Question 1

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Accepted Answer

A)  The supply of firemen will fall because there will be fewer fires. 
B)  The supply of firemen will increase because there will be fewer fires. 
C)  The supply of firemen will remain unchanged because the supply curve relates the number of fire fighters to the wage, not to the number of fires. 
D)  The supply of firemen will increase as long as wages paid to workers on new construction projects is also increasing. 
E)  The supply of firemen will decrease as long as the property tax-base increases when the new construction projects are completed. 
A)  The supply of firemen will fall because there will be fewer fires. 
B)  The supply of firemen will increase because there will be fewer fires. 
C)  The supply of firemen will remain unchanged because the supply curve relates the number of fire fighters to the wage, not to the number of fires. 
D)  The supply of firemen will increase as long as wages paid to workers on new construction projects is also increasing. 
E)  The supply of firemen will decrease as long as the property tax-base increases when the new construction projects are completed. C

Question 2

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?

Accepted Answer

A)  The demand for economists recently increased while the supply of economists remained unchanged. 
B)  The demand for economists recently decreased while the supply of economists remained unchanged. 
C)  The demand for economists remained unchanged while the supply of economists increased. 
D)  The demand for economists remained unchanged while the supply of economists decreased. 
E)  The demand for economists recently decreased while the supply of economists recently increased. 
A)  The demand for economists recently increased while the supply of economists remained unchanged. 
B)  The demand for economists recently decreased while the supply of economists remained unchanged. 
C)  The demand for economists remained unchanged while the supply of economists increased. 
D)  The demand for economists remained unchanged while the supply of economists decreased. 
E)  The demand for economists recently decreased while the supply of economists recently increased. A

Question 3

Suppose labor supply can be described as ES = 0.1w − 1000 where w is yearly salary. How many workers are willing to work when the yearly salary is $20,000?

Accepted Answer

A)  100 
B)  200 
C)  500 
D)  1000 
E)  2000 
A)  100 
B)  200 
C)  500 
D)  1000 
E)  2000 D

Question 4

An upward-sloping labor supply curve implies that

Accepted Answer

A)  a firm can always hire more workers, even without increasing the wage. 
B)  more workers are willing work when wages are low. 
C)  more workers are willing to work as the market wage increases. 
D)  the labor supply is fixed. 
E)  there is a continuously increasing demand for labor. 
A)  a firm can always hire more workers, even without increasing the wage. 
B)  more workers are willing work when wages are low. 
C)  more workers are willing to work as the market wage increases. 
D)  the labor supply is fixed. 
E)  there is a continuously increasing demand for labor.

Question 5

Which is not a decision made by potential workers in the United States?

Accepted Answer

A)  deciding whether or not to participate in the labor force 
B)  determining how to divide one's time between work and leisure 
C)  choosing how much to produce to maximize firm profit 
D)  choosing how much education to receive 
E)  deciding which occupation to pursue 
A)  deciding whether or not to participate in the labor force 
B)  determining how to divide one's time between work and leisure 
C)  choosing how much to produce to maximize firm profit 
D)  choosing how much education to receive 
E)  deciding which occupation to pursue

Question 6

Which of the following affects a person's decision to work?

Accepted Answer

A)  the price of consumption goods relative to the wage 
B)  the person's income from nonlabor sources 
C)  how much the person enjoys working 
D)  the amount of fringe benefits offered to the person 
E)  All of the above affect a person's decision to work. 
A)  the price of consumption goods relative to the wage 
B)  the person's income from nonlabor sources 
C)  how much the person enjoys working 
D)  the amount of fringe benefits offered to the person 
E)  All of the above affect a person's decision to work.

Question 7

A firm's demand for labor is derived in part from

Accepted Answer

A)  worker preferences for jobs. 
B)  consumer demand for the firm's product. 
C)  the level of monthly union dues. 
D)  the firm's sunk costs. 
E)  the value of the firm's stock price. 
A)  worker preferences for jobs. 
B)  consumer demand for the firm's product. 
C)  the level of monthly union dues. 
D)  the firm's sunk costs. 
E)  the value of the firm's stock price.

Question 8

Suppose labor supply can be described as ES = 0.1w − 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?

Accepted Answer

A)  $30,000 
B)  $40,000 
C)  $50,000 
D)  $60,000 
E)  $70,000 
A)  $30,000 
B)  $40,000 
C)  $50,000 
D)  $60,000 
E)  $70,000

Question 9

In an econometric model, the dependent variable is

Accepted Answer

A)  the behavior one is trying to explain. 
B)  unchanging across subsamples. 
C)  always the wage. 
D)  also known as the residual. 
E)  unrelated to the independent variables. 
A)  the behavior one is trying to explain. 
B)  unchanging across subsamples. 
C)  always the wage. 
D)  also known as the residual. 
E)  unrelated to the independent variables.

Question 10

Labor market equilibrium is best characterized by

Accepted Answer

A)  a wage at which all people have a job. 
B)  a wage at which all workers are above the poverty level. 
C)  a wage at which the number of people willing to work equals the number of workers firms are willing to hire. 
D)  a minimum wage at which everyone is willing to work. 
E)  all workers receiving their ideal wage. 
A)  a wage at which all people have a job. 
B)  a wage at which all workers are above the poverty level. 
C)  a wage at which the number of people willing to work equals the number of workers firms are willing to hire. 
D)  a minimum wage at which everyone is willing to work. 
E)  all workers receiving their ideal wage.

Question 11

The labor supply curve shows how many workers are willing to work

Accepted Answer

A)  in a particular industry. 
B)  at any given time. 
C)  at the minimum wage. 
D)  at any given wage. 
E)  in order to maximize the firm's profit. 
A)  in a particular industry. 
B)  at any given time. 
C)  at the minimum wage. 
D)  at any given wage. 
E)  in order to maximize the firm's profit.

Question 12

The government is a player in the U.S. labor market in part because the government

Accepted Answer

A)  determines who is allowed to attend college. 
B)  assigns potential workers to particular industries. 
C)  sets workplace safety rules and regulations. 
D)  suggests a minimum wage for firms to pay. 
E)  funds employer-based health insurance benefits. 
A)  determines who is allowed to attend college. 
B)  assigns potential workers to particular industries. 
C)  sets workplace safety rules and regulations. 
D)  suggests a minimum wage for firms to pay. 
E)  funds employer-based health insurance benefits.

Question 13

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Accepted Answer

A)  The demand for firemen will fall as the demand for fire protection services falls. 
B)  The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. 
C)  The demand for firemen will remain unchanged as firemen do not build new construction. 
D)  The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. 
E)  The demand for firemen will remain unchanged as long as the property tax-base increases when the new construction projects are completed. 
A)  The demand for firemen will fall as the demand for fire protection services falls. 
B)  The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. 
C)  The demand for firemen will remain unchanged as firemen do not build new construction. 
D)  The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. 
E)  The demand for firemen will remain unchanged as long as the property tax-base increases when the new construction projects are completed.

Question 14

A firm's labor demand curve is typically

Accepted Answer

A)  a vertical line. 
B)  a horizontal line. 
C)  upward sloping. 
D)  downward sloping. 
E)  associated with a slope equal in absolute value to the slope of the labor supply curve. 
A)  a vertical line. 
B)  a horizontal line. 
C)  upward sloping. 
D)  downward sloping. 
E)  associated with a slope equal in absolute value to the slope of the labor supply curve.

Question 15

Which of the following affects the wage a firm is willing to pay its workers?

Accepted Answer

A)  the productivity of workers 
B)  consumer demand for the goods and/or services that the firm creates 
C)  the amount of fringe benefits the firm is required by law to pay 
D)  the level of payroll taxes the firm must pay 
E)  All of the above affect the wage a firm is willing to pay its workers. 
A)  the productivity of workers 
B)  consumer demand for the goods and/or services that the firm creates 
C)  the amount of fringe benefits the firm is required by law to pay 
D)  the level of payroll taxes the firm must pay 
E)  All of the above affect the wage a firm is willing to pay its workers.

Question 16

Which of the following is a normative rather than a positive statement?

Accepted Answer

A)  The minimum wage is $7.25 per hour. 
B)  Public education should be funded primarily at the state level. 
C)  The federal debt exceeds $8 trillion. 
D)  At its peak, unemployment exceeded 10% during the 2007-08 recession. 
E)  The average real wage of high-school dropouts has fallen by 10% since 1970. 
A)  The minimum wage is $7.25 per hour. 
B)  Public education should be funded primarily at the state level. 
C)  The federal debt exceeds $8 trillion. 
D)  At its peak, unemployment exceeded 10% during the 2007-08 recession. 
E)  The average real wage of high-school dropouts has fallen by 10% since 1970.

Question 17

What type of questions cannot be answered with theory or facts alone?

Accepted Answer

A)  normative questions 
B)  positive questions 
C)  factual questions 
D)  empirical questions 
E)  econometric questions 
A)  normative questions 
B)  positive questions 
C)  factual questions 
D)  empirical questions 
E)  econometric questions

Question 18

When forming theories, economists must be careful to

Accepted Answer

A)  include all known facts and details. 
B)  omit crucial factors. 
C)  mirror the real world as realistically but as simply as possible. 
D)  consider historical behavior and policies. 
E)  limit the analysis to two variables. 
A)  include all known facts and details. 
B)  omit crucial factors. 
C)  mirror the real world as realistically but as simply as possible. 
D)  consider historical behavior and policies. 
E)  limit the analysis to two variables.

Question 19

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

Accepted Answer

A)  normative questions 
B)  positive questions 
C)  labor questions 
D)  econometric questions 
E)  public policy questions 
A)  normative questions 
B)  positive questions 
C)  labor questions 
D)  econometric questions 
E)  public policy questions

Question 20

Labor economics concerns

Accepted Answer

A)  how labor markets work. 
B)  the study of education decisions. 
C)  the study of how households decide where to live. 
D)  the study of income inequality. 
E)  All of these are labor economics concerns. 
A)  how labor markets work. 
B)  the study of education decisions. 
C)  the study of how households decide where to live. 
D)  the study of income inequality. 
E)  All of these are labor economics concerns.

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?

Suppose labor supply can be described as E_S = 0.1w − 1000 where w is yearly salary. How many workers are willing to work when the yearly salary is $20,000?

An upward-sloping labor supply curve implies that

Which is not a decision made by potential workers in the United States?

Which of the following affects a person's decision to work?

A firm's demand for labor is derived in part from

Suppose labor supply can be described as E_S = 0.1w − 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?

In an econometric model, the dependent variable is

Labor market equilibrium is best characterized by

The labor supply curve shows how many workers are willing to work

The government is a player in the U.S. labor market in part because the government

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

A firm's labor demand curve is typically

Which of the following affects the wage a firm is willing to pay its workers?

Which of the following is a normative rather than a positive statement?

What type of questions cannot be answered with theory or facts alone?

When forming theories, economists must be careful to

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

Labor economics concerns

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 1: Introduction to Labor Economics

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?

Suppose labor supply can be described as ES = 0.1w − 1000 where w is yearly salary. How many workers are willing to work when the yearly salary is $20,000?

An upward-sloping labor supply curve implies that

Which is not a decision made by potential workers in the United States?

Which of the following affects a person's decision to work?

A firm's demand for labor is derived in part from

Suppose labor supply can be described as ES = 0.1w − 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?

In an econometric model, the dependent variable is

Labor market equilibrium is best characterized by

The labor supply curve shows how many workers are willing to work

The government is a player in the U.S. labor market in part because the government

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

A firm's labor demand curve is typically

Which of the following affects the wage a firm is willing to pay its workers?

Which of the following is a normative rather than a positive statement?

What type of questions cannot be answered with theory or facts alone?

When forming theories, economists must be careful to

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

Labor economics concerns

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Suppose labor supply can be described as E_S = 0.1w − 1000 where w is yearly salary. How many workers are willing to work when the yearly salary is $20,000?

Suppose labor supply can be described as E_S = 0.1w − 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?