₁), the wage rate and labor employment are: