Question 1

What will improvements in the productivity of labour tend to do?

Accepted Answer

A)  decrease wages 
B)  decrease the supply of labour 
C)  increase wages 
D)  increase the supply of labour 
A)  decrease wages 
B)  decrease the supply of labour 
C)  increase wages 
D)  increase the supply of labour

Question 2

Individuals who are workaholics tend to have higher incomes than individuals who are not.

Accepted Answer

A) True 
 B)False

Question 3

Education will typically lead to an increase in human capital and an increase in wage rates.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of wage discrimination?

Accepted Answer

A)  People are paid different salaries based upon education. 
B)  People are paid different salaries based upon ethnicity. 
C)  People are paid different salaries based upon talent. 
D)  People are paid different salaries based upon their willingness to work. 
A)  People are paid different salaries based upon education. 
B)  People are paid different salaries based upon ethnicity. 
C)  People are paid different salaries based upon talent. 
D)  People are paid different salaries based upon their willingness to work.

Question 5

Which of the following is likely to increase the supply of labour?

Accepted Answer

A)  a decrease in fringe benefits 
B)  a relaxation of restrictions on immigration 
C)  an increase in the value placed on leisure 
D)  a decrease in the population 
A)  a decrease in fringe benefits 
B)  a relaxation of restrictions on immigration 
C)  an increase in the value placed on leisure 
D)  a decrease in the population

Question 6

According to Medoff and Freeman, how might unions make workers more productive?

Accepted Answer

A)  by providing a forum for the communication of worker grievances 
B)  by increasing the potential for promotion 
C)  by raising wages 
D)  by increasing the number of jobs 
A)  by providing a forum for the communication of worker grievances 
B)  by increasing the potential for promotion 
C)  by raising wages 
D)  by increasing the number of jobs

Question 7

The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product.

Accepted Answer

A) True 
 B)False

Question 8

What is the most significant factor, enabling unions to negotiate increased wages for their members?

Accepted Answer

A)  Unions increase the demand for labour. 
B)  Unions decrease the supply of labour in the union sector. 
C)  Unions increase the marginal product of labour. 
D)  Unions increase the supply of labour in the union sector. 
A)  Unions increase the demand for labour. 
B)  Unions decrease the supply of labour in the union sector. 
C)  Unions increase the marginal product of labour. 
D)  Unions increase the supply of labour in the union sector.

Question 9

If poverty is defined using an absolute measure, then poverty can never be eliminated.

Accepted Answer

A) True 
 B)False

Question 10

The demand for labour is a derived demand. Until what point do employers hire workers?

Accepted Answer

A)  when the wage rate equals the marginal revenue product of labour 
B)  when last worker hired adds nothing to total output 
C)  when the wage rate equals the average product of labour 
D)  when the average product of labour is zero 
A)  when the wage rate equals the marginal revenue product of labour 
B)  when last worker hired adds nothing to total output 
C)  when the wage rate equals the average product of labour 
D)  when the average product of labour is zero

Question 11

Which province has the highest union rate in Canada?

Accepted Answer

A)  Newfoundland and Labrador 
B)  Alberta 
C)  British Colombia 
D)  Quebec 
A)  Newfoundland and Labrador 
B)  Alberta 
C)  British Colombia 
D)  Quebec

Question 12

Currently, there are fewer male than female nurses. This is proof that there is gender discrimination in the nursing profession.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of in-kind income?

Accepted Answer

A)  a cash grant 
B)  an unemployment cheque 
C)  a welfare payment 
D)  a housing subsidy 
A)  a cash grant 
B)  an unemployment cheque 
C)  a welfare payment 
D)  a housing subsidy

Question 14

Why would there still be observed inequality, even if every individual earned the same total income over his or her lifetime?

Accepted Answer

A)  because people earn more in middle age 
B)  because single people earn more in their youth 
C)  because married people earn more in their youth 
D)  because people earn more when they are very old 
A)  because people earn more in middle age 
B)  because single people earn more in their youth 
C)  because married people earn more in their youth 
D)  because people earn more when they are very old

Question 15

Which of the following best explains why a minimum wage may NOT be effective as a method of alleviating relative poverty?

Accepted Answer

A)  Minimum wages are too low to reduce poverty. 
B)  The recipients of minimum wages are typically not facing poverty. 
C)  Minimum wages reduce the productivity of labour. 
D)  There is no national minimum wage in Canada. 
A)  Minimum wages are too low to reduce poverty. 
B)  The recipients of minimum wages are typically not facing poverty. 
C)  Minimum wages reduce the productivity of labour. 
D)  There is no national minimum wage in Canada.

Question 16

In 2009, what is the official poverty rate for a family of four living in a smaller rural area, as determined by LICO?

Accepted Answer

A)  approximately $7000 
B)  approximately $12 000 
C)  approximately $18 000 
D)  approximately $23 000 
A)  approximately $7000 
B)  approximately $12 000 
C)  approximately $18 000 
D)  approximately $23 000

Question 17

Which of the following best explains why there are differences between the average earnings of men and women?

Accepted Answer

A)  It may be partially due to factors other than wage discrimination. 
B)  It shows that men on average invest more in human capital than do women. 
C)  It indicates that men are on average better educated than women. 
D)  It only occurs because of discrimination. 
A)  It may be partially due to factors other than wage discrimination. 
B)  It shows that men on average invest more in human capital than do women. 
C)  It indicates that men are on average better educated than women. 
D)  It only occurs because of discrimination.

Question 18

Which of the following might shift an individual's supply curve of labour to the left?

Accepted Answer

A)  a decrease in nonwage income 
B)  winning the lottery 
C)  a decrease in the willingness of businesses to hire additional workers 
D)  an increase in the wage 
A)  a decrease in nonwage income 
B)  winning the lottery 
C)  a decrease in the willingness of businesses to hire additional workers 
D)  an increase in the wage

Question 19

How is the principle of diminishing marginal utility used to justify income redistribution?

Accepted Answer

The argument proposes that as income ris

Question 20

Which of the following best describes a progressive tax system?

Accepted Answer

A)  It redistributes income from lower income levels to higher income levels. 
B)  It imposes higher marginal tax rates on higher income. 
C)  It redistributes income to promote economic growth. 
D)  It is designed to replace a system of sales taxes. 
A)  It redistributes income from lower income levels to higher income levels. 
B)  It imposes higher marginal tax rates on higher income. 
C)  It redistributes income to promote economic growth. 
D)  It is designed to replace a system of sales taxes.

What will improvements in the productivity of labour tend to do?

Individuals who are workaholics tend to have higher incomes than individuals who are not.

Education will typically lead to an increase in human capital and an increase in wage rates.

Which of the following is an example of wage discrimination?

Which of the following is likely to increase the supply of labour?

According to Medoff and Freeman, how might unions make workers more productive?

The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product.

What is the most significant factor, enabling unions to negotiate increased wages for their members?

If poverty is defined using an absolute measure, then poverty can never be eliminated.

The demand for labour is a derived demand. Until what point do employers hire workers?

Which province has the highest union rate in Canada?

Currently, there are fewer male than female nurses. This is proof that there is gender discrimination in the nursing profession.

Which of the following is an example of in-kind income?

Why would there still be observed inequality, even if every individual earned the same total income over his or her lifetime?

Which of the following best explains why a minimum wage may NOT be effective as a method of alleviating relative poverty?

In 2009, what is the official poverty rate for a family of four living in a smaller rural area, as determined by LICO?

Which of the following best explains why there are differences between the average earnings of men and women?

Which of the following might shift an individual's supply curve of labour to the left?

How is the principle of diminishing marginal utility used to justify income redistribution?

Which of the following best describes a progressive tax system?

The Role and Method of Economics

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Environment

Filters

Exam 11: Labour Markets and the Distribution of Income

What will improvements in the productivity of labour tend to do?

Individuals who are workaholics tend to have higher incomes than individuals who are not.

Education will typically lead to an increase in human capital and an increase in wage rates.

Which of the following is an example of wage discrimination?

Which of the following is likely to increase the supply of labour?

According to Medoff and Freeman, how might unions make workers more productive?

The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product.

What is the most significant factor, enabling unions to negotiate increased wages for their members?

If poverty is defined using an absolute measure, then poverty can never be eliminated.

The demand for labour is a derived demand. Until what point do employers hire workers?

Which province has the highest union rate in Canada?

Currently, there are fewer male than female nurses. This is proof that there is gender discrimination in the nursing profession.

Which of the following is an example of in-kind income?

Why would there still be observed inequality, even if every individual earned the same total income over his or her lifetime?

Which of the following best explains why a minimum wage may NOT be effective as a method of alleviating relative poverty?

In 2009, what is the official poverty rate for a family of four living in a smaller rural area, as determined by LICO?

Which of the following best explains why there are differences between the average earnings of men and women?

Which of the following might shift an individual's supply curve of labour to the left?

How is the principle of diminishing marginal utility used to justify income redistribution?

Which of the following best describes a progressive tax system?

The Role and Method of Economics

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Environment

Filters