Question 1

Explain what means-tested programs are and how they affect the poverty rate in the United States.

Accepted Answer

These programs provide assista

Question 2

According to the signaling effect,college education

Accepted Answer

A)  enhances productivity. 
B)  signals productivity. 
C)  is an investment. 
D)  increases the intelligence of the student. 
A)  enhances productivity. 
B)  signals productivity. 
C)  is an investment. 
D)  increases the intelligence of the student.

Question 3

In a competitive labor market

Accepted Answer

A)  the firm can hire all the labor it wants at the going market wage rate. 
B)  the market wage rate is the marginal revenue product of labor. 
C)  firms will hire as long as the marginal revenue product of labor is less than or equal to the market wage. 
D)  all of the above 
A)  the firm can hire all the labor it wants at the going market wage rate. 
B)  the market wage rate is the marginal revenue product of labor. 
C)  firms will hire as long as the marginal revenue product of labor is less than or equal to the market wage. 
D)  all of the above

Question 4

The input-substitution effect decreases the labor input per unit of output while the output effect

Accepted Answer

A)  decreases the price of the output. 
B)  decreases the total output. 
C)  increases the price of the output. 
D)  increases the total output. 
A)  decreases the price of the output. 
B)  decreases the total output. 
C)  increases the price of the output. 
D)  increases the total output.

Question 5

If labor supply is low relative to labor demand,then we can expect the equilibrium wage to be

Accepted Answer

A)  demand-determined. 
B)  relatively high. 
C)  relatively low. 
D)  neither high nor low, but very volatile. 
A)  demand-determined. 
B)  relatively high. 
C)  relatively low. 
D)  neither high nor low, but very volatile.

Question 6

The marginal benefit of labor equals the marginal-revenue product of labor,which is

Accepted Answer

A)  the change in output from one additional unit of labor. 
B)  the extra revenue generated by one additional unit of labor. 
C)  equal to price of output only. 
D)  equal to marginal cost only. 
A)  the change in output from one additional unit of labor. 
B)  the extra revenue generated by one additional unit of labor. 
C)  equal to price of output only. 
D)  equal to marginal cost only.

Question 7

A profit-maximizing firm will hire labor as long as the marginal revenue product of labor is less than the wage.

Accepted Answer

A) True 
 B)False

Question 8

-Refer to Figure 17.1.This firm is currently hiring 16 workers.This firm should

Accepted Answer

A)  do nothing because it is maximizing profits. 
B)  reduce employment to 15 workers to increase profits. 
C)  reduce employment to 14 workers to increase profits. 
D)  increase employment to 17 workers to increase profits. 
A)  do nothing because it is maximizing profits. 
B)  reduce employment to 15 workers to increase profits. 
C)  reduce employment to 14 workers to increase profits. 
D)  increase employment to 17 workers to increase profits.

Question 9

-Refer to Figure 17.2.If the demand for labor decreases,then equilibrium wage will ________ and equilibrium quantity of hours will ________.

Accepted Answer

A)  rise; fall 
B)  fall; fall 
C)  rise; rise 
D)  fall; rise 
A)  rise; fall 
B)  fall; fall 
C)  rise; rise 
D)  fall; rise

Question 10

Graphically illustrate and explain the effect of an increase in product price on the demand curve for labor.

Accepted Answer

Since the MRP curve is the sho

Question 11

Married couples have a higher poverty rate than female-headed households.

Accepted Answer

A) True 
 B)False

Question 12

How can an increase in the minimum-wage affect the restaurant industry?

Accepted Answer

A)  It can create a shortage of restaurant workers. 
B)  It can lead to an increase in prices for restaurant meals. 
C)  It can create a surplus of restaurant workers. 
D)  Both B and C are correct. 
A)  It can create a shortage of restaurant workers. 
B)  It can lead to an increase in prices for restaurant meals. 
C)  It can create a surplus of restaurant workers. 
D)  Both B and C are correct.

Question 13

How does occupational licensing affect the labor market for a particular occupation?

Accepted Answer

The supply of labor

Question 14

Define the marginal revenue product of labor.Explain two factors that could cause the marginal revenue product curve for labor to shift to the right.

Accepted Answer

The marginal revenue product of labor is

Question 15

Assume that a minimum wage is created and imposed above the equilibrium wage in an otherwise perfectly competitive labor market.Which of the following will NOT occur as a result of this new law?

Accepted Answer

A)  The quantity of labor seeking jobs will rise. 
B)  The unemployment rate will rise. 
C)  The level of employment will increase. 
D)  None of the above will occur. 
A)  The quantity of labor seeking jobs will rise. 
B)  The unemployment rate will rise. 
C)  The level of employment will increase. 
D)  None of the above will occur.

Question 16

Fred's Pizza Palace sells pizzas in a competitive market.The price of pizza is $1.25 each.Hourly output varies with the amount of labor hired as follows:
   
Fill in the column for marginal product of labor and marginal revenue product.

Accepted Answer

The answer of Fred's Pizza Palace sells pizzas in a...

Question 17

Government tax and government spending programs ________ the 2004 poverty rate.

Accepted Answer

A)  decreased 
B)  increased 
C)  did not effect 
D)  eliminated 
A)  decreased 
B)  increased 
C)  did not effect 
D)  eliminated

Question 18

Explain how cash incentives to the poor affect incentives to work.

Accepted Answer

Cash incentives can affect the incentive

Question 19

The demand curve for labor will slope downward because of

Accepted Answer

A)  the input-substitution effect. 
B)  the output effect. 
C)  diminishing returns to scale. 
D)  Both A and B are correct. 
A)  the input-substitution effect. 
B)  the output effect. 
C)  diminishing returns to scale. 
D)  Both A and B are correct.

Question 20

Increased international trade results in fewer imports to the United States.

Accepted Answer

A) True 
 B)False

Explain what means-tested programs are and how they affect the poverty rate in the United States.

According to the signaling effect,college education

In a competitive labor market

The input-substitution effect decreases the labor input per unit of output while the output effect

If labor supply is low relative to labor demand,then we can expect the equilibrium wage to be

The marginal benefit of labor equals the marginal-revenue product of labor,which is

A profit-maximizing firm will hire labor as long as the marginal revenue product of labor is less than the wage.

-Refer to Figure 17.1.This firm is currently hiring 16 workers.This firm should

-Refer to Figure 17.2.If the demand for labor decreases,then equilibrium wage will and equilibrium quantity of hours will .

Graphically illustrate and explain the effect of an increase in product price on the demand curve for labor.

Married couples have a higher poverty rate than female-headed households.

How can an increase in the minimum-wage affect the restaurant industry?

How does occupational licensing affect the labor market for a particular occupation?

Define the marginal revenue product of labor.Explain two factors that could cause the marginal revenue product curve for labor to shift to the right.

Assume that a minimum wage is created and imposed above the equilibrium wage in an otherwise perfectly competitive labor market.Which of the following will NOT occur as a result of this new law?

Fred's Pizza Palace sells pizzas in a competitive market.The price of pizza is $1.25 each.Hourly output varies with the amount of labor hired as follows: Fill in the column for marginal product of labor and marginal revenue product.

Government tax and government spending programs ________ the 2004 poverty rate.

Explain how cash incentives to the poor affect incentives to work.

The demand curve for labor will slope downward because of

Increased international trade results in fewer imports to the United States.

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

Explain what means-tested programs are and how they affect the poverty rate in the United States.

According to the signaling effect,college education

In a competitive labor market

The input-substitution effect decreases the labor input per unit of output while the output effect

If labor supply is low relative to labor demand,then we can expect the equilibrium wage to be

The marginal benefit of labor equals the marginal-revenue product of labor,which is

A profit-maximizing firm will hire labor as long as the marginal revenue product of labor is less than the wage.

-Refer to Figure 17.1.This firm is currently hiring 16 workers.This firm should

-Refer to Figure 17.2.If the demand for labor decreases,then equilibrium wage will ________ and equilibrium quantity of hours will ________.

Graphically illustrate and explain the effect of an increase in product price on the demand curve for labor.

Married couples have a higher poverty rate than female-headed households.

How can an increase in the minimum-wage affect the restaurant industry?

How does occupational licensing affect the labor market for a particular occupation?

Define the marginal revenue product of labor.Explain two factors that could cause the marginal revenue product curve for labor to shift to the right.

Assume that a minimum wage is created and imposed above the equilibrium wage in an otherwise perfectly competitive labor market.Which of the following will NOT occur as a result of this new law?

Fred's Pizza Palace sells pizzas in a competitive market.The price of pizza is $1.25 each.Hourly output varies with the amount of labor hired as follows: Fill in the column for marginal product of labor and marginal revenue product.

Government tax and government spending programs ________ the 2004 poverty rate.

Explain how cash incentives to the poor affect incentives to work.

The demand curve for labor will slope downward because of

Increased international trade results in fewer imports to the United States.

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

-Refer to Figure 17.2.If the demand for labor decreases,then equilibrium wage will and equilibrium quantity of hours will .