Exam 19: Factor Markets and the Distribution of Income

Barry's Brewpub is considering hiring more brewmasters. A pint of brew sells for $3. The market wage of a brewmaster is $150 per day. Assuming that the market for beer is perfectly competitive, Barry's Brewpub will hire another brewmaster only if Barry believes the new brewmaster will:

(Multiple Choice)

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Question 41

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

(Multiple Choice)

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Question 42

When a firm is a perfect competitor in the product market, its demand curve for labor will _ because the _ product declines as additional workers are hired.

(Multiple Choice)

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Question 43

The clearest sign of discrimination against an individual is that that individual is paid less than the value of his or her marginal productivity.

(True/False)

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Question 44

The government increases the sales tax on all goods. The government does not change the tax on income earned from labor. What happens?

(Multiple Choice)

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Question 45

Suppose the labor market for plumbers is in equilibrium. Which of the following might DECREASE the wage for plumbers?

(Multiple Choice)

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Question 46

Which of the following does NOT partially explain wage differentials?

(Multiple Choice)

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Question 47

Within the labor-leisure framework, when an individual's income effect is stronger than the substitution effect from a wage increase, it will result in:

(Multiple Choice)

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Question 48

Javon has 80 hours per week to allocate between labor and leisure. Javon's wage is $8 per hour. Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis. According to the optimal time allocation rule, Javon should allocate his time such that the marginal utility of an additional hour of leisure is:

(Multiple Choice)

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Question 49

The quantity demanded of labor will decrease if:

(Multiple Choice)

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Question 50

The time allocation budget line shows an individual's _____ and the income that allows consumption of marketed goods.

(Multiple Choice)

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Question 51

Use the following to answer questions: -(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords. Assume that the market for power cords is perfectly competitive. If the price of a power cord is $4 and the wage rate is $160 per hour, the profit-maximizing quantity of labor is _____ worker(s).

(Multiple Choice)

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Question 52

Diana's labor supply curve changes slope and begins to bend backward at a wage of $44. Thus, for a wage _ $44, the substitution effect of a wage increase will _.

(Multiple Choice)

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Question 53

When wages increase, if the substitution effect dominates, the quantity of labor supplied will increase.

(True/False)

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Question 54

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. If the equilibrium market wage for bricklayers falls from $110 to $100, the _ bricklayers will _.

(Multiple Choice)

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Question 55

Use the following to answer questions: -(Table: Workers and Corn Output) Look at the table Workers and Corn Output. Laura is a price-taking farmer who produces corn. Assume the wage rate for workers is $125 and the price per bushel of corn is $10. Suppose Laura is employing seven workers. If she reduces employment to six workers, her profits will:

(Multiple Choice)

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Question 56

A change in the wage rate will shift the supply curve in the market for labor.

(True/False)

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Question 57

In the United States just after the turn of the twenty-first century, 70% of total income, by far the largest share, took the form of:

(Multiple Choice)

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Question 58

Wage differentials that arise because of innate differences in ability or talent are consistent with the marginal productivity theory of income distribution.

(True/False)

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Question 59

Over the past several years, the demand for phone operators has fallen dramatically. Which of the following would account for this development?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 369

Barry's Brewpub is considering hiring more brewmasters. A pint of brew sells for $3. The market wage of a brewmaster is $150 per day. Assuming that the market for beer is perfectly competitive, Barry's Brewpub will hire another brewmaster only if Barry believes the new brewmaster will:

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

When a firm is a perfect competitor in the product market, its demand curve for labor will _ because the _ product declines as additional workers are hired.

The clearest sign of discrimination against an individual is that that individual is paid less than the value of his or her marginal productivity.

The government increases the sales tax on all goods. The government does not change the tax on income earned from labor. What happens?

Suppose the labor market for plumbers is in equilibrium. Which of the following might DECREASE the wage for plumbers?

Which of the following does NOT partially explain wage differentials?

Within the labor-leisure framework, when an individual's income effect is stronger than the substitution effect from a wage increase, it will result in:

The quantity demanded of labor will decrease if:

The time allocation budget line shows an individual's _____ and the income that allows consumption of marketed goods.

Diana's labor supply curve changes slope and begins to bend backward at a wage of $44. Thus, for a wage _ $44, the substitution effect of a wage increase will _.

When wages increase, if the substitution effect dominates, the quantity of labor supplied will increase.

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. If the equilibrium market wage for bricklayers falls from $110 to $100, the _ bricklayers will _.

A change in the wage rate will shift the supply curve in the market for labor.

In the United States just after the turn of the twenty-first century, 70% of total income, by far the largest share, took the form of:

Wage differentials that arise because of innate differences in ability or talent are consistent with the marginal productivity theory of income distribution.

Over the past several years, the demand for phone operators has fallen dramatically. Which of the following would account for this development?

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Uncertainty, Risk, and Private Information

Filters

Exam 19: Factor Markets and the Distribution of Income

Barry's Brewpub is considering hiring more brewmasters. A pint of brew sells for $3. The market wage of a brewmaster is $150 per day. Assuming that the market for beer is perfectly competitive, Barry's Brewpub will hire another brewmaster only if Barry believes the new brewmaster will:

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

When a firm is a perfect competitor in the product market, its demand curve for labor will _____ because the _____ product declines as additional workers are hired.

The clearest sign of discrimination against an individual is that that individual is paid less than the value of his or her marginal productivity.

The government increases the sales tax on all goods. The government does not change the tax on income earned from labor. What happens?

Suppose the labor market for plumbers is in equilibrium. Which of the following might DECREASE the wage for plumbers?

Which of the following does NOT partially explain wage differentials?

Within the labor-leisure framework, when an individual's income effect is stronger than the substitution effect from a wage increase, it will result in:

The quantity demanded of labor will decrease if:

The time allocation budget line shows an individual's _____ and the income that allows consumption of marketed goods.

Diana's labor supply curve changes slope and begins to bend backward at a wage of $44. Thus, for a wage _____ $44, the substitution effect of a wage increase will _____.

When wages increase, if the substitution effect dominates, the quantity of labor supplied will increase.

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. If the equilibrium market wage for bricklayers falls from $110 to $100, the _____ bricklayers will _____.

A change in the wage rate will shift the supply curve in the market for labor.

In the United States just after the turn of the twenty-first century, 70% of total income, by far the largest share, took the form of:

Wage differentials that arise because of innate differences in ability or talent are consistent with the marginal productivity theory of income distribution.

Over the past several years, the demand for phone operators has fallen dramatically. Which of the following would account for this development?

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Uncertainty, Risk, and Private Information

Filters

When a firm is a perfect competitor in the product market, its demand curve for labor will _ because the _ product declines as additional workers are hired.

Diana's labor supply curve changes slope and begins to bend backward at a wage of $44. Thus, for a wage _ $44, the substitution effect of a wage increase will _.

Use the following to answer questions: Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. If the equilibrium market wage for bricklayers falls from $110 to $100, the _ bricklayers will _.