Question 1

The marginal concept is important in economics because

Accepted Answer

A)  it provides a convenient means of locating an optimal choice. 
B)  it assumes individuals operate using limited rationality. 
C)  it allows for economists to predict how an agent will respond to a change in their environment. 
D)  A and C only 
E)  all of the above 
A)  it provides a convenient means of locating an optimal choice. 
B)  it assumes individuals operate using limited rationality. 
C)  it allows for economists to predict how an agent will respond to a change in their environment. 
D)  A and C only 
E)  all of the above

Question 2

Which of the following is an exogenous variable in the standard model of labor supply?

Accepted Answer

A)  the wage in an alternative industry 
B)  the wage in that industry 
C)  the population size 
D)  the rental price of capital 
E)  both A and C. 
A)  the wage in an alternative industry 
B)  the wage in that industry 
C)  the population size 
D)  the rental price of capital 
E)  both A and C.

Question 3

If the price of capital increases and the substitution effect dominates,then labor and capital are and demand for labor will.

Accepted Answer

A)  gross substitutes,increase 
B)  gross substitutes,decrease 
C)  gross substitutes,increase or decrease 
D)  gross complements,increase 
E)  gross complements,decrease 
A)  gross substitutes,increase 
B)  gross substitutes,decrease 
C)  gross substitutes,increase or decrease 
D)  gross complements,increase 
E)  gross complements,decrease

Question 4

Which of the following is not a positive statement?

Accepted Answer

A)  The federal minimum wage was recently increased to $7.25. 
B)  Ceteris paribus,an increase in wages increases the quantity of workers supplied. 
C)  Minimum wage laws are not Pareto efficient. 
D)  An increase in the minimum wage hurts the profits of small businesses. 
E)  A decrease in the labor force due to the swine flu will cause the equilibrium wage to increase. 
A)  The federal minimum wage was recently increased to $7.25. 
B)  Ceteris paribus,an increase in wages increases the quantity of workers supplied. 
C)  Minimum wage laws are not Pareto efficient. 
D)  An increase in the minimum wage hurts the profits of small businesses. 
E)  A decrease in the labor force due to the swine flu will cause the equilibrium wage to increase.

Question 5

Given the information just provided,which of the following statements is true?

Accepted Answer

A)  If wages increased by $1,there would be an excess demand of 7 workers. 
B)  If wages increased by $1,there would be an excess supply of 5 workers. 
C)  If wages decreased by $1,there would be an excess demand of 5 workers. 
D)  If wages decreased by $1,there would be an excess supply of 7 workers. 
E)  none of the above 
A)  If wages increased by $1,there would be an excess demand of 7 workers. 
B)  If wages increased by $1,there would be an excess supply of 5 workers. 
C)  If wages decreased by $1,there would be an excess demand of 5 workers. 
D)  If wages decreased by $1,there would be an excess supply of 7 workers. 
E)  none of the above

Question 6

When the price of capital decreases,if the demand for labor then capital and labor are gross.

Accepted Answer

A)  increases,substitutes 
B)  increases,complements 
C)  remains the same,substitutes 
D)  remains the same,complements 
E)  decreases,complements 
A)  increases,substitutes 
B)  increases,complements 
C)  remains the same,substitutes 
D)  remains the same,complements 
E)  decreases,complements

Question 7

Suppose the labor supply curve shifts upward.Which of the following could have caused the shift?

Accepted Answer

A)  The wage in an alternative industry increased. 
B)  The price of capital increased,and capital and labor are gross complements. 
C)  The price of capital decreased,and capital and labor are gross complements. 
D)  A hurricane caused thousands of people to leave New Orleans,decreasing the size of the labor force in the area. 
E)  none of the above 
A)  The wage in an alternative industry increased. 
B)  The price of capital increased,and capital and labor are gross complements. 
C)  The price of capital decreased,and capital and labor are gross complements. 
D)  A hurricane caused thousands of people to leave New Orleans,decreasing the size of the labor force in the area. 
E)  none of the above

Question 8

If wages are below the wage level that causes supply to equal demand,then there is

Accepted Answer

A)  excess supply for labor. 
B)  excess demand for labor. 
C)  a market equilibrium. 
D)  unemployment. 
E)  inflation. 
A)  excess supply for labor. 
B)  excess demand for labor. 
C)  a market equilibrium. 
D)  unemployment. 
E)  inflation.

Question 9

Which of the following is not true about New Institutional Economics?

Accepted Answer

A)  It is made up of agents who use rational choice. 
B)  It examines how individuals within the household behave. 
C)  It considers how workers who are already employed make their decisions regarding how much or how hard to work. 
D)  It is a combination of law,economics,and organization. 
E)  It assumes agents have a limited ability to calculate the consequences of their actions. 
A)  It is made up of agents who use rational choice. 
B)  It examines how individuals within the household behave. 
C)  It considers how workers who are already employed make their decisions regarding how much or how hard to work. 
D)  It is a combination of law,economics,and organization. 
E)  It assumes agents have a limited ability to calculate the consequences of their actions.

Question 10

If one small restaurant decreases its demand for cooks,then

Accepted Answer

A)  the wages of cooks will increase,and employment of cooks will decrease. 
B)  the wages of cooks will decrease,and employment of cooks will increase. 
C)  the wages of cooks will remain the same,and employment of cooks will decrease. 
D)  the wages of cooks will remain the same,and employment of cooks will increase. 
E)  the wages of cooks will remain the same,and employment of cooks will remain the same. 
A)  the wages of cooks will increase,and employment of cooks will decrease. 
B)  the wages of cooks will decrease,and employment of cooks will increase. 
C)  the wages of cooks will remain the same,and employment of cooks will decrease. 
D)  the wages of cooks will remain the same,and employment of cooks will increase. 
E)  the wages of cooks will remain the same,and employment of cooks will remain the same.

Question 11

Which of the following is not a true statement about the demand for labor?

Accepted Answer

A)  Wages and the number of workers demanded are endogenous variables. 
B)  The amount of the good demanded and the rental rate of capital are exogenous variables. 
C)  Higher wages decrease the quantity of labor demanded by employers. 
D)  A decrease in the demand for a good decreases the demand for labor. 
E)  If the rental rate of capital increases,demand for labor will always decrease. 
A)  Wages and the number of workers demanded are endogenous variables. 
B)  The amount of the good demanded and the rental rate of capital are exogenous variables. 
C)  Higher wages decrease the quantity of labor demanded by employers. 
D)  A decrease in the demand for a good decreases the demand for labor. 
E)  If the rental rate of capital increases,demand for labor will always decrease.

Question 12

Workers in an industry are probably overpaid if

Accepted Answer

A)  firms want to hire more workers but cannot ?0??7?nd people willing to work. 
B)  firms need to layoff workers because it cannot afford to cover costs. 
C)  firms are hiring the optimal amount of workers and there is no excess supply of labor in the market. 
D)  firms are unable to keep their most skilled workers. 
E)  no new workers are interested in working in that industry. 
A)  firms want to hire more workers but cannot ?0??7?nd people willing to work. 
B)  firms need to layoff workers because it cannot afford to cover costs. 
C)  firms are hiring the optimal amount of workers and there is no excess supply of labor in the market. 
D)  firms are unable to keep their most skilled workers. 
E)  no new workers are interested in working in that industry.

The marginal concept is important in economics because

Which of the following is an exogenous variable in the standard model of labor supply?

If the price of capital increases and the substitution effect dominates,then labor and capital are and demand for labor will.

Which of the following is not a positive statement?

Given the information just provided,which of the following statements is true?

When the price of capital decreases,if the demand for labor then capital and labor are gross.

Suppose the labor supply curve shifts upward.Which of the following could have caused the shift?

If wages are below the wage level that causes supply to equal demand,then there is

Which of the following is not true about New Institutional Economics?

If one small restaurant decreases its demand for cooks,then

Which of the following is not a true statement about the demand for labor?

Workers in an industry are probably overpaid if

The Uslabor Market

The Short Run Demand for Labor

The Supply of 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 1: Introduction

The marginal concept is important in economics because

Which of the following is an exogenous variable in the standard model of labor supply?

If the price of capital increases and the substitution effect dominates,then labor and capital are and demand for labor will.

Which of the following is not a positive statement?

Given the information just provided,which of the following statements is true?

When the price of capital decreases,if the demand for labor then capital and labor are gross.

Suppose the labor supply curve shifts upward.Which of the following could have caused the shift?

If wages are below the wage level that causes supply to equal demand,then there is

Which of the following is not true about New Institutional Economics?

If one small restaurant decreases its demand for cooks,then

Which of the following is not a true statement about the demand for labor?

Workers in an industry are probably overpaid if

The Uslabor Market

The Short Run Demand for Labor

The Supply of 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