Question 1

For a nonparticipant,the substitution effect is and the income effect is.

Accepted Answer

A)  zero,zero 
B)  zero,negative 
C)  zero,positive 
D)  negative,zero 
E)  positive,zero 
A)  zero,zero 
B)  zero,negative 
C)  zero,positive 
D)  negative,zero 
E)  positive,zero

Question 2

What is Mark's baseline utility?

Accepted Answer

A)  42 utils 
B)  100 utils 
C)  119 utils 
D)  168 utils 
E)  200 utils 
A)  42 utils 
B)  100 utils 
C)  119 utils 
D)  168 utils 
E)  200 utils

Question 3

If Sarah works 8 hours a day,what is the amount she can spend on consumption in one day (assume she also can spend her initial wealth)?

Accepted Answer

A)  $300 
B)  $320 
C)  $620 
D)  $800 
E)  $1020 
A)  $300 
B)  $320 
C)  $620 
D)  $800 
E)  $1020

Question 4

What is Mark's marginal utility of consumption,   ?

Accepted Answer

A)  0.8 utils per dollar 
B)  1.1 utils per dollar 
C)  1.7 utils per dollar 
D)  2.5 utils per dollar 
E)  5.0 utils per dollar 
A)  0.8 utils per dollar 
B)  1.1 utils per dollar 
C)  1.7 utils per dollar 
D)  2.5 utils per dollar 
E)  5.0 utils per dollar

Question 5

If a budget constraint is kinked,budget sets lead to a clustering of equilibrium points,while budget sets lead to divergence.

Accepted Answer

A)  convex,convex 
B)  concave,concave 
C)  convex,concave 
D)  concave,convex 
E)  linear,convex 
A)  convex,convex 
B)  concave,concave 
C)  convex,concave 
D)  concave,convex 
E)  linear,convex

Question 6

What is Mark's marginal utility of leisure,   ?

Accepted Answer

A)  0.8 utils per hour 
B)  1.1 utils per hour 
C)  1.7 utils per hour 
D)  2.5 utils per hour 
E)  5.0 utils per hour 
A)  0.8 utils per hour 
B)  1.1 utils per hour 
C)  1.7 utils per hour 
D)  2.5 utils per hour 
E)  5.0 utils per hour

Question 7

A decrease in an individual's wealth causes the budget set to experience

Accepted Answer

A)  a parallel shift outward. 
B)  a parallel shift inward. 
C)  a no change. 
D)  a pivot upward. 
E)  a pivot downward. 
A)  a parallel shift outward. 
B)  a parallel shift inward. 
C)  a no change. 
D)  a pivot upward. 
E)  a pivot downward.

Question 8

An example of a worker adjusting along the intensive margin is when

Accepted Answer

A)  a worker decides to join the labor force. 
B)  a worker,who is currently not working,chooses to reject a job offer. 
C)  a worker decides to leave the labor force. 
D)  a worker's wage is cut,so he switches jobs but works the same number of hours. 
E)  a worker's wage is cut,so he works fewer hours. 
A)  a worker decides to join the labor force. 
B)  a worker,who is currently not working,chooses to reject a job offer. 
C)  a worker decides to leave the labor force. 
D)  a worker's wage is cut,so he switches jobs but works the same number of hours. 
E)  a worker's wage is cut,so he works fewer hours.

Question 9

Which of the following is true about point R on the indifference curve   ?

Accepted Answer

A)  It corresponds to the utility maximizing solution. 
B)  It represents a corner solution where the worker chooses to remain out of the labor force. 
C)  It is not feasible given the constraints. 
D)  It satisfies the tangency condition. 
E)  It represents a feasible outcome that does not maximize the worker's utility. 
A)  It corresponds to the utility maximizing solution. 
B)  It represents a corner solution where the worker chooses to remain out of the labor force. 
C)  It is not feasible given the constraints. 
D)  It satisfies the tangency condition. 
E)  It represents a feasible outcome that does not maximize the worker's utility.

Question 10

What is Sarah's total utility if she works 8 hours and spends all her earned income but not her initial wealth (assume her time endowment,T,is a day,so T = 24 hours)?

Accepted Answer

A)  11 utils 
B)  72 utils 
C)  100 utils 
D)  101 utils 
E)  150 utils 
A)  11 utils 
B)  72 utils 
C)  100 utils 
D)  101 utils 
E)  150 utils

For a nonparticipant,the substitution effect is and the income effect is.

What is Mark's baseline utility?

If Sarah works 8 hours a day,what is the amount she can spend on consumption in one day (assume she also can spend her initial wealth)?

What is Mark's marginal utility of consumption, ?

If a budget constraint is kinked,budget sets lead to a clustering of equilibrium points,while budget sets lead to divergence.

What is Mark's marginal utility of leisure, ?

A decrease in an individual's wealth causes the budget set to experience

An example of a worker adjusting along the intensive margin is when

Which of the following is true about point R on the indifference curve ?

What is Sarah's total utility if she works 8 hours and spends all her earned income but not her initial wealth (assume her time endowment,T,is a day,so T = 24 hours)?

Introduction

The Uslabor Market

The Short Run Demand for Labor

Human Capital

On-The-Job Training

Competitive Equilibrium

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters

Exam 4: The Supply of Labor

For a nonparticipant,the substitution effect is and the income effect is.

What is Mark's baseline utility?

If Sarah works 8 hours a day,what is the amount she can spend on consumption in one day (assume she also can spend her initial wealth)?

What is Mark's marginal utility of consumption, ?

If a budget constraint is kinked,budget sets lead to a clustering of equilibrium points,while budget sets lead to divergence.

What is Mark's marginal utility of leisure, ?

A decrease in an individual's wealth causes the budget set to experience

An example of a worker adjusting along the intensive margin is when

Which of the following is true about point R on the indifference curve ?

What is Sarah's total utility if she works 8 hours and spends all her earned income but not her initial wealth (assume her time endowment,T,is a day,so T = 24 hours)?

Introduction

The Uslabor Market

The Short Run Demand for Labor

Human Capital

On-The-Job Training

Competitive Equilibrium

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters