Question 1

Discrimination in hiring practices is influenced by all of the following factors,except:

Accepted Answer

A) the number of firms that discriminate in hiring. 
B) the desire of firms to make a profit. 
C) the presence of nondiscriminating employers in the market. 
D) the minimum wage. 
A) the number of firms that discriminate in hiring. 
B) the desire of firms to make a profit. 
C) the presence of nondiscriminating employers in the market. 
D) the minimum wage. D

Question 2

In determining who bears the burden of the social security tax,it is important to consider:

Accepted Answer

A) the number of workers employed. 
B) the way it is imposed on employers and employees. 
C) the supply elasticity of labor. 
D) the total labor hours supplied by each worker. 
A) the number of workers employed. 
B) the way it is imposed on employers and employees. 
C) the supply elasticity of labor. 
D) the total labor hours supplied by each worker. C

Question 3

Which of the following is true of an efficiency wage?

Accepted Answer

A) It refers to the markup of the actual wage over the minimum wage. 
B) It refers to the wage paid to workers above their opportunity cost,which compels them to work harder. 
C) It refers to the wage paid to workers that minimizes total expenditure on labor costs. 
D) It measures the markup of wages paid to workers and their actual output. 
A) It refers to the markup of the actual wage over the minimum wage. 
B) It refers to the wage paid to workers above their opportunity cost,which compels them to work harder. 
C) It refers to the wage paid to workers that minimizes total expenditure on labor costs. 
D) It measures the markup of wages paid to workers and their actual output. B

Question 4

What is the long run effect of a pay-as-you-go Social Security program on the gross domestic product [GDP] of a country?

Accepted Answer

The pay-as-you-go Social Security system

Question 5

Which of the following is true for a competitive firm operating in an input market cartel?

Accepted Answer

A) The individual firm's demand curve for the input is downward sloping when it acts alone. 
B) The individual firm's supply curve is horizontal when it acts alone and upward sloping with coordinated hiring. 
C) The individual firm's supply curve is upward sloping when the firm acts alone but horizontal otherwise. 
D) The individual firm's supply curve is horizontal when it acts alone and downward sloping with coordinated hiring. 
A) The individual firm's demand curve for the input is downward sloping when it acts alone. 
B) The individual firm's supply curve is horizontal when it acts alone and upward sloping with coordinated hiring. 
C) The individual firm's supply curve is upward sloping when the firm acts alone but horizontal otherwise. 
D) The individual firm's supply curve is horizontal when it acts alone and downward sloping with coordinated hiring.

Question 6

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.  
-According to Figure 18-2,the proportion of the per-unit tax paid by employees is:

Accepted Answer

A) CB/CA. 
B) BA/OB. 
C) AB/CA. 
D) OA/OC. 
A) CB/CA. 
B) BA/OB. 
C) AB/CA. 
D) OA/OC.

Question 7

Which of the following is consistent with the National Collegiate Athletic Association [NCAA] representing a cartel among schools in their "hiring" of student-athletes?

Accepted Answer

A) Many schools violate NCAA rules. 
B) Some schools make large profits from their basketball and football programs. 
C) As television has increased the demand for college athletic events,the number and severity of NCAA penalties have increased. 
D) The wage paid to an athlete under NCAA guidelines is equal to the athlete's marginal value product. 
A) Many schools violate NCAA rules. 
B) Some schools make large profits from their basketball and football programs. 
C) As television has increased the demand for college athletic events,the number and severity of NCAA penalties have increased. 
D) The wage paid to an athlete under NCAA guidelines is equal to the athlete's marginal value product.

Question 8

Which of the following facts indicate that the official wage paid by the National Collegiate Athletic Association [NCAA] to the athletes is below the market-clearing level?

Accepted Answer

A) Athletes practicing for greater number of hours before the seasonal tournaments 
B) Schools awarding more athletic scholarships to the students 
C) Athletes receiving cars,apartments,and cash payments 
D) Athletes receiving offers for promotional advertisement campaigns 
A) Athletes practicing for greater number of hours before the seasonal tournaments 
B) Schools awarding more athletic scholarships to the students 
C) Athletes receiving cars,apartments,and cash payments 
D) Athletes receiving offers for promotional advertisement campaigns

Question 9

The real burden of a social security tax would be:

Accepted Answer

A) higher on workers if it is collected from employees rather than from employers. 
B) higher on workers if it is collected from employers rather than from employees. 
C) higher on workers if it is partly collected from employers rather than entirely collected from employees. 
D) the same regardless of whether it is collected from employers or employees. 
A) higher on workers if it is collected from employees rather than from employers. 
B) higher on workers if it is collected from employers rather than from employees. 
C) higher on workers if it is partly collected from employers rather than entirely collected from employees. 
D) the same regardless of whether it is collected from employers or employees.

Question 10

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.  
-According to Figure 18-2,the proportion of the per-unit tax paid by the employers is:

Accepted Answer

A) OA/OB. 
B) AB/AC. 
C) BC/AC. 
D) BC/AB. 
A) OA/OB. 
B) AB/AC. 
C) BC/AC. 
D) BC/AB.

Question 11

Which of the following will result when the pay-as-you-go Social Security program is introduced in a country?

Accepted Answer

A) The supply curve of saving will shift rightward 
B) The market interest rate will decline 
C) Gross investment in the economy will decline 
D) The investment demand curve will become inelastic 
A) The supply curve of saving will shift rightward 
B) The market interest rate will decline 
C) Gross investment in the economy will decline 
D) The investment demand curve will become inelastic

Question 12

Consider two groups of workers both facing identical downward-sloping demand curves.The labor supply curve of group A workers is relatively elastic,while that of group B workers is relatively inelastic.Which of the following will result if the government imposes a minimum wage in both these labor market?

Accepted Answer

A) Group A workers will experience a higher disemployment effect than group B workers. 
B) Group B workers will experience a higher disemployment effect than group A workers. 
C) The total unemployment experienced by Group A workers will be higher than Group B workers. 
D) The total unemployment experienced by Group B workers will be higher than Group A workers. 
A) Group A workers will experience a higher disemployment effect than group B workers. 
B) Group B workers will experience a higher disemployment effect than group A workers. 
C) The total unemployment experienced by Group A workers will be higher than Group B workers. 
D) The total unemployment experienced by Group B workers will be higher than Group A workers.

Question 13

Which of the following is a major economic impact of immigration in the U.S.?

Accepted Answer

A) An increase in the labor supply 
B) An increase in employment opportunities 
C) A fall in the population density 
D) An increase in the number of retirees 
A) An increase in the labor supply 
B) An increase in employment opportunities 
C) A fall in the population density 
D) An increase in the number of retirees

Question 14

The figure given below shows the demand and supply of unskilled labor that determines the equilibrium wage rate in the labor market.The minimum wage rate at $5.15 is higher than the equilibrium wage rate at $4.  
-Refer to Figure 18-1.Which of the following distances represents the disemployment effect of the minimum wage?

Accepted Answer

A) L1L3 
B) L2L3 
C) L2 L1 
D) OL2 
A) L1L3 
B) L2L3 
C) L2 L1 
D) OL2

Question 15

The cost of the mandated minimum wage is most likely to be borne by the:

Accepted Answer

A) high income taxpayers who must pay the taxes to finance the program. 
B) consumers who purchase the goods produced by unskilled workers. 
C) businesses whose profits will fall due to the higher wage rates. 
D) government which pays the difference between the equilibrium and the minimum wage. 
A) high income taxpayers who must pay the taxes to finance the program. 
B) consumers who purchase the goods produced by unskilled workers. 
C) businesses whose profits will fall due to the higher wage rates. 
D) government which pays the difference between the equilibrium and the minimum wage.

Question 16

The figure given below shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'.  
-Refer to Figure 18-3.The increase in the income of the capital owners in the country,due to immigration,is represented by the area:

Accepted Answer

A) ABC. 
B) wACw'. 
C) ABCE. 
D) wABw'. 
A) ABC. 
B) wACw'. 
C) ABCE. 
D) wABw'.

Question 17

Which of the following is true regarding the incidence of the social security tax?

Accepted Answer

A) Regardless of how the tax is collected,employees always bear the entire tax burden. 
B) Most economists believe that employers generally bear most of the burden of the social security tax. 
C) When the aggregate labor supply curve is said to be inelastic,the income and substitution effects of a social security tax exactly offset one another. 
D) When the supply curve of labor is perfectly elastic the net wage received by workers falls by the entire amount of the tax. 
A) Regardless of how the tax is collected,employees always bear the entire tax burden. 
B) Most economists believe that employers generally bear most of the burden of the social security tax. 
C) When the aggregate labor supply curve is said to be inelastic,the income and substitution effects of a social security tax exactly offset one another. 
D) When the supply curve of labor is perfectly elastic the net wage received by workers falls by the entire amount of the tax.

Question 18

The National Collegiate Athletic Association [NCAA] has been able to control cheating by:

Accepted Answer

A) reducing the number of athletic scholarships a school caught cheating can grant. 
B) taking away the accreditation of schools caught cheating. 
C) not permitting coaches,who were caught cheating once,to coach any more. 
D) setting an official wage for the athletes that is below the market-clearing wage. 
A) reducing the number of athletic scholarships a school caught cheating can grant. 
B) taking away the accreditation of schools caught cheating. 
C) not permitting coaches,who were caught cheating once,to coach any more. 
D) setting an official wage for the athletes that is below the market-clearing wage.

Question 19

Which of the following categories of workers are directly affected by the minimum wage law?

Accepted Answer

A) Unskilled workers 
B) Learned professionals 
C) Businessmen 
D) Part-time workers 
A) Unskilled workers 
B) Learned professionals 
C) Businessmen 
D) Part-time workers

Question 20

The U.S.Social Security system:

Accepted Answer

A) invests the taxes paid by workers in interest-bearing assets. 
B) requires workers to pay a fixed lump sum tax every year. 
C) encourages people to save more. 
D) transfers funds from current workers to current retirees. 
A) invests the taxes paid by workers in interest-bearing assets. 
B) requires workers to pay a fixed lump sum tax every year. 
C) encourages people to save more. 
D) transfers funds from current workers to current retirees.

Discrimination in hiring practices is influenced by all of the following factors,except:

In determining who bears the burden of the social security tax,it is important to consider:

Which of the following is true of an efficiency wage?

What is the long run effect of a pay-as-you-go Social Security program on the gross domestic product [GDP] of a country?

Which of the following is true for a competitive firm operating in an input market cartel?

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -According to Figure 18-2,the proportion of the per-unit tax paid by employees is:

Which of the following is consistent with the National Collegiate Athletic Association [NCAA] representing a cartel among schools in their "hiring" of student-athletes?

Which of the following facts indicate that the official wage paid by the National Collegiate Athletic Association [NCAA] to the athletes is below the market-clearing level?

The real burden of a social security tax would be:

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -According to Figure 18-2,the proportion of the per-unit tax paid by the employers is:

Which of the following will result when the pay-as-you-go Social Security program is introduced in a country?

Which of the following is a major economic impact of immigration in the U.S.?

The cost of the mandated minimum wage is most likely to be borne by the:

The figure given below shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. -Refer to Figure 18-3.The increase in the income of the capital owners in the country,due to immigration,is represented by the area:

Which of the following is true regarding the incidence of the social security tax?

The National Collegiate Athletic Association [NCAA] has been able to control cheating by:

Which of the following categories of workers are directly affected by the minimum wage law?

The U.S.Social Security system:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

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Exam 18: Using Input Market Analysis

Discrimination in hiring practices is influenced by all of the following factors,except:

In determining who bears the burden of the social security tax,it is important to consider:

Which of the following is true of an efficiency wage?

What is the long run effect of a pay-as-you-go Social Security program on the gross domestic product [GDP] of a country?

Which of the following is true for a competitive firm operating in an input market cartel?

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -According to Figure 18-2,the proportion of the per-unit tax paid by employees is:

Which of the following is consistent with the National Collegiate Athletic Association [NCAA] representing a cartel among schools in their "hiring" of student-athletes?

Which of the following facts indicate that the official wage paid by the National Collegiate Athletic Association [NCAA] to the athletes is below the market-clearing level?

The real burden of a social security tax would be:

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -According to Figure 18-2,the proportion of the per-unit tax paid by the employers is:

Which of the following will result when the pay-as-you-go Social Security program is introduced in a country?

Which of the following is a major economic impact of immigration in the U.S.?

The cost of the mandated minimum wage is most likely to be borne by the:

The figure given below shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. -Refer to Figure 18-3.The increase in the income of the capital owners in the country,due to immigration,is represented by the area:

Which of the following is true regarding the incidence of the social security tax?

The National Collegiate Athletic Association [NCAA] has been able to control cheating by:

Which of the following categories of workers are directly affected by the minimum wage law?

The U.S.Social Security system:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

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