Question 1

All of the following are possible explanations for the fact that on average women earn lower wages than men in the United States except:

Accepted Answer

A)  women choose to work in low-wage industries. 
B)  women are more productive than men on average. 
C)  women enter and leave the labor force more frequently than men, causing them on average to have less experience and a lower productivity than men. 
D)  women are discriminated against in labor markets. 
A)  women choose to work in low-wage industries. 
B)  women are more productive than men on average. 
C)  women enter and leave the labor force more frequently than men, causing them on average to have less experience and a lower productivity than men. 
D)  women are discriminated against in labor markets.

Question 2

When the cost minimization condition is met:

Accepted Answer

A)  marginal cost equals marginal revenue. 
B)  the marginal products of all inputs are equal. 
C)  the marginal revenue products of all inputs are equal. 
D)  the ratio of marginal product to price is equal for all inputs. 
A)  marginal cost equals marginal revenue. 
B)  the marginal products of all inputs are equal. 
C)  the marginal revenue products of all inputs are equal. 
D)  the ratio of marginal product to price is equal for all inputs.

Question 3

The fact that some people are willing to take a pay cut to be able to work from home suggests that:

Accepted Answer

A)  when it comes to work, people often are not rational. 
B)  people have no choice but to work at home. 
C)  some people get benefits called "psychic income" from working conditions they like. 
D)  people are being paid efficiency wages when they aren't working at home. 
A)  when it comes to work, people often are not rational. 
B)  people have no choice but to work at home. 
C)  some people get benefits called "psychic income" from working conditions they like. 
D)  people are being paid efficiency wages when they aren't working at home.

Question 4

Demand-side discrimination occurs when:

Accepted Answer

A)  employers pay women less than men for doing the same job. 
B)  women remain in low-paying jobs because of family responsibilities. 
C)  employers hire a man who is more qualified than a woman. 
D)  women postpone having children in order to succeed professionally. 
A)  employers pay women less than men for doing the same job. 
B)  women remain in low-paying jobs because of family responsibilities. 
C)  employers hire a man who is more qualified than a woman. 
D)  women postpone having children in order to succeed professionally.

Question 5

The elasticity of the labor supply curve depends on all of the following factors except:

Accepted Answer

A)  individuals' opportunity cost of working. 
B)  the number of workers who enter or leave the labor market as the wage rate changes. 
C)  the elasticity of demand for a firm's output. 
D)  the elasticity of individuals' labor supply curves. 
A)  individuals' opportunity cost of working. 
B)  the number of workers who enter or leave the labor market as the wage rate changes. 
C)  the elasticity of demand for a firm's output. 
D)  the elasticity of individuals' labor supply curves.

Question 6

If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

Accepted Answer

A)  .5. 
B)  −.5. 
C)  2. 
D)  −2. 
A)  .5. 
B)  −.5. 
C)  2. 
D)  −2.

Question 7

The elasticity of labor demand is higher when:

Accepted Answer

A)  there are many substitutes for labor in the production process. 
B)  the inputs that could be substituted for labor are relatively expensive. 
C)  a large amount of labor is essential to the production process. 
D)  labor productivity falls rapidly when output is increased. 
A)  there are many substitutes for labor in the production process. 
B)  the inputs that could be substituted for labor are relatively expensive. 
C)  a large amount of labor is essential to the production process. 
D)  labor productivity falls rapidly when output is increased.

Question 8

Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. If this is true, on busy days when the effective hourly wage is higher, taxi drivers will:

Accepted Answer

A)  work the same number of hours as they will on slower days. 
B)  work fewer hours than they will on slower days. 
C)  work more hours than they will on slower days. 
D)  not work any hours. 
A)  work the same number of hours as they will on slower days. 
B)  work fewer hours than they will on slower days. 
C)  work more hours than they will on slower days. 
D)  not work any hours.

Question 9

According to the textbook author, who is most likely to do well as a result of the information revolution?

Accepted Answer

A)  College graduates in general 
B)  Authors of textbooks 
C)  Manufacturing workers 
D)  Designers of algorithms 
A)  College graduates in general 
B)  Authors of textbooks 
C)  Manufacturing workers 
D)  Designers of algorithms

Question 10

Refer to the graphs shown.   If product demand increases from D1 to D2, causing the product price to increase, the MRP curve of firm A (a supplier of this product) will:

Accepted Answer

A)  remain the same, but there will be a movement upward and to the left along MRP1. 
B)  remain the same, but there will be a movement downward and to the right along MRP2. 
C)  shift to the right. 
D)  shift to the left. 
A)  remain the same, but there will be a movement upward and to the left along MRP1. 
B)  remain the same, but there will be a movement downward and to the right along MRP2. 
C)  shift to the right. 
D)  shift to the left.

Question 11

Firms that discriminate are:

Accepted Answer

A)  always less profitable than firms that do not. 
B)  always more profitable than firms that do not. 
C)  sometimes more profitable than firms that do not. 
D)  irrational. 
A)  always less profitable than firms that do not. 
B)  always more profitable than firms that do not. 
C)  sometimes more profitable than firms that do not. 
D)  irrational.

Question 12

Suppose both wages and employment increase. These changes most likely were caused by:

Accepted Answer

A)  an increase in labor demand. 
B)  an increase in labor supply. 
C)  a decrease in labor demand. 
D)  a decrease in labor supply. 
A)  an increase in labor demand. 
B)  an increase in labor supply. 
C)  a decrease in labor demand. 
D)  a decrease in labor supply.

Question 13

The labor market is a market in which:

Accepted Answer

A)  labor supply and labor demand alone determine wages and employment. 
B)  social and political pressures are particularly strong. 
C)  the invisible hand operates unimpeded by other forces. 
D)  firms determine the supply of labor. 
A)  labor supply and labor demand alone determine wages and employment. 
B)  social and political pressures are particularly strong. 
C)  the invisible hand operates unimpeded by other forces. 
D)  firms determine the supply of labor.

Question 14

Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. Since the effective hourly wage is higher on busy days, choosing to stop working when a particular income goal is reached is:

Accepted Answer

A)  consistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher. 
B)  consistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher. 
C)  inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher. 
D)  inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher. 
A)  consistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher. 
B)  consistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher. 
C)  inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher. 
D)  inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher.

Question 15

Refer to the table shown. $$\begin{array}{l}
\begin{array} { | c | c | } 
\hline\text { Number wf Warkers } & \text { Tatal Praduct per Huur }\
\hline 1 & 24 \
\hline 2 & 44 \
\hline 3 & 60 \
\hline 4 & 74 \
\hline 5 & 84 \
\hline 6 & 90 \
\hline 7 & 92 \
\hline
\end{array}
\end{array}$$ The marginal physical product of the sixth worker is ________, and the average product of six workers is ________.

Accepted Answer

A)  15; 6 
B)  6; 15 
C)  13; 2 
D)  2; 13 
A)  15; 6 
B)  6; 15 
C)  13; 2 
D)  2; 13

Question 16

Refer to the table shown. $$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Number wf Warkers } & \text { Tatal Praduct per Huur }\
\hline 1 & 24 \
\hline 2 & 44 \
\hline 3 & 60 \
\hline 4 & 74 \
\hline 5 & 84 \
\hline 6 & 90 \
\hline 7 & 92 \
\hline
\end{array}
\end{array}$$ If the price per unit of product is $2, the marginal revenue product of the fourth worker is:

Accepted Answer

A)  14. 
B)  28. 
C)  32. 
D)  40. 
A)  14. 
B)  28. 
C)  32. 
D)  40.

Question 17

Which of the following is not a type of labor law in the United States?

Accepted Answer

A)  Child labor laws 
B)  Worker safety and health laws 
C)  Overtime pay laws 
D)  Maximum wage laws 
A)  Child labor laws 
B)  Worker safety and health laws 
C)  Overtime pay laws 
D)  Maximum wage laws

Question 18

The demand for labor is a derived demand because:

Accepted Answer

A)  many workers are self-employed. 
B)  the income workers earn adds to the demand for output. 
C)  the demand for output comes from the demand for labor. 
D)  the demand for labor comes from the demand for output. 
A)  many workers are self-employed. 
B)  the income workers earn adds to the demand for output. 
C)  the demand for output comes from the demand for labor. 
D)  the demand for labor comes from the demand for output.

Question 19

If increasing the hourly wage rate from $10 to $15 causes a worker to work 50 hours rather than 40, the worker's elasticity of labor supply is equal to:

Accepted Answer

A)  0.05. 
B)  1.8. 
C)  0.50. 
D)  2. 
A)  0.05. 
B)  1.8. 
C)  0.50. 
D)  2.

Question 20

Business lobbyists tend to argue against a living wage law by arguing that it is a price:

Accepted Answer

A)  ceiling that will cause a shortage of labor. 
B)  ceiling that will cause a surplus of labor. 
C)  floor that will cause a shortage of labor. 
D)  floor that will cause a surplus of labor. 
A)  ceiling that will cause a shortage of labor. 
B)  ceiling that will cause a surplus of labor. 
C)  floor that will cause a shortage of labor. 
D)  floor that will cause a surplus of labor.

Exam 17: Work and the Labor Market

All of the following are possible explanations for the fact that on average women earn lower wages than men in the United States except:

When the cost minimization condition is met:

The fact that some people are willing to take a pay cut to be able to work from home suggests that:

Demand-side discrimination occurs when:

The elasticity of the labor supply curve depends on all of the following factors except:

If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

The elasticity of labor demand is higher when:

Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. If this is true, on busy days when the effective hourly wage is higher, taxi drivers will:

According to the textbook author, who is most likely to do well as a result of the information revolution?

Refer to the graphs shown. If product demand increases from D1 to D2, causing the product price to increase, the MRP curve of firm A (a supplier of this product) will:

Firms that discriminate are:

Suppose both wages and employment increase. These changes most likely were caused by:

The labor market is a market in which:

Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. Since the effective hourly wage is higher on busy days, choosing to stop working when a particular income goal is reached is:

Refer to the table shown. Number wf Warkers Tatal Praduct per Huur 1 24 2 44 3 60 4 74 5 84 6 90 7 92 The marginal physical product of the sixth worker is ________, and the average product of six workers is ________.

Refer to the table shown. Number wf Warkers Tatal Praduct per Huur 1 24 2 44 3 60 4 74 5 84 6 90 7 92 If the price per unit of product is $2, the marginal revenue product of the fourth worker is:

Which of the following is not a type of labor law in the United States?

The demand for labor is a derived demand because:

If increasing the hourly wage rate from $10 to $15 causes a worker to work 50 hours rather than 40, the worker's elasticity of labor supply is equal to:

Business lobbyists tend to argue against a living wage law by arguing that it is a price:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters

Refer to the graphs shown. If product demand increases from D₁ to D₂, causing the product price to increase, the MRP curve of firm A (a supplier of this product) will:

Refer to the table shown. Number wf Warkers Tatal Praduct per Huur 1 24 2 44 3 60 4 74 5 84 6 90 7 92 The marginal physical product of the sixth worker is , and the average product of six workers is .