Question 1

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

-Migration is when:

Accepted Answer

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

Question 2

Use the accompanying graph,which depicts Mighty Max's labor demand for his duffle-bag business,to answer the questions that follow.
  
-Amy just applied for a position with Rory's firm.Rory knows that Amy will earn $20 an hour and can produce a value of the marginal product of labor (VMPL)of $40.Rory will __________ Amy because her VMPL is __________.

Accepted Answer

A) hire; positive 
B) not hire; positive 
C) hire; negative 
D) not hire; negative 
E) maybe hire; positive 
A) hire; positive 
B) not hire; positive 
C) hire; negative 
D) not hire; negative 
E) maybe hire; positive

Question 3

A situation with only one buyer of labor is called a(n):

Accepted Answer

A) monopoly. 
B) oligopoly. 
C) monopsony. 
D) labor market equilibrium. 
E) labor market disequilibrium. 
A) monopoly. 
B) oligopoly. 
C) monopsony. 
D) labor market equilibrium. 
E) labor market disequilibrium.

Question 4

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

-Which graph shows a person who has a fixed quantity of hours that she is willing to work per week?

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 5

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

-Choose the graph that represents the following situation: Consumer demand for Patty's Pickles increases as customers find out that pickles are highly nutritious.

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 6

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

-Rose travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Rose to work __________ hours because of the __________ effect.

Accepted Answer

A) more; substitution 
B) more; income 
C) fewer; substitution 
D) more; labor-leisure 
E) fewer; income 
A) more; substitution 
B) more; income 
C) fewer; substitution 
D) more; labor-leisure 
E) fewer; income

Question 7

As iPads become more popular,we can expect the wages of Apple workers to __________ relative to PC workers.

Accepted Answer

A) increase 
B) stagnate 
C) decrease slowly 
D) fall to the minimum wage 
E) decrease 
A) increase 
B) stagnate 
C) decrease slowly 
D) fall to the minimum wage 
E) decrease

Question 8

The diminishing marginal product of labor exists when the last worker hired produces:

Accepted Answer

A) more output than the previous worker. 
B) more value than the previous worker. 
C) less value than the previous worker. 
D) the same amount of output as the previous worker. 
E) less output than the previous worker. 
A) more output than the previous worker. 
B) more value than the previous worker. 
C) less value than the previous worker. 
D) the same amount of output as the previous worker. 
E) less output than the previous worker.

Question 9

Which of the following situations describes a monopsony?

Accepted Answer

A) You are an ice cream artist and several shops are hiring. 
B) You are the only teleport technician in the world. 
C) You are an accountant in New York City. 
D) You are a college instructor and there is only one university within 300 miles of your permanent residence. 
E) You are the only professional dog groomer in town. 
A) You are an ice cream artist and several shops are hiring. 
B) You are the only teleport technician in the world. 
C) You are an accountant in New York City. 
D) You are a college instructor and there is only one university within 300 miles of your permanent residence. 
E) You are the only professional dog groomer in town.

Question 10

There will be a __________ of workers when the wage is __________ the equilibrium wage.

Accepted Answer

A) surplus; at 
B) surplus; below 
C) surplus; above 
D) shortage; above 
E) shortage; at 
A) surplus; at 
B) surplus; below 
C) surplus; above 
D) shortage; above 
E) shortage; at

Question 11

If demand for land increases,the rental price __________ and the equilibrium amount of land __________.

Accepted Answer

A) increases; falls 
B) decreases; increases 
C) increases; increases 
D) decreases; stays the same 
E) increases; stays the same 
A) increases; falls 
B) decreases; increases 
C) increases; increases 
D) decreases; stays the same 
E) increases; stays the same

Question 12

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Accepted Answer

A) less 
B) the same 
C) more 
D) half as much 
E) a third more 
A) less 
B) the same 
C) more 
D) half as much 
E) a third more

Question 13

Maxine finds that she is consistently unable to fill all of the open positions at her bakery.This indicates that the wage she is offering is:

Accepted Answer

A) above the market rate. 
B) at the market rate. 
C) double what her competitors are offering their employees. 
D) half of what her competitors are offering their employees. 
E) below the market rate. 
A) above the market rate. 
B) at the market rate. 
C) double what her competitors are offering their employees. 
D) half of what her competitors are offering their employees. 
E) below the market rate.

Question 14

When Josh's wage rises and he decides to work more hours,we know that the __________ effect has dominated the __________ effect.

Accepted Answer

A) substitution; income 
B) labor; leisure 
C) income; substitution 
D) leisure; labor 
E) substitution; leisure 
A) substitution; income 
B) labor; leisure 
C) income; substitution 
D) leisure; labor 
E) substitution; leisure

Question 15

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

Accepted Answer

It depends on whether the income effect

Question 16

The backward-bending labor supply curve occurs because workers value leisure:

Accepted Answer

A) and income differently as wages change. 
B) consistently more than they do income at all wages. 
C) consistently less than they do income at all wages. 
D) and income by the same amount at all wages. 
E) and income by fluctuating,unpredictable amounts at any wage. 
A) and income differently as wages change. 
B) consistently more than they do income at all wages. 
C) consistently less than they do income at all wages. 
D) and income by the same amount at all wages. 
E) and income by fluctuating,unpredictable amounts at any wage.

Question 17

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

-Which graph shows the income effect dominating the substitution effect of higher wages?

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

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 wage would be required to allow Nicky L to hire the twenty-fifth worker?

Accepted Answer

A) $3 
B) $7 
C) $21 
D) $125 
E) $25 
A) $3 
B) $7 
C) $21 
D) $125 
E) $25

Question 19

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

-Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

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 20

If Mary rents her land for $250/month and her next best use of the land would earn her $100/month,her economic rent is __________.

Accepted Answer

A) $250 
B) $150 
C) $100 
D) $75 
E) $25 
A) $250 
B) $150 
C) $100 
D) $75 
E) $25

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

A situation with only one buyer of labor is called a(n):

Refer to the accompanying graphs to answer the questions that follow. -Which graph shows a person who has a fixed quantity of hours that she is willing to work per week?

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that represents the following situation: Consumer demand for Patty's Pickles increases as customers find out that pickles are highly nutritious.

Refer to the accompanying graphs to answer the questions that follow. -Rose travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Rose to work hours because of the effect.

As iPads become more popular,we can expect the wages of Apple workers to __________ relative to PC workers.

The diminishing marginal product of labor exists when the last worker hired produces:

Which of the following situations describes a monopsony?

There will be a of workers when the wage is the equilibrium wage.

If demand for land increases,the rental price and the equilibrium amount of land .

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Maxine finds that she is consistently unable to fill all of the open positions at her bakery.This indicates that the wage she is offering is:

When Josh's wage rises and he decides to work more hours,we know that the effect has dominated the effect.

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

The backward-bending labor supply curve occurs because workers value leisure:

Refer to the accompanying graphs to answer the questions that follow. -Which graph shows the income effect dominating the substitution effect of higher wages?

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

If Mary rents her land for $250/month and her next best use of the land would earn her $100/month,her economic rent is __________.

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

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

A situation with only one buyer of labor is called a(n):

Refer to the accompanying graphs to answer the questions that follow. -Which graph shows a person who has a fixed quantity of hours that she is willing to work per week?

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that represents the following situation: Consumer demand for Patty's Pickles increases as customers find out that pickles are highly nutritious.

Refer to the accompanying graphs to answer the questions that follow. -Rose travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Rose to work __________ hours because of the __________ effect.

As iPads become more popular,we can expect the wages of Apple workers to __________ relative to PC workers.

The diminishing marginal product of labor exists when the last worker hired produces:

Which of the following situations describes a monopsony?

There will be a __________ of workers when the wage is __________ the equilibrium wage.

If demand for land increases,the rental price __________ and the equilibrium amount of land __________.

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Maxine finds that she is consistently unable to fill all of the open positions at her bakery.This indicates that the wage she is offering is:

When Josh's wage rises and he decides to work more hours,we know that the __________ effect has dominated the __________ effect.

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

The backward-bending labor supply curve occurs because workers value leisure:

Refer to the accompanying graphs to answer the questions that follow. -Which graph shows the income effect dominating the substitution effect of higher wages?

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

If Mary rents her land for $250/month and her next best use of the land would earn her $100/month,her economic rent is __________.

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. -Rose travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Rose to work hours because of the effect.

There will be a of workers when the wage is the equilibrium wage.

If demand for land increases,the rental price and the equilibrium amount of land .

When Josh's wage rises and he decides to work more hours,we know that the effect has dominated the effect.