Question 1

Which of the following could lead to an increase in labor supply?

Accepted Answer

A)  more people retire at a younger age 
B)  an increase in labor force participation 
C)  tighter restrictions on immigration policy 
D)  an increase in the wage rate 
A)  more people retire at a younger age 
B)  an increase in labor force participation 
C)  tighter restrictions on immigration policy 
D)  an increase in the wage rate

Question 2

Chief executives in the United States are not paid as much as their foreign counterparts.

Accepted Answer

A) True 
 B)False

Question 3

Table 17.5
-A firm producing ink pens reports the production information in Table 17.5.The pens sell in a competitive market at a price of $0.50 each.The firm hires workers in a competitive labor market at a wage of $9 per hour.How many workers should the firm hire? Explain your answer.

Accepted Answer

The firm should hire three workers.The m

Question 4

Explain why the demand for labor is a derived demand.

Accepted Answer

The demand for labor

Question 5

Table 17.3
-Refer to Table 17.3.If the market price of the product is $5 and the wage rate is $40,the firm should hire ________ workers.

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 6

One of the problems with calculating the true amount of discrimination that takes place in the labor market is

Accepted Answer

A)  the difficulty in measuring average wage differentials. 
B)  inadequate reporting of discrimination. 
C)  the difficulty of measuring productivity differences across workers. 
D)  that inflation leads to higher wages over time. 
A)  the difficulty in measuring average wage differentials. 
B)  inadequate reporting of discrimination. 
C)  the difficulty of measuring productivity differences across workers. 
D)  that inflation leads to higher wages over time.

Question 7

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

Accepted Answer

A) True 
 B)False

Question 8

Employment and the minimum wage are positively correlated.

Accepted Answer

A) True 
 B)False

Question 9

Use a diagram of a competitive labor market and a representative firm to explain how much labor a profit-maximizing firm will hire.

Accepted Answer

The firm will hire up to the p

Question 10

We cannot easily predict whether an increase in the wage will cause a worker to demand more leisure time or less leisure time.

Accepted Answer

A) True 
 B)False

Question 11

Table 17.2
-Refer to Table 17.2.The marginal revenue product of the ________ worker is $150.

Accepted Answer

A)  second 
B)  third 
C)  fourth 
D)  fifth 
A)  second 
B)  third 
C)  fourth 
D)  fifth

Question 12

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then ________ hours of labor will be employed.

Accepted Answer

A)  25,000 
B)  30,000 
C)  36,000 
D)  > 36,000 
A)  25,000 
B)  30,000 
C)  36,000 
D)  > 36,000

Question 13

Suppose that you currently work 20 hours a week at $10 per hour and your employer tells you he must reduce your wage to $8 per hour.Using the concept of income and substitution effects,explain how you might react.

Accepted Answer

A reduction in the wage rate c

Question 14

The implementation of TANF helped reduce the number of people on welfare.

Accepted Answer

A) True 
 B)False

Question 15

Table 17.4
-Refer to Table 17.4.If the wage rate is $12 and the output sells for $3 per unit,how many workers will the firm hire?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 16

If the hourly wage rate is above the equilibrium wage,then

Accepted Answer

A)  there is a surplus of labor. 
B)  the quantity of labor demanded is equal to the quantity of labor supplied. 
C)  the demand for labor will fall and the supply of labor will rise. 
D)  the quantity of labor demanded will be greater than the quantity of labor supplied. 
A)  there is a surplus of labor. 
B)  the quantity of labor demanded is equal to the quantity of labor supplied. 
C)  the demand for labor will fall and the supply of labor will rise. 
D)  the quantity of labor demanded will be greater than the quantity of labor supplied.

Question 17

-Refer to Figure 17.2.If the hourly wage is $15,then

Accepted Answer

A)  supply for labor will increase. 
B)  quantity supplied of labor is 25,000 hours. 
C)  demand for labor will increase. 
D)  quantity demanded for labor is 25,000 hours. 
A)  supply for labor will increase. 
B)  quantity supplied of labor is 25,000 hours. 
C)  demand for labor will increase. 
D)  quantity demanded for labor is 25,000 hours.

Question 18

The market income includes earnings from which of the following?

Accepted Answer

A)  wages and salaries 
B)  bonds and stocks 
C)  real estate 
D)  all of the above 
A)  wages and salaries 
B)  bonds and stocks 
C)  real estate 
D)  all of the above

Question 19

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then

Accepted Answer

A)  demand will rise. 
B)  quantity demanded will decrease. 
C)  quantity demanded will increase. 
D)  demand will fall. 
A)  demand will rise. 
B)  quantity demanded will decrease. 
C)  quantity demanded will increase. 
D)  demand will fall.

Question 20

There is a negative relationship between the price of labor and the quantity of labor supplied,ceteris paribus.

Accepted Answer

A) True 
 B)False

Which of the following could lead to an increase in labor supply?

Chief executives in the United States are not paid as much as their foreign counterparts.

Table 17.5 -A firm producing ink pens reports the production information in Table 17.5.The pens sell in a competitive market at a price of $0.50 each.The firm hires workers in a competitive labor market at a wage of $9 per hour.How many workers should the firm hire? Explain your answer.

Explain why the demand for labor is a derived demand.

Table 17.3 -Refer to Table 17.3.If the market price of the product is $5 and the wage rate is $40,the firm should hire ________ workers.

One of the problems with calculating the true amount of discrimination that takes place in the labor market is

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

Employment and the minimum wage are positively correlated.

Use a diagram of a competitive labor market and a representative firm to explain how much labor a profit-maximizing firm will hire.

We cannot easily predict whether an increase in the wage will cause a worker to demand more leisure time or less leisure time.

Table 17.2 -Refer to Table 17.2.The marginal revenue product of the ________ worker is $150.

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then ________ hours of labor will be employed.

Suppose that you currently work 20 hours a week at $10 per hour and your employer tells you he must reduce your wage to $8 per hour.Using the concept of income and substitution effects,explain how you might react.

The implementation of TANF helped reduce the number of people on welfare.

Table 17.4 -Refer to Table 17.4.If the wage rate is $12 and the output sells for $3 per unit,how many workers will the firm hire?

If the hourly wage rate is above the equilibrium wage,then

-Refer to Figure 17.2.If the hourly wage is $15,then

The market income includes earnings from which of the following?

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then

There is a negative relationship between the price of labor and the quantity of labor supplied,ceteris paribus.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

International Trade and Public Policy

Filters

Exam 17: The Labor Market and the Distribution of Income

Which of the following could lead to an increase in labor supply?

Chief executives in the United States are not paid as much as their foreign counterparts.

Table 17.5 -A firm producing ink pens reports the production information in Table 17.5.The pens sell in a competitive market at a price of $0.50 each.The firm hires workers in a competitive labor market at a wage of $9 per hour.How many workers should the firm hire? Explain your answer.

Explain why the demand for labor is a derived demand.

Table 17.3 -Refer to Table 17.3.If the market price of the product is $5 and the wage rate is $40,the firm should hire ________ workers.

One of the problems with calculating the true amount of discrimination that takes place in the labor market is

Labor economists consider an increase in demand for skill the most important reason for growing inequality.

Employment and the minimum wage are positively correlated.

Use a diagram of a competitive labor market and a representative firm to explain how much labor a profit-maximizing firm will hire.

We cannot easily predict whether an increase in the wage will cause a worker to demand more leisure time or less leisure time.

Table 17.2 -Refer to Table 17.2.The marginal revenue product of the ________ worker is $150.

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then ________ hours of labor will be employed.

Suppose that you currently work 20 hours a week at $10 per hour and your employer tells you he must reduce your wage to $8 per hour.Using the concept of income and substitution effects,explain how you might react.

The implementation of TANF helped reduce the number of people on welfare.

Table 17.4 -Refer to Table 17.4.If the wage rate is $12 and the output sells for $3 per unit,how many workers will the firm hire?

If the hourly wage rate is above the equilibrium wage,then

-Refer to Figure 17.2.If the hourly wage is $15,then

The market income includes earnings from which of the following?

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then

There is a negative relationship between the price of labor and the quantity of labor supplied,ceteris paribus.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

International Trade and Public Policy

Filters