Question 1

An outward shift in the labor demand curve implies that.

Accepted Answer

A) employers are now looking to hire more workers at any given wage. 
B) employers are now looking to hire more workers if the wage increases. 
C) employers are now looking to hire fewer workers regardless of the wage. 
D) demand for the firm's output likely fell. 
E) a greater number of workers are now more willing to work at any given wage. 
A) employers are now looking to hire more workers at any given wage. 
B) employers are now looking to hire more workers if the wage increases. 
C) employers are now looking to hire fewer workers regardless of the wage. 
D) demand for the firm's output likely fell. 
E) a greater number of workers are now more willing to work at any given wage. A

Question 2

Which is not a decision made by potential workers in the United States?

Accepted Answer

A) Deciding whether or not to participate in the labor force. 
B) Determining how to divide one's time between work and leisure. 
C) Choosing how much to produce to maximize firm profit. 
D) Choosing how much education to receive. 
E) Deciding which occupation to pursue. 
A) Deciding whether or not to participate in the labor force. 
B) Determining how to divide one's time between work and leisure. 
C) Choosing how much to produce to maximize firm profit. 
D) Choosing how much education to receive. 
E) Deciding which occupation to pursue. C

Question 3

What is likely to happen to the labor market equilibrium for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Accepted Answer

A) The number of firemen employed will increase while firemen wages will decrease. 
B) The number of firemen employed will decrease while firemen wages will decrease. 
C) The number of firemen employed will increase while firemen wages will increase. 
D) The number of firemen employed will decrease while firemen wages will increase. 
E) The number of firemen employed will remain the same while firemen wages will increase. 
A) The number of firemen employed will increase while firemen wages will decrease. 
B) The number of firemen employed will decrease while firemen wages will decrease. 
C) The number of firemen employed will increase while firemen wages will increase. 
D) The number of firemen employed will decrease while firemen wages will increase. 
E) The number of firemen employed will remain the same while firemen wages will increase. B

Question 4

Any economic model should be judged primarily on:

Accepted Answer

A) How realistic its assumptions are. 
B) How accurately its predictions match observed behavior. 
C) How easy the model is to use. 
D) How many aspects of real-world behavior and choices are incorporated in the model. 
E) How original the model is compared to other models. 
A) How realistic its assumptions are. 
B) How accurately its predictions match observed behavior. 
C) How easy the model is to use. 
D) How many aspects of real-world behavior and choices are incorporated in the model. 
E) How original the model is compared to other models.

Question 5

Labor market equilibrium is best characterized by:

Accepted Answer

A) A wage at which all people have a job. 
B) A wage at which all workers are above the poverty level. 
C) A wage at which the number of people willing to work equals the number of workers firms are willing to hire. 
D) A minimum wage at which everyone is willing to work. 
E) All workers receiving their ideal wage. 
A) A wage at which all people have a job. 
B) A wage at which all workers are above the poverty level. 
C) A wage at which the number of people willing to work equals the number of workers firms are willing to hire. 
D) A minimum wage at which everyone is willing to work. 
E) All workers receiving their ideal wage.

Question 6

The government is a player in the U.S.labor market in part because the government

Accepted Answer

A) determines who can go to college. 
B) assigns potential workers to particular industries. 
C) sets workplace worker safety regulations. 
D) suggests a minimum wage for firms to pay. 
E) funds employer-based health insurance benefits. 
A) determines who can go to college. 
B) assigns potential workers to particular industries. 
C) sets workplace worker safety regulations. 
D) suggests a minimum wage for firms to pay. 
E) funds employer-based health insurance benefits.

Question 7

An upward-sloping labor supply curve implies that

Accepted Answer

A) a firm can always hire more workers, even without increasing the wage. 
B) more workers are willing to work when wages are low. 
C) more workers are willing to work as the market wage increases. 
D) labor supplied is fixed. 
E) there is a continuously increasing demand for labor. 
A) a firm can always hire more workers, even without increasing the wage. 
B) more workers are willing to work when wages are low. 
C) more workers are willing to work as the market wage increases. 
D) labor supplied is fixed. 
E) there is a continuously increasing demand for labor.

Question 8

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage of economists.What could explain such a change?

Accepted Answer

A) The demand for economists recently increased while the supply of economists remained unchanged. 
B) The demand for economists recently decreased while the supply of economists remained unchanged. 
C) The demand for economists remained unchanged while the supply of economists increased. 
D) The demand for economists remained unchanged while the supply of economists decreased. 
E) The demand for economists recently decreased while the supply of economists recently increased. 
A) The demand for economists recently increased while the supply of economists remained unchanged. 
B) The demand for economists recently decreased while the supply of economists remained unchanged. 
C) The demand for economists remained unchanged while the supply of economists increased. 
D) The demand for economists remained unchanged while the supply of economists decreased. 
E) The demand for economists recently decreased while the supply of economists recently increased.

Question 9

When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates

Accepted Answer

A) the average wage. 
B) the average logged wage. 
C) the average years of schooling. 
D) the economic return to each additional year of schooling measured in dollars. 
E) the economic return to each additional year of schooling measured in percentage terms. 
A) the average wage. 
B) the average logged wage. 
C) the average years of schooling. 
D) the economic return to each additional year of schooling measured in dollars. 
E) the economic return to each additional year of schooling measured in percentage terms.

Question 10

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.How many more workers are willing to work at a yearly salary of $40,000 than at a yearly salary of $35,000?

Accepted Answer

A) 50 
B) 100 
C) 500 
D) 1,000 
E) 5,000 
A) 50 
B) 100 
C) 500 
D) 1,000 
E) 5,000

Question 11

What type of questions cannot be answered with theory or facts alone?

Accepted Answer

A) Normative questions. 
B) Positive questions. 
C) Factual questions. 
D) Empirical questions. 
E) Econometric questions. 
A) Normative questions. 
B) Positive questions. 
C) Factual questions. 
D) Empirical questions. 
E) Econometric questions.

Question 12

A firm's labor demand curve is typically

Accepted Answer

A) a vertical line. 
B) a horizontal line. 
C) upward-sloping. 
D) downward-sloping. 
E) associated with a slope equal in absolute value to the slope of the labor supply curve. 
A) a vertical line. 
B) a horizontal line. 
C) upward-sloping. 
D) downward-sloping. 
E) associated with a slope equal in absolute value to the slope of the labor supply curve.

Question 13

The labor supply curve shows how many workers are willing to work

Accepted Answer

A) in a particular industry. 
B) at any given time. 
C) at the minimum wage. 
D) at any given wage. 
E) in order to maximize the firm's profit. 
A) in a particular industry. 
B) at any given time. 
C) at the minimum wage. 
D) at any given wage. 
E) in order to maximize the firm's profit.

Question 14

Which of the following affects a person's decision to work?

Accepted Answer

A) The price of consumption goods relative to the wage. 
B) The person's income from non-labor sources. 
C) How much the person enjoys working. 
D) The amount of fringe benefits offered to the person. 
E) All of the above affect a person's decision to work. 
A) The price of consumption goods relative to the wage. 
B) The person's income from non-labor sources. 
C) How much the person enjoys working. 
D) The amount of fringe benefits offered to the person. 
E) All of the above affect a person's decision to work.

Question 15

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

Accepted Answer

A) Normative questions. 
B) Positive questions. 
C) Labor questions. 
D) Econometric questions. 
E) Public policy questions. 
A) Normative questions. 
B) Positive questions. 
C) Labor questions. 
D) Econometric questions. 
E) Public policy questions.

Question 16

The labor demand curve shows how many workers the firm is willing to hire

Accepted Answer

A) at any particular time. 
B) at a particular amount of labor supplied. 
C) at any given wage. 
D) into high-skill jobs. 
E) when demand for the firm's output is low. 
A) at any particular time. 
B) at a particular amount of labor supplied. 
C) at any given wage. 
D) into high-skill jobs. 
E) when demand for the firm's output is low.

Question 17

A firm's demand for labor is derived in part from

Accepted Answer

A) government policy. 
B) consumer demand for the firm's product. 
C) unionized workers. 
D) the firm's sunk costs. 
E) the value of the firm's stock price. 
A) government policy. 
B) consumer demand for the firm's product. 
C) unionized workers. 
D) the firm's sunk costs. 
E) the value of the firm's stock price.

Question 18

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.What yearly salary must be paid to encourage 6,000 workers to accept jobs?

Accepted Answer

A) $30,000 
B) $40,000 
C) $50,000 
D) $60,000 
E) $70,000 
A) $30,000 
B) $40,000 
C) $50,000 
D) $60,000 
E) $70,000

Question 19

What is the difference between normative and positive economics?

Accepted Answer

A) Normative economics concerns the how and why of economic activity while positive economics concerns what should be. 
B) Positive economics concerns what is, while normative economics concerns what should be. 
C) Both concern the how and why of economic activity, while only positive economics also concerns what should be. 
D) Neither deals with the how and why of economic activity, but normative economics concerns what should be. 
E) Positive economics is used in Microeconomics, while normative economics is used in Macroeconomics. 
A) Normative economics concerns the how and why of economic activity while positive economics concerns what should be. 
B) Positive economics concerns what is, while normative economics concerns what should be. 
C) Both concern the how and why of economic activity, while only positive economics also concerns what should be. 
D) Neither deals with the how and why of economic activity, but normative economics concerns what should be. 
E) Positive economics is used in Microeconomics, while normative economics is used in Macroeconomics.

Question 20

When forming theories, economists must be careful to

Accepted Answer

A) include all known facts and details. 
B) omit crucial factors. 
C) mirror the real world as realistically but as simply as possible. 
D) consider historical behavior and policies. 
E) limit the analysis to two variables. 
A) include all known facts and details. 
B) omit crucial factors. 
C) mirror the real world as realistically but as simply as possible. 
D) consider historical behavior and policies. 
E) limit the analysis to two variables.

An outward shift in the labor demand curve implies that.

Which is not a decision made by potential workers in the United States?

What is likely to happen to the labor market equilibrium for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Any economic model should be judged primarily on:

Labor market equilibrium is best characterized by:

The government is a player in the U.S.labor market in part because the government

An upward-sloping labor supply curve implies that

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage of economists.What could explain such a change?

When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.How many more workers are willing to work at a yearly salary of $40,000 than at a yearly salary of $35,000?

What type of questions cannot be answered with theory or facts alone?

A firm's labor demand curve is typically

The labor supply curve shows how many workers are willing to work

Which of the following affects a person's decision to work?

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

The labor demand curve shows how many workers the firm is willing to hire

A firm's demand for labor is derived in part from

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.What yearly salary must be paid to encourage 6,000 workers to accept jobs?

What is the difference between normative and positive economics?

When forming theories, economists must be careful to

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 1: Introduction to Labor Economics

An outward shift in the labor demand curve implies that.

Which is not a decision made by potential workers in the United States?

What is likely to happen to the labor market equilibrium for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Any economic model should be judged primarily on:

Labor market equilibrium is best characterized by:

The government is a player in the U.S.labor market in part because the government

An upward-sloping labor supply curve implies that

The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage of economists.What could explain such a change?

When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.How many more workers are willing to work at a yearly salary of $40,000 than at a yearly salary of $35,000?

What type of questions cannot be answered with theory or facts alone?

A firm's labor demand curve is typically

The labor supply curve shows how many workers are willing to work

Which of the following affects a person's decision to work?

What type of questions can be answered with economic tools without interjecting any value judgment as to whether the particular outcome is desirable or harmful?

The labor demand curve shows how many workers the firm is willing to hire

A firm's demand for labor is derived in part from

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.What yearly salary must be paid to encourage 6,000 workers to accept jobs?

What is the difference between normative and positive economics?

When forming theories, economists must be careful to

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.How many more workers are willing to work at a yearly salary of $40,000 than at a yearly salary of $35,000?

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.What yearly salary must be paid to encourage 6,000 workers to accept jobs?