Question 1

The demand for brain surgeons tends to be relatively inelastic because there are many substitutes for brain surgeons.

Accepted Answer

A) True 
 B)False

Question 2

Which antidiscrimination act was signed into law in 2009?

Accepted Answer

A)  Civil Rights Act 
B)  Lily Ledbetter Act 
C)  Age Discrimination in Employment Act 
D)  Fair Labor Standards Act 
A)  Civil Rights Act 
B)  Lily Ledbetter Act 
C)  Age Discrimination in Employment Act 
D)  Fair Labor Standards Act

Question 3

Which of these is a benefit of union membership for an employee?

Accepted Answer

A)  Dues are paid on a monthly basis. 
B)  Management's authority is limited by the union contract. 
C)  Work rules are more rigid. 
D)  If a strike is called, the worker must comply with the union's demand to cease working. 
A)  Dues are paid on a monthly basis. 
B)  Management's authority is limited by the union contract. 
C)  Work rules are more rigid. 
D)  If a strike is called, the worker must comply with the union's demand to cease working.

Question 4

A decrease in the price of capital will cause a decrease in the demand for labor.

Accepted Answer

A) True 
 B)False

Question 5

Describe the argument for the wage differentials between union and nonunion jobs. Include a graph to support your explanation.

Accepted Answer

The general theoretical argument for uni

Question 6

The market demand for labor is the horizontal summation of the demands of individual firms.

Accepted Answer

A) True 
 B)False

Question 7

Which of these would shift the market labor supply curve to the right?

Accepted Answer

A)  a higher wage rate 
B)  fewer fringe benefits 
C)  better public transportation 
D)  an increase in income tax rates 
A)  a higher wage rate 
B)  fewer fringe benefits 
C)  better public transportation 
D)  an increase in income tax rates

Question 8

Nonwork-related activities are known as leisure in economics.

Accepted Answer

A) True 
 B)False

Question 9

Which theory of economic discrimination was proposed by the influential economist Gary Becker?

Accepted Answer

A)  theory of discriminatory tastes 
B)  segmented markets approach 
C)  job crowding hypothesis 
D)  dual labor market hypothesis 
A)  theory of discriminatory tastes 
B)  segmented markets approach 
C)  job crowding hypothesis 
D)  dual labor market hypothesis

Question 10

Competition in labor markets may fail to eliminate wage differentials because

Accepted Answer

A)  of the low cost of recruiting and training new workers. 
B)  women are more mobile in the labor market than men. 
C)  women continue to select occupations with more flexible career paths. 
D)  of the low adjustment costs of firing unproductive workers. 
A)  of the low cost of recruiting and training new workers. 
B)  women are more mobile in the labor market than men. 
C)  women continue to select occupations with more flexible career paths. 
D)  of the low adjustment costs of firing unproductive workers.

Question 11

If a sector of an industry is unionized

Accepted Answer

A)  wages in that sector will decrease. 
B)  employment in that sector will increase. 
C)  employment in the nonunion sector will increase. 
D)  wages in the nonunion sector will increase. 
A)  wages in that sector will decrease. 
B)  employment in that sector will increase. 
C)  employment in the nonunion sector will increase. 
D)  wages in the nonunion sector will increase.

Question 12

As wages rise, if an employee works the same number of hours as before, then the

Accepted Answer

A)  substitution effect dominates the income effect. 
B)  substitution effect and the income effect are of equal magnitude. 
C)  income effect dominates the substitution effect. 
D)  employee's income will fall. 
A)  substitution effect dominates the income effect. 
B)  substitution effect and the income effect are of equal magnitude. 
C)  income effect dominates the substitution effect. 
D)  employee's income will fall.

Question 13

The insider-outsider theory of economic discrimination states that women tend to have to work in certain low-paying jobs, leading to a wage differential versus men.

Accepted Answer

A) True 
 B)False

Question 14

Jeff owns a small business installing home security systems priced at $1,000 each. By himself, he can install four systems per month. If he hires an assistant, a total of ten systems can be installed. If he hires two assistants, a total of fifteen systems can be installed. Assuming that the price stays the same, what is the marginal revenue product of the first assistant and the marginal revenue product of the second assistant?

Accepted Answer

A)  $6,000; $5,000 
B)  $6,000; $11,000 
C)  $10,000; $11,000 
D)  $10,000; $15,000 
A)  $6,000; $5,000 
B)  $6,000; $11,000 
C)  $10,000; $11,000 
D)  $10,000; $15,000

Question 15

A large increase in the value of the stock market will shift the labor supply curve to the left.

Accepted Answer

A) True 
 B)False

Question 16

Television reality shows have become more popular in recent years. In the market for television personalities, this increased

Accepted Answer

A)  supply. 
B)  demand. 
C)  both supply and demand. 
D)  neither supply nor demand. 
A)  supply. 
B)  demand. 
C)  both supply and demand. 
D)  neither supply nor demand.

Question 17

The market labor supply curve is

Accepted Answer

A)  positively sloped. 
B)  negatively sloped. 
C)  perfectly flat. 
D)  backward bending. 
A)  positively sloped. 
B)  negatively sloped. 
C)  perfectly flat. 
D)  backward bending.

Question 18

Which of these statements is TRUE?
I. The Lily Ledbetter Act was signed into law in 1909.
II. The Civil Rights Act contains the provision that it is unlawful to "refuse to hire or discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual's race, color, religion, sex, or national origin."
III. The Equal Pay Act amended the Fair Labor Standards Act and requires that men and women receive equal pay for equal work.

Accepted Answer

A)  I only 
B)  II only 
C)  II and III 
D)  I and III 
A)  I only 
B)  II only 
C)  II and III 
D)  I and III

Question 19

(Figure: Labor Supply) Based on the figure, the substitution effect ceases to dominate the income effect at a wage of

Accepted Answer

A)  $15. 
B)  $25. 
C)  $35. 
D)  $45. 
A)  $15. 
B)  $25. 
C)  $35. 
D)  $45.

Question 20

The income effect means that

Accepted Answer

A)  leisure and work are perfect substitutes. 
B)  leisure and work are perfect complements. 
C)  if wages increase, hours of work increase. 
D)  if wages increase, hours of work decrease. 
A)  leisure and work are perfect substitutes. 
B)  leisure and work are perfect complements. 
C)  if wages increase, hours of work increase. 
D)  if wages increase, hours of work decrease.

The demand for brain surgeons tends to be relatively inelastic because there are many substitutes for brain surgeons.

Which antidiscrimination act was signed into law in 2009?

Which of these is a benefit of union membership for an employee?

A decrease in the price of capital will cause a decrease in the demand for labor.

Describe the argument for the wage differentials between union and nonunion jobs. Include a graph to support your explanation.

The market demand for labor is the horizontal summation of the demands of individual firms.

Which of these would shift the market labor supply curve to the right?

Nonwork-related activities are known as leisure in economics.

Which theory of economic discrimination was proposed by the influential economist Gary Becker?

Competition in labor markets may fail to eliminate wage differentials because

If a sector of an industry is unionized

As wages rise, if an employee works the same number of hours as before, then the

The insider-outsider theory of economic discrimination states that women tend to have to work in certain low-paying jobs, leading to a wage differential versus men.

A large increase in the value of the stock market will shift the labor supply curve to the left.

Television reality shows have become more popular in recent years. In the market for television personalities, this increased

The market labor supply curve is

(Figure: Labor Supply) Based on the figure, the substitution effect ceases to dominate the income effect at a wage of

The income effect means that

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

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Externalities and Public Goods

Network Goods

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Exam 11: The Labor Market

The demand for brain surgeons tends to be relatively inelastic because there are many substitutes for brain surgeons.

Which antidiscrimination act was signed into law in 2009?

Which of these is a benefit of union membership for an employee?

A decrease in the price of capital will cause a decrease in the demand for labor.

Describe the argument for the wage differentials between union and nonunion jobs. Include a graph to support your explanation.

The market demand for labor is the horizontal summation of the demands of individual firms.

Which of these would shift the market labor supply curve to the right?

Nonwork-related activities are known as leisure in economics.

Which theory of economic discrimination was proposed by the influential economist Gary Becker?

Competition in labor markets may fail to eliminate wage differentials because

If a sector of an industry is unionized

As wages rise, if an employee works the same number of hours as before, then the

The insider-outsider theory of economic discrimination states that women tend to have to work in certain low-paying jobs, leading to a wage differential versus men.

A large increase in the value of the stock market will shift the labor supply curve to the left.

Television reality shows have become more popular in recent years. In the market for television personalities, this increased

The market labor supply curve is

(Figure: Labor Supply) Based on the figure, the substitution effect ceases to dominate the income effect at a wage of

The income effect means that

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters