Question 1

Holding other factors constant, an increase in the capital stock ______ the real wage and ______ employment.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  increases; does not change 
D)  decreases; increases 
A)  increases; increases 
B)  increases; decreases 
C)  increases; does not change 
D)  decreases; increases

Question 2

In recent decades, slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S. explains:

Accepted Answer

A)  slower real wage growth and double-digit rates of unemployment. 
B)  slower real wage growth and increasing wage inequality. 
C)  slower real wage growth and an increase in the number of people with jobs. 
D)  increasing wage inequality and double-digit rates unemployment. 
A)  slower real wage growth and double-digit rates of unemployment. 
B)  slower real wage growth and increasing wage inequality. 
C)  slower real wage growth and an increase in the number of people with jobs. 
D)  increasing wage inequality and double-digit rates unemployment.

Question 3

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. $$\begin{array} { | c | c | } 
\hline \text { Number of Workers } & \text { Pizzas Baked Per Day } \
\hline 0 & 0 \
\hline 1 & 10 \
\hline 2 & 18 \
\hline 3 & 24 \
\hline 4 & 30 \
\hline 5 & 32 \
\hline
\end{array}$$ How many workers will Joe hire if he must pay each one $45 a day?

Accepted Answer

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

Question 4

In the twentieth century, average real wages have risen substantially:

Accepted Answer

A)  only in the United States. 
B)  in industrial countries excluding the United States. 
C)  in industrial countries including the United States. 
D)  in neither the United States nor other industrial countries. 
A)  only in the United States. 
B)  in industrial countries excluding the United States. 
C)  in industrial countries including the United States. 
D)  in neither the United States nor other industrial countries.

Question 5

The following table provides information about production at the XYZ-TV Company. $$\begin{array} { | c | c | c | c | } 
\hline \text { Number of Workers } & \text { TVs Produced } & \text { Marginal Product } & \begin{array} { c } 
\text { Value of Marginal } \
\text { Product }
\end{array} \
\hline 0 & 0 & \cdots & \cdots \
\hline 1 & 35 & 35 & \$ 35,000 \
\hline 2 & 68 & 33 & \$ 33,000 \
\hline 3 & 99 & 31 & \$ 31,000 \
\hline 4 & 128 & 29 & \$ 29,000 \
\hline 5 & 155 & 27 & \$ 27,000 \
\hline
\end{array}$$ How many workers will the XYZ-TV Company hire if the going wage for TV production workers is $28,000?

Accepted Answer

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

Question 6

Structural unemployment is increased when the wage is kept above the market-clearing wage by:

Accepted Answer

A)  unemployment insurance. 
B)  worker mobility. 
C)  skill-biased technological change. 
D)  labor unions. 
A)  unemployment insurance. 
B)  worker mobility. 
C)  skill-biased technological change. 
D)  labor unions.

Question 7

Each person who is 16 years or older is considered to be in one of the following categories:

Accepted Answer

A)  employed, unemployed, or discouraged worker. 
B)  part-time worker, full-time worker, or unemployed. 
C)  part-time worker, full-time worker, or out of the labor force. 
D)  employed, unemployed, or out of the labor force. 
A)  employed, unemployed, or discouraged worker. 
B)  part-time worker, full-time worker, or unemployed. 
C)  part-time worker, full-time worker, or out of the labor force. 
D)  employed, unemployed, or out of the labor force.

Question 8

Government regulations that increase the cost to the employer of hiring workers will:

Accepted Answer

A)  increase the demand for labor. 
B)  decrease the demand for labor. 
C)  increase the supply of labor. 
D)  decrease the supply of labor. 
A)  increase the demand for labor. 
B)  decrease the demand for labor. 
C)  increase the supply of labor. 
D)  decrease the supply of labor.

Question 9

The increase in wage inequality resulting from globalization can be reversed through:

Accepted Answer

A)  revoking the principle of comparative advantage. 
B)  increases in worker mobility. 
C)  decreases in worker mobility. 
D)  making markets more competitive. 
A)  revoking the principle of comparative advantage. 
B)  increases in worker mobility. 
C)  decreases in worker mobility. 
D)  making markets more competitive.

Question 10

Which of the following is an example of cyclical unemployment?

Accepted Answer

A)  Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. 
B)  Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. 
C)  George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. 
D)  Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked. 
A)  Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. 
B)  Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. 
C)  George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. 
D)  Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.

Question 11

If the existence of alternative opportunities makes people become less willing to work in poultry processing plants, then the real wage of unskilled workers in poultry processing plants is predicted to ______ and the employment of unskilled workers in poultry processing plants is predicted to ______.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  increase; not change 
D)  decrease; decrease 
A)  increase; increase 
B)  increase; decrease 
C)  increase; not change 
D)  decrease; decrease

Question 12

The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:

Accepted Answer

A)  higher relative prices and a larger labor supply. 
B)  higher relative prices and technological progress. 
C)  technological progress and increases in the capital stock. 
D)  technological progress and increases in the labor supply. 
A)  higher relative prices and a larger labor supply. 
B)  higher relative prices and technological progress. 
C)  technological progress and increases in the capital stock. 
D)  technological progress and increases in the labor supply.

Question 13

As the real wage decreases, the quantity of labor demanded ______ and the quantity of labor supplied _______.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; decreases 
D)  decreases; increases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; decreases 
D)  decreases; increases

Question 14

Frictional unemployment is:

Accepted Answer

A)  the unemployment that results when people retire or leave the labor force. 
B)  the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. 
C)  the extra unemployment that occurs during periods of recession. 
D)  short-term unemployment that is associated with the process of matching workers with jobs. 
A)  the unemployment that results when people retire or leave the labor force. 
B)  the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. 
C)  the extra unemployment that occurs during periods of recession. 
D)  short-term unemployment that is associated with the process of matching workers with jobs.

Holding other factors constant, an increase in the capital stock the real wage and employment.

In recent decades, slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S. explains:

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of Workers Pizzas Baked Per Day 0 0 1 10 2 18 3 24 4 30 5 32 How many workers will Joe hire if he must pay each one $45 a day?

In the twentieth century, average real wages have risen substantially:

Structural unemployment is increased when the wage is kept above the market-clearing wage by:

Each person who is 16 years or older is considered to be in one of the following categories:

Government regulations that increase the cost to the employer of hiring workers will:

The increase in wage inequality resulting from globalization can be reversed through:

Which of the following is an example of cyclical unemployment?

If the existence of alternative opportunities makes people become less willing to work in poultry processing plants, then the real wage of unskilled workers in poultry processing plants is predicted to and the employment of unskilled workers in poultry processing plants is predicted to .

The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:

As the real wage decreases, the quantity of labor demanded and the quantity of labor supplied _.

Frictional unemployment is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Filters

Exam 6: Measuring the Price Level and Inflation

Holding other factors constant, an increase in the capital stock ______ the real wage and ______ employment.

In recent decades, slower growth in the demand for labor accompanied by an accelerated growth in the supply of labor in the U.S. explains:

Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of Workers Pizzas Baked Per Day 0 0 1 10 2 18 3 24 4 30 5 32 How many workers will Joe hire if he must pay each one $45 a day?

In the twentieth century, average real wages have risen substantially:

Structural unemployment is increased when the wage is kept above the market-clearing wage by:

Each person who is 16 years or older is considered to be in one of the following categories:

Government regulations that increase the cost to the employer of hiring workers will:

The increase in wage inequality resulting from globalization can be reversed through:

Which of the following is an example of cyclical unemployment?

The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:

As the real wage decreases, the quantity of labor demanded ______ and the quantity of labor supplied _______.

Frictional unemployment is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Filters

Holding other factors constant, an increase in the capital stock the real wage and employment.

As the real wage decreases, the quantity of labor demanded and the quantity of labor supplied _.