Question 1

No matter how high his wage rises,Johann will always work more.His labor supply curve is:

Accepted Answer

A) downward-sloping. 
B) horizontal. 
C) vertical. 
D) upward-sloping. 
E) upward-sloping at an increasing rate. 
A) downward-sloping. 
B) horizontal. 
C) vertical. 
D) upward-sloping. 
E) upward-sloping at an increasing rate.

Question 2

Refer to the accompanying graphs to answer the questions that follow.

-The minimum wage is increased to $15.This higher wage might __________ labor force participation,shifting the labor supply curve to the __________.

Accepted Answer

A) decrease; right 
B) increase; left 
C) decrease; left 
D) increase; right 
E) not change; right 
A) decrease; right 
B) increase; left 
C) decrease; left 
D) increase; right 
E) not change; right

Question 3

A company that produces simple textiles outsources its operations to Indonesia.Wages for Indonesian workers will __________ and their employment will __________.

Accepted Answer

A) rise; rise 
B) fall; rise 
C) stay the same; fall 
D) fall; stay the same 
E) fall; fall 
A) rise; rise 
B) fall; rise 
C) stay the same; fall 
D) fall; stay the same 
E) fall; fall

Question 4

At a wage of __________,__________ workers are demanded.

Accepted Answer

A) $5,10 
B) $10,35 
C) $15,40 
D) $40,10 
E) $45,45 
A) $5,10 
B) $10,35 
C) $15,40 
D) $40,10 
E) $45,45

Question 5

In theory,some people might lose in the short run from outsourcing,but in the long run,all should benefit.Which option demonstrates that this theory might not be true?

Accepted Answer

A) Lower labor costs lead to lower prices,so more foreigners can buy imports. 
B) Income earned at outsourced jobs allows foreign workers to purchase imports. 
C) Lower prices allow more consumers to buy the good domestically. 
D) Outsourcing stimulates competition. 
E) Inadequate transition programs hinder the ability of domestic workers,who lost their jobs to outsourcing,to obtain new jobs. 
A) Lower labor costs lead to lower prices,so more foreigners can buy imports. 
B) Income earned at outsourced jobs allows foreign workers to purchase imports. 
C) Lower prices allow more consumers to buy the good domestically. 
D) Outsourcing stimulates competition. 
E) Inadequate transition programs hinder the ability of domestic workers,who lost their jobs to outsourcing,to obtain new jobs.

Question 6

Which of the following situations does not represent derived demand?

Accepted Answer

A) the demand for bakers 
B) the demand for home ovens 
C) the demand for fast-food fryers 
D) the demand for office space 
E) the demand for trainers 
A) the demand for bakers 
B) the demand for home ovens 
C) the demand for fast-food fryers 
D) the demand for office space 
E) the demand for trainers

Question 7

Donna owns a temp agency.She sees demand for her workers increase because firms prefer a more contingent workforce.The value of the marginal product of labor of her temps:

Accepted Answer

A) stays the same. 
B) increases because the temps produce more per hour. 
C) decreases because the temps know they are going to get jobs. 
D) increases because the price of their services is higher. 
E) falls because job uncertainty lowers productivity. 
A) stays the same. 
B) increases because the temps produce more per hour. 
C) decreases because the temps know they are going to get jobs. 
D) increases because the price of their services is higher. 
E) falls because job uncertainty lowers productivity.

Question 8

Use the following information to answer the questions that follow.
Nicky L,owner of NLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - LS1U1P12S1S1P0
He also knows that the price of his output is $3.His profits can be found as:
Profit = P
   Q - W
   L
-What is the value of additional output produced by the twelfth worker?

Accepted Answer

A) $20 
B) $100 
C) $10 
D) $60 
E) $80 
A) $20 
B) $100 
C) $10 
D) $60 
E) $80

Question 9

Refer to the accompanying graphs to answer the questions that follow.

-Choose the graph that represents the following situation: A documentary on bottled water demonstrates the high impact this product has on the environment.In response,consumers drastically reduce their consumption of this product.

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E

Question 10

Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour.The value of the marginal product of Roboman is $5,000,and the value of the marginal product of labor is $20.Companies should hire __________ RoboMen and __________ workers.

Accepted Answer

A) more; fewer 
B) more; more 
C) fewer; fewer 
D) fewer; more 
E) the same amount of; more 
A) more; fewer 
B) more; more 
C) fewer; fewer 
D) fewer; more 
E) the same amount of; more

Question 11

The accompanying graph depicts Mighty Max's labor demand for his duffle-bag business.The labor demand curve shown is calculated based on a duffel-bag price of $10.If the price increases to $20 per bag,what happens to the labor demand curve?

Accepted Answer

A) It shifts to the left. 
B) It shifts to the right. 
C) It remains unchanged. 
D) The firm moves upward along the labor demand curve. 
E) The firm moves downward along the labor demand curve. 
A) It shifts to the left. 
B) It shifts to the right. 
C) It remains unchanged. 
D) The firm moves upward along the labor demand curve. 
E) The firm moves downward along the labor demand curve.

Question 12

Use the accompanying graph,which depicts Mighty Max's labor demand for his duffle-bag business,to answer the questions that follow.
  
-If 80 workers are hired,you know that the wage rate must be:

Accepted Answer

A) $25. 
B) $20. 
C) $15. 
D) $10. 
E) $5. 
A) $25. 
B) $20. 
C) $15. 
D) $10. 
E) $5.

Question 13

Which company has the ability to outsource its operations and have its good or service produced in another country?

Accepted Answer

A) Helen's Hair Salons 
B) Diamond Dentistry 
C) Queen's Quilts 
D) Banty's Baseball Team 
E) Ann's Fresh Pretzels 
A) Helen's Hair Salons 
B) Diamond Dentistry 
C) Queen's Quilts 
D) Banty's Baseball Team 
E) Ann's Fresh Pretzels

Question 14

If the price of output is $5,the value of the marginal product of labor of the third worker is:

Accepted Answer

A) $8. 
B) $30. 
C) $40. 
D) $38. 
E) $190. 
A) $8. 
B) $30. 
C) $40. 
D) $38. 
E) $190.

Question 15

Refer to the accompanying graphs to answer the questions that follow.

-Immigration is when:

Accepted Answer

A) foreign persons enter another country. 
B) foreign persons leave another country. 
C) citizens move to another country. 
D) citizens move within their own country. 
E) foreign persons move within their own country. 
A) foreign persons enter another country. 
B) foreign persons leave another country. 
C) citizens move to another country. 
D) citizens move within their own country. 
E) foreign persons move within their own country.

Question 16

More job opportunities open up in the South,prompting labor supply curves in northern states to __________ and in southern states to __________.

Accepted Answer

A) remain unchanged; shift right 
B) shift right; shift right 
C) shift left; shift right 
D) shift left; remain unchanged 
E) shift left; shift left 
A) remain unchanged; shift right 
B) shift right; shift right 
C) shift left; shift right 
D) shift left; remain unchanged 
E) shift left; shift left

Question 17

Refer to the accompanying graphs to answer the questions that follow.

-Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
E) Graph E

Question 18

Where would economic rents be highest?

Accepted Answer

A) Cincinnati,OH 
B) St.Louis,MO 
C) New York City,NY 
D) Toledo,OH 
E) Grand Rapids,MI 
A) Cincinnati,OH 
B) St.Louis,MO 
C) New York City,NY 
D) Toledo,OH 
E) Grand Rapids,MI

Question 19

Companies outsource their operations because:

Accepted Answer

A) the weather is nicer in other countries. 
B) employees in other countries take less sick leave. 
C) governments in other countries allow them to operate. 
D) labor costs are lower. 
E) no one wants to do the work domestically. 
A) the weather is nicer in other countries. 
B) employees in other countries take less sick leave. 
C) governments in other countries allow them to operate. 
D) labor costs are lower. 
E) no one wants to do the work domestically.

Question 20

Which of the following describes the marginal product of labor?

Accepted Answer

A) It is the additional amount of consumer goods that can be bought from an additional hour's worth of work. 
B) It is the additional amount of inputs a firm demands based on a change in consumer demand for the output. 
C) It is the additional amount of output that can be produced from hiring one more worker. 
D) It is the decreasing amount of output that can be produced from hiring one more worker. 
E) It is the value of production from the last worker hired. 
A) It is the additional amount of consumer goods that can be bought from an additional hour's worth of work. 
B) It is the additional amount of inputs a firm demands based on a change in consumer demand for the output. 
C) It is the additional amount of output that can be produced from hiring one more worker. 
D) It is the decreasing amount of output that can be produced from hiring one more worker. 
E) It is the value of production from the last worker hired.

No matter how high his wage rises,Johann will always work more.His labor supply curve is:

Refer to the accompanying graphs to answer the questions that follow. -The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

A company that produces simple textiles outsources its operations to Indonesia.Wages for Indonesian workers will and their employment will .

At a wage of , workers are demanded.

In theory,some people might lose in the short run from outsourcing,but in the long run,all should benefit.Which option demonstrates that this theory might not be true?

Which of the following situations does not represent derived demand?

Donna owns a temp agency.She sees demand for her workers increase because firms prefer a more contingent workforce.The value of the marginal product of labor of her temps:

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that represents the following situation: A documentary on bottled water demonstrates the high impact this product has on the environment.In response,consumers drastically reduce their consumption of this product.

Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour.The value of the marginal product of Roboman is $5,000,and the value of the marginal product of labor is $20.Companies should hire RoboMen and workers.

The accompanying graph depicts Mighty Max's labor demand for his duffle-bag business.The labor demand curve shown is calculated based on a duffel-bag price of $10.If the price increases to $20 per bag,what happens to the labor demand curve?

Use the accompanying graph,which depicts Mighty Max's labor demand for his duffle-bag business,to answer the questions that follow. -If 80 workers are hired,you know that the wage rate must be:

Which company has the ability to outsource its operations and have its good or service produced in another country?

If the price of output is $5,the value of the marginal product of labor of the third worker is:

Refer to the accompanying graphs to answer the questions that follow. -Immigration is when:

More job opportunities open up in the South,prompting labor supply curves in northern states to and in southern states to .

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

Where would economic rents be highest?

Companies outsource their operations because:

Which of the following describes the marginal product of labor?

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Exam 14: The Demand and Supply of Resources

No matter how high his wage rises,Johann will always work more.His labor supply curve is:

Refer to the accompanying graphs to answer the questions that follow. -The minimum wage is increased to $15.This higher wage might __________ labor force participation,shifting the labor supply curve to the __________.

A company that produces simple textiles outsources its operations to Indonesia.Wages for Indonesian workers will __________ and their employment will __________.

At a wage of __________,__________ workers are demanded.

In theory,some people might lose in the short run from outsourcing,but in the long run,all should benefit.Which option demonstrates that this theory might not be true?

Which of the following situations does not represent derived demand?

Donna owns a temp agency.She sees demand for her workers increase because firms prefer a more contingent workforce.The value of the marginal product of labor of her temps:

Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour.The value of the marginal product of Roboman is $5,000,and the value of the marginal product of labor is $20.Companies should hire __________ RoboMen and __________ workers.

The accompanying graph depicts Mighty Max's labor demand for his duffle-bag business.The labor demand curve shown is calculated based on a duffel-bag price of $10.If the price increases to $20 per bag,what happens to the labor demand curve?

Use the accompanying graph,which depicts Mighty Max's labor demand for his duffle-bag business,to answer the questions that follow. -If 80 workers are hired,you know that the wage rate must be:

Which company has the ability to outsource its operations and have its good or service produced in another country?

If the price of output is $5,the value of the marginal product of labor of the third worker is:

Refer to the accompanying graphs to answer the questions that follow. -Immigration is when:

More job opportunities open up in the South,prompting labor supply curves in northern states to __________ and in southern states to __________.

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

Where would economic rents be highest?

Companies outsource their operations because:

Which of the following describes the marginal product of labor?

The Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Price Controls

The Efficiency of Markets and the Costs of Taxation

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

Filters

Refer to the accompanying graphs to answer the questions that follow. -The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

A company that produces simple textiles outsources its operations to Indonesia.Wages for Indonesian workers will and their employment will .

At a wage of , workers are demanded.

Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour.The value of the marginal product of Roboman is $5,000,and the value of the marginal product of labor is $20.Companies should hire RoboMen and workers.

More job opportunities open up in the South,prompting labor supply curves in northern states to and in southern states to .