Question 1

Assume that a minimum wage law is enacted and imposed on an otherwise perfectly competitive labor market. We can expect all of the following except

Accepted Answer

A)  the number of people seeking employment to increase. 
B)  some people to be laid off. 
C)  the number of laborers demanded to decrease. 
D)  a greater unemployment rate. 
E)  more people to gain employment. 
A)  the number of people seeking employment to increase. 
B)  some people to be laid off. 
C)  the number of laborers demanded to decrease. 
D)  a greater unemployment rate. 
E)  more people to gain employment. E

Question 2

The market system is better than other systems because

Accepted Answer

A)  there is no need for a central planning authority 
B)  buyers and sellers do not have to be coordinated 
C)  all players act in their own self-interest 
D)  inefficient producers shut down 
E)  all of these 
A)  there is no need for a central planning authority 
B)  buyers and sellers do not have to be coordinated 
C)  all players act in their own self-interest 
D)  inefficient producers shut down 
E)  all of these E

Question 3

Figure 3.4
  
-In Figure 3.4, the reason for the wage differential could be the fact that

Accepted Answer

A)  market A is the market for a risky occupation. 
B)  market B consists of unskilled labor. 
C)  market A consists of workers with more human capital. 
D)  market B consists of workers with less human capital. 
E)  all of these are true. 
A)  market A is the market for a risky occupation. 
B)  market B consists of unskilled labor. 
C)  market A consists of workers with more human capital. 
D)  market B consists of workers with less human capital. 
E)  all of these are true. E

Question 4

Current unemployment for teenagers (between 16 and 19 years of age)

Accepted Answer

A)  is about 15% 
B)  is about 25% 
C)  is about 40% 
D)  is about 55% 
E)  exceeds 60% 
A)  is about 15% 
B)  is about 25% 
C)  is about 40% 
D)  is about 55% 
E)  exceeds 60%

Question 5

-In Table 3.2, if the price is $5, a ____ of ____ units will occur.

Accepted Answer

A)  shortage; 8 
B)  shortage; 6 
C)  surplus; 8 
D)  surplus; 6 
E)  shortage; 19 
A)  shortage; 8 
B)  shortage; 6 
C)  surplus; 8 
D)  surplus; 6 
E)  shortage; 19

Question 6

-In Table 3.2, the equilibrium price is

Accepted Answer

A)  $1. 
B)  $2. 
C)  $3. 
D)  $4. 
E)  $5. 
A)  $1. 
B)  $2. 
C)  $3. 
D)  $4. 
E)  $5.

Question 7

-Refer to Table 3.1. If the government imposes a price of $2,

Accepted Answer

A)  the price will be above equilibrium. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus equal to 20 units will result. 
E)  a shortage equal to 20 units will result. 
A)  the price will be above equilibrium. 
B)  the price will fall to $1 because producers will be forced to incur losses. 
C)  demand will increase. 
D)  a surplus equal to 20 units will result. 
E)  a shortage equal to 20 units will result.

Question 8

By imposing a ban on the use of trans fat in New York City restaurants, the government

Accepted Answer

A)  created a positive image of New York as a healthy environment. 
B)  reduced Wall Street arbitrage in trans fats and other oils. 
C)  lowered the price of restaurant meals in general. 
D)  raised the cost of food that relied on trans fat. 
E)  stimulated demand for a black market in trans fat. 
A)  created a positive image of New York as a healthy environment. 
B)  reduced Wall Street arbitrage in trans fats and other oils. 
C)  lowered the price of restaurant meals in general. 
D)  raised the cost of food that relied on trans fat. 
E)  stimulated demand for a black market in trans fat.

Question 9

In 1900 about ____ of all Americans worked in farming or ranching; today less than ____ of the population is involved in these industries.

Accepted Answer

A)  80%; 20% 
B)  75%; 10% 
C)  60%; 10% 
D)  50%; 5% 
E)  50%; 2% 
A)  80%; 20% 
B)  75%; 10% 
C)  60%; 10% 
D)  50%; 5% 
E)  50%; 2%

Question 10

Prices above the equilibrium price cause a(n)

Accepted Answer

A)  shortage to develop and an increase in prices. 
B)  shortage to develop and a decrease in prices. 
C)  surplus to develop and an increase in prices. 
D)  surplus to develop and a decrease in prices. 
E)  increase in supply. 
A)  shortage to develop and an increase in prices. 
B)  shortage to develop and a decrease in prices. 
C)  surplus to develop and an increase in prices. 
D)  surplus to develop and a decrease in prices. 
E)  increase in supply.

Question 11

As the wage rate increases, the quantity demanded of labor in a market will

Accepted Answer

A)  increase. 
B)  decrease. 
C)  first increase and then decrease. 
D)  first decrease and then increase. 
E)  remain constant. 
A)  increase. 
B)  decrease. 
C)  first increase and then decrease. 
D)  first decrease and then increase. 
E)  remain constant.

Question 12

A ban will eliminate the legal supply of a product, service, or resource.

Accepted Answer

A) True 
 B)False

Question 13

Specialization according to comparative advantage can

Accepted Answer

A)  generate more output than being self-sufficient 
B)  make economies be less dependent on others 
C)  is very costly and hard to implement 
D)  cause too much of one type of good to be produced 
E)  All of these 
A)  generate more output than being self-sufficient 
B)  make economies be less dependent on others 
C)  is very costly and hard to implement 
D)  cause too much of one type of good to be produced 
E)  All of these

Question 14

A compensating wage differential is a wage difference that

Accepted Answer

A)  makes up for the high risk or poor working conditions of a job. 
B)  results because of women and minorities being paid less. 
C)  leads to more risks taken on the job. 
D)  is attributable to different demands for labor. 
E)  is due to discrimination. 
A)  makes up for the high risk or poor working conditions of a job. 
B)  results because of women and minorities being paid less. 
C)  leads to more risks taken on the job. 
D)  is attributable to different demands for labor. 
E)  is due to discrimination.

Question 15

-In Table 3.2, the equilibrium quantity is

Accepted Answer

A)  2. 
B)  4. 
C)  6. 
D)  8. 
E)  10. 
A)  2. 
B)  4. 
C)  6. 
D)  8. 
E)  10.

Question 16

"Efficiency" means

Accepted Answer

A)  a producer is using the very best production techniques 
B)  everyone pays his fair share 
C)  those who cannot pay will not get any 
D)  the consumer is always right 
E)  All of these. 
A)  a producer is using the very best production techniques 
B)  everyone pays his fair share 
C)  those who cannot pay will not get any 
D)  the consumer is always right 
E)  All of these.

Question 17

-In Table 3.3, the equilibrium quantity is

Accepted Answer

A)  10. 
B)  15. 
C)  20. 
D)  25. 
E)  30. 
A)  10. 
B)  15. 
C)  20. 
D)  25. 
E)  30.

Question 18

One result of specialization is that economies become less dependent on each other.

Accepted Answer

A) True 
 B)False

Question 19

Innovations, which result in people continually looking for ways to excel, earn more money, and live better, occur due to

Accepted Answer

A)  the rapid development in the IT sector 
B)  competition 
C)  government regulation 
D)  greedy people 
E)  China's entry into the World Trade Organization 
A)  the rapid development in the IT sector 
B)  competition 
C)  government regulation 
D)  greedy people 
E)  China's entry into the World Trade Organization

Question 20

An increase in the minimum wage, which is above the equilibrium wage, will result in

Accepted Answer

A)  firms hiring less workers 
B)  more people going to look for a job 
C)  adverse affects on low-skilled workers 
D)  more teenagers looking for jobs 
E)  All of these. 
A)  firms hiring less workers 
B)  more people going to look for a job 
C)  adverse affects on low-skilled workers 
D)  more teenagers looking for jobs 
E)  All of these.

Assume that a minimum wage law is enacted and imposed on an otherwise perfectly competitive labor market. We can expect all of the following except

The market system is better than other systems because

Figure 3.4 -In Figure 3.4, the reason for the wage differential could be the fact that

Current unemployment for teenagers (between 16 and 19 years of age)

-In Table 3.2, if the price is $5, a of units will occur.

-In Table 3.2, the equilibrium price is

-Refer to Table 3.1. If the government imposes a price of $2,

By imposing a ban on the use of trans fat in New York City restaurants, the government

In 1900 about of all Americans worked in farming or ranching; today less than of the population is involved in these industries.

Prices above the equilibrium price cause a(n)

As the wage rate increases, the quantity demanded of labor in a market will

A ban will eliminate the legal supply of a product, service, or resource.

Specialization according to comparative advantage can

A compensating wage differential is a wage difference that

-In Table 3.2, the equilibrium quantity is

"Efficiency" means

-In Table 3.3, the equilibrium quantity is

One result of specialization is that economies become less dependent on each other.

Innovations, which result in people continually looking for ways to excel, earn more money, and live better, occur due to

An increase in the minimum wage, which is above the equilibrium wage, will result in

Economics and the World Around You

Markets and the Market Process

The Firm and the Consumer

Costs and Profit Maximization

Competition

Business, Society, and the Government

Government Intervention Versus Free Markets

An Overview of the National and International Economies

Macroeconomic Measures

Unemployment, Inflation, and Business Cycles

Macroeconomic Equilibrium: Aggregate Demand and Supply

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy, Business Cycles, and Growth

Issues in International Trade and Finance

Globalization

Filters

Exam 3: Applications of Demand and Supply

Assume that a minimum wage law is enacted and imposed on an otherwise perfectly competitive labor market. We can expect all of the following except

The market system is better than other systems because

Figure 3.4 -In Figure 3.4, the reason for the wage differential could be the fact that

Current unemployment for teenagers (between 16 and 19 years of age)

-In Table 3.2, if the price is $5, a ____ of ____ units will occur.

-In Table 3.2, the equilibrium price is

-Refer to Table 3.1. If the government imposes a price of $2,

By imposing a ban on the use of trans fat in New York City restaurants, the government

In 1900 about ____ of all Americans worked in farming or ranching; today less than ____ of the population is involved in these industries.

Prices above the equilibrium price cause a(n)

As the wage rate increases, the quantity demanded of labor in a market will

A ban will eliminate the legal supply of a product, service, or resource.

Specialization according to comparative advantage can

A compensating wage differential is a wage difference that

-In Table 3.2, the equilibrium quantity is

"Efficiency" means

-In Table 3.3, the equilibrium quantity is

One result of specialization is that economies become less dependent on each other.

Innovations, which result in people continually looking for ways to excel, earn more money, and live better, occur due to

An increase in the minimum wage, which is above the equilibrium wage, will result in

Economics and the World Around You

Markets and the Market Process

The Firm and the Consumer

Costs and Profit Maximization

Competition

Business, Society, and the Government

Government Intervention Versus Free Markets

An Overview of the National and International Economies

Macroeconomic Measures

Unemployment, Inflation, and Business Cycles

Macroeconomic Equilibrium: Aggregate Demand and Supply

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy, Business Cycles, and Growth

Issues in International Trade and Finance

Globalization

Filters

-In Table 3.2, if the price is $5, a of units will occur.

In 1900 about of all Americans worked in farming or ranching; today less than of the population is involved in these industries.