Question 1

Institutional discrimination exists when:

Accepted Answer

A) discrimination is based on individual characteristics related to job performance. 
B) discrimination is based on individual characteristics not related to job performance. 
C) the structure of a job makes it difficult for certain groups of individuals to succeed. 
D) discrimination is based on correctly perceived statistical characteristics of a group. 
A) discrimination is based on individual characteristics related to job performance. 
B) discrimination is based on individual characteristics not related to job performance. 
C) the structure of a job makes it difficult for certain groups of individuals to succeed. 
D) discrimination is based on correctly perceived statistical characteristics of a group.

Question 2

A higher marginal income tax rate reduces incentives to work because:

Accepted Answer

A) leisure and other non-market activities aren't taxed, and so their relative price goes down. 
B) leisure and other non-market activities aren't taxed, and so their relative price goes up. 
C) the opportunity cost of leisure remains constant while after-tax wages fall. 
D) the opportunity cost of leisure increases with the marginal income tax rate. 
A) leisure and other non-market activities aren't taxed, and so their relative price goes down. 
B) leisure and other non-market activities aren't taxed, and so their relative price goes up. 
C) the opportunity cost of leisure remains constant while after-tax wages fall. 
D) the opportunity cost of leisure increases with the marginal income tax rate.

Question 3

Historically, technology has:

Accepted Answer

A) improved and the demand for labor has decreased as output has increased. 
B) improved and the demand for labor has increased as output has increased. 
C) worsened and the demand for labor has decreased as output has decreased. 
D) worsened and the demand for labor has increased as output has decreased. 
A) improved and the demand for labor has decreased as output has increased. 
B) improved and the demand for labor has increased as output has increased. 
C) worsened and the demand for labor has decreased as output has decreased. 
D) worsened and the demand for labor has increased as output has decreased.

Question 4

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 5

According to economic theory, which of the following types of discrimination is the easiest to eliminate?

Accepted Answer

A) Discrimination based on individual characteristics that affect job performance 
B) Discrimination based on correctly perceived statistical characteristics of a group 
C) Discrimination that saves the firm money 
D) Discrimination based on individual characteristics that do not affect job performance 
A) Discrimination based on individual characteristics that affect job performance 
B) Discrimination based on correctly perceived statistical characteristics of a group 
C) Discrimination that saves the firm money 
D) Discrimination based on individual characteristics that do not affect job performance

Question 6

If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:

Accepted Answer

A) 1/5. 
B) 1/2. 
C) 2. 
D) 5. 
A) 1/5. 
B) 1/2. 
C) 2. 
D) 5.

Question 7

When wages rise:

Accepted Answer

A) the quantity of labor supplied always declines. 
B) neither the opportunity cost of an hour of leisure nor the quantity of labor supplied is likely to change. 
C) the opportunity cost of an hour of leisure declines. 
D) the opportunity cost of an hour of leisure increases. 
A) the quantity of labor supplied always declines. 
B) neither the opportunity cost of an hour of leisure nor the quantity of labor supplied is likely to change. 
C) the opportunity cost of an hour of leisure declines. 
D) the opportunity cost of an hour of leisure increases.

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. 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 9

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

Accepted Answer

A) pay a higher wage rate and reduce employment from q2 to q1. 
B) pay a lower wage rate and increase employment from q3 to q4. 
C) increase employment because its MRP curve will shift rightward. 
D) decrease employment because its MRP curve will shift leftward. 
A) pay a higher wage rate and reduce employment from q2 to q1. 
B) pay a lower wage rate and increase employment from q3 to q4. 
C) increase employment because its MRP curve will shift rightward. 
D) decrease employment because its MRP curve will shift leftward.

Question 10

Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:

Accepted Answer

A) quantity of workers supplied will exceed the quantity of workers demanded. 
B) quantity of workers demanded will exceed the quantity of workers supplied. 
C) demand for labor will increase until the equilibrium wage rate is $17.85. 
D) supply of labor will decrease until the equilibrium wage rate is $17.85. 
A) quantity of workers supplied will exceed the quantity of workers demanded. 
B) quantity of workers demanded will exceed the quantity of workers supplied. 
C) demand for labor will increase until the equilibrium wage rate is $17.85. 
D) supply of labor will decrease until the equilibrium wage rate is $17.85.

Question 11

When wages rise, the opportunity cost of:

Accepted Answer

A) labor falls. 
B) labor rises. 
C) leisure falls. 
D) leisure rises. 
A) labor falls. 
B) labor rises. 
C) leisure falls. 
D) leisure rises.

Question 12

The more elastic the demand for the good labor produces, the less elastic the demand for labor.

Accepted Answer

A) True 
 B)False

Question 13

What is the cost minimization condition?

Accepted Answer

The cost minimization condition is the r

Question 14

After adjusting for institutional factors, economists have found that:

Accepted Answer

A) institutional factors explain all of the pay difference between men and women. 
B) workplace discrimination explains all of the pay difference between men and women. 
C) institutional factors explain some of the lower pay that women receive, but workplace discrimination also appears to play a role. 
D) there is no discrimination; all of the pay difference between men and women can be explained by differences in education and experience. 
A) institutional factors explain all of the pay difference between men and women. 
B) workplace discrimination explains all of the pay difference between men and women. 
C) institutional factors explain some of the lower pay that women receive, but workplace discrimination also appears to play a role. 
D) there is no discrimination; all of the pay difference between men and women can be explained by differences in education and experience.

Question 15

The labor supply curve is generally considered to be upward-sloping because the opportunity cost of leisure:

Accepted Answer

A) increases as wages get higher. 
B) decreases as wages get higher. 
C) remains unchanged as wages get higher. 
D) has nothing to do with wages. 
A) increases as wages get higher. 
B) decreases as wages get higher. 
C) remains unchanged as wages get higher. 
D) has nothing to do with wages.

Question 16

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 17

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:

Accepted Answer

A) rise because more workers are working with the same amount of capital. 
B) rise because fewer workers are working with the same amount of capital. 
C) fall because more workers are working with the same amount of capital. 
D) fall because fewer workers are working with the same amount of capital. 
A) rise because more workers are working with the same amount of capital. 
B) rise because fewer workers are working with the same amount of capital. 
C) fall because more workers are working with the same amount of capital. 
D) fall because fewer workers are working with the same amount of capital.

Question 18

A decrease in the wages of truck drivers might be explained by which of the following factors?

Accepted Answer

A) An increase in the price of gasoline 
B) An increase in competition within the trucking industry 
C) An increase in the demand for transportation 
D) An increase in the cost of air freight 
A) An increase in the price of gasoline 
B) An increase in competition within the trucking industry 
C) An increase in the demand for transportation 
D) An increase in the cost of air freight

Question 19

According to the author, the development of complex algorithms that perform "brain work" in the future is most likely to:

Accepted Answer

A) shorten the overall workweek. 
B) reduce overall employment. 
C) make the distribution of income more equal. 
D) make the distribution of income less equal. 
A) shorten the overall workweek. 
B) reduce overall employment. 
C) make the distribution of income more equal. 
D) make the distribution of income less equal.

Question 20

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.

Exam 17: Work and the Labor Market

Institutional discrimination exists when:

A higher marginal income tax rate reduces incentives to work because:

Historically, technology has:

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

According to economic theory, which of the following types of discrimination is the easiest to eliminate?

If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:

When wages rise:

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

Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:

When wages rise, the opportunity cost of:

The more elastic the demand for the good labor produces, the less elastic the demand for labor.

What is the cost minimization condition?

After adjusting for institutional factors, economists have found that:

The labor supply curve is generally considered to be upward-sloping because the opportunity cost of leisure:

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:

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:

A decrease in the wages of truck drivers might be explained by which of the following factors?

According to the author, the development of complex algorithms that perform "brain work" in the future is most likely to:

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

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

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters

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