Question 1

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 2

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 15.7   In Figure 15.7, 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) 110;60 
A) 100;40. 
B) 100;50. 
C) 90;50. 
D) 110;60

Question 3

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 4

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 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

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 14

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 15

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 16

According to Figure 15.4, 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 17

The intention of a minimum wage is to:

Accepted Answer

A) keep the wage rate at par with the equilibrium wage. 
B) keep the wage rate below the equilibrium wage. 
C) raise the wage rate above the equilibrium wage. 
D) keep the wage rate at par with the wage of the skilled workers. 
E) make the wages of the skilled and unskilled workers equal. 
A) keep the wage rate at par with the equilibrium wage. 
B) keep the wage rate below the equilibrium wage. 
C) raise the wage rate above the equilibrium wage. 
D) keep the wage rate at par with the wage of the skilled workers. 
E) make the wages of the skilled and unskilled workers equal.

Question 18

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 19

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 20

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

Exam 26: The Labor Market

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:

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

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

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

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

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

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

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

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

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

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

Disparate treatment refers to:

With illegal immigration the unskilled labor supply curve:

According to Figure 15.4, one of the possible outcomes of such offshoring is that:

The intention of a minimum wage is to:

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

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

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.

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

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

The Labor Market

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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