Question 1

Which of the following is an argument in favor of the National Collegiate Athletic Association [NCAA] cartel?

Accepted Answer

A) Those harmed by the NCAA policies are often more well off than those who benefit. 
B) Student athletes are paid much more than their marginal value product. 
C) Paying college athletes would destroy their amateur status and turn college athletics into a business. 
D) NCAA policies result in a perfectly competitive market for student-athletes. 
A) Those harmed by the NCAA policies are often more well off than those who benefit. 
B) Student athletes are paid much more than their marginal value product. 
C) Paying college athletes would destroy their amateur status and turn college athletics into a business. 
D) NCAA policies result in a perfectly competitive market for student-athletes.

Question 2

What determines who bears the burden of the social security tax?

Accepted Answer

There are two important points here.Firs

Question 3

Consider an industry that was initially employing both male and female workers.If some of the firms in this industry decide to discriminate against the male workers,what would be the most immediate impact on the labor market?

Accepted Answer

A) The wage paid to the male workers will decline. 
B) The demand curve for labor will shift upward. 
C) The supply curve of labor will shift upward. 
D) The wage paid to the female workers will rise. 
A) The wage paid to the male workers will decline. 
B) The demand curve for labor will shift upward. 
C) The supply curve of labor will shift upward. 
D) The wage paid to the female workers will rise.

Question 4

According to the Fair Labor Standards Act,which of the following workers are not covered under the minimum wage law?

Accepted Answer

A) Farm workers 
B) Retailers 
C) Skilled professionals 
D) Engineers 
A) Farm workers 
B) Retailers 
C) Skilled professionals 
D) Engineers

Question 5

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.  
-Refer to Figure 18-2.The total revenue collected by the government from the per-unit tax is represented by the area:

Accepted Answer

A) BFL1O. 
B) CEL2O. 
C) ABFG. 
D) ACEG. 
A) BFL1O. 
B) CEL2O. 
C) ABFG. 
D) ACEG.

Question 6

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.The increase in the number of workers looking for work in this market due to the imposition of a $5.15 minimum wage is _____.

Accepted Answer

A) L1L3 
B) L2L3 
C) OL1 
D) L2L1 
A) L1L3 
B) L2L3 
C) OL1 
D) L2L1

Question 7

Which of the following is not a consequence of the minimum wage law?

Accepted Answer

A) Reduced employment among low-skilled workers 
B) Increased numbers of workers seeking jobs at the minimum wage 
C) Higher incomes for some low-income workers 
D) A large redistribution of income favoring low-income workers 
A) Reduced employment among low-skilled workers 
B) Increased numbers of workers seeking jobs at the minimum wage 
C) Higher incomes for some low-income workers 
D) A large redistribution of income favoring low-income workers

Question 8

In a labor market characterized by a downward-sloping demand curve and an upward-rising supply curve,the disemployment effect of a minimum wage does not equal the total unemployment caused by the minimum wage.Which of the following can explain this difference?

Accepted Answer

A) The demand for unskilled labor increases with an increase in the wage rate 
B) At a higher wage,more people may enter the job market 
C) The demand for skilled labor increases with an increase in the wage rate 
D) At a higher wage,the supply of labor becomes inelastic 
A) The demand for unskilled labor increases with an increase in the wage rate 
B) At a higher wage,more people may enter the job market 
C) The demand for skilled labor increases with an increase in the wage rate 
D) At a higher wage,the supply of labor becomes inelastic

Question 9

Consider a labor market where the demand for labor is downward-sloping but the supply of labor is perfectly inelastic.Which of the following will hold true in this market when a minimum wage is imposed by the government?

Accepted Answer

A) The disemployment effect will surpass the total unemployment caused by the minimum wage. 
B) The total unemployment will surpass the disemployment effect caused by the minimum wage. 
C) The minimum wage will not decrease the total labor employment. 
D) The disemployment effect will be equal to the total unemployment caused by the minimum wage. 
A) The disemployment effect will surpass the total unemployment caused by the minimum wage. 
B) The total unemployment will surpass the disemployment effect caused by the minimum wage. 
C) The minimum wage will not decrease the total labor employment. 
D) The disemployment effect will be equal to the total unemployment caused by the minimum wage.

Question 10

The aggregate supply curve of hours of work used to analyze a payroll tax is generally:

Accepted Answer

A) elastic. 
B) perfectly elastic. 
C) inelastic. 
D) unit elastic. 
A) elastic. 
B) perfectly elastic. 
C) inelastic. 
D) unit elastic.

Question 11

Which of the following is not likely to contribute to wage disparity between men and women?

Accepted Answer

A) Differences in employment experience 
B) Primary care responsibilities for family 
C) An increase in technology related employment 
D) Differences in the average number of hours worked per week 
A) Differences in employment experience 
B) Primary care responsibilities for family 
C) An increase in technology related employment 
D) Differences in the average number of hours worked per week

Question 12

Which of the following is a true impact of a Social Security program on the labor market?

Accepted Answer

A) It shifts the demand curve for labor to the left. 
B) It shifts the demand curve for labor outward. 
C) It increases the before-tax wage rate. 
D) It increases the after-tax wage rate. 
A) It shifts the demand curve for labor to the left. 
B) It shifts the demand curve for labor outward. 
C) It increases the before-tax wage rate. 
D) It increases the after-tax wage rate.

Question 13

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.Post immigration the earnings of the native laborers in the country declines by the area:

Accepted Answer

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

Question 14

A minimum wage mandated by the government will result in an increase in:

Accepted Answer

A) the supply of workers to the uncovered sector. 
B) the wage rate in the uncovered sector. 
C) employment opportunities in the covered sector. 
D) the demand for workers in the covered sector. 
A) the supply of workers to the uncovered sector. 
B) the wage rate in the uncovered sector. 
C) employment opportunities in the covered sector. 
D) the demand for workers in the covered sector.

Question 15

Assume that initially employers do not discriminate against women.If one third of all employers,accounting for one-third of all employment,begin to discriminate by just hiring men,then:

Accepted Answer

A) all women will begin to earn lower wage rates. 
B) wages for men will rise while that of women will remain unchanged. 
C) employment patterns for men and women will change,but wage rates will not change. 
D) wages for women will rise while that of men will remain unchanged. 
A) all women will begin to earn lower wage rates. 
B) wages for men will rise while that of women will remain unchanged. 
C) employment patterns for men and women will change,but wage rates will not change. 
D) wages for women will rise while that of men will remain unchanged.

Question 16

Which of the following is most likely to occur after an increase in the minimum wage?

Accepted Answer

A) Low-skilled minority workers will face less discrimination in seeking employment. 
B) The demand for skilled workers will fall. 
C) Wages will rise in the sectors of the economy not covered by the law. 
D) Employers will reduce the fringe benefits for workers who are covered by the law. 
A) Low-skilled minority workers will face less discrimination in seeking employment. 
B) The demand for skilled workers will fall. 
C) Wages will rise in the sectors of the economy not covered by the law. 
D) Employers will reduce the fringe benefits for workers who are covered by the law.

Question 17

The federal minimum wage is:

Accepted Answer

A) not likely an efficiency wage because it does not attract high quality workers. 
B) likely an efficiency wage because it prevents firms from hiring unskilled workers and lowers it total cost of production. 
C) likely an efficiency wage because it lowers the costs of searching for new workers. 
D) not likely an efficiency wage because firms would attempt to earn higher profits without any government intervention. 
A) not likely an efficiency wage because it does not attract high quality workers. 
B) likely an efficiency wage because it prevents firms from hiring unskilled workers and lowers it total cost of production. 
C) likely an efficiency wage because it lowers the costs of searching for new workers. 
D) not likely an efficiency wage because firms would attempt to earn higher profits without any government intervention.

Question 18

Suppose the market wage of nurses is raised from $14 an hour to $18 an hour because of a comparable-worth program,which aims to equalize the wages earned by men and women for similar jobs.Which of the following would result from this policy?

Accepted Answer

A) There would be a surplus of nurses only if the demand for nurses is inelastic. 
B) There would be a shortage of nurses. 
C) There would be a surplus of nurses. 
D) There would be a shortage of nurses only if the demand for nurses is inelastic. 
A) There would be a surplus of nurses only if the demand for nurses is inelastic. 
B) There would be a shortage of nurses. 
C) There would be a surplus of nurses. 
D) There would be a shortage of nurses only if the demand for nurses is inelastic.

Question 19

Suppose the current wage of Type A workers is $5 per labor hour,while that of Type B workers is $7 per labor hour.If the government sets the minimum wage in the labor market at $8 per labor hour,which of these two groups would experience a higher increase in the wage rate and by what percentage?

Accepted Answer

A) Type B workers;the wage rate would increase by 10 percent 
B) Type A workers;the wage rate would increase by 10 percent 
C) Type A workers;the wage rate would increase by 60 percent 
D) Type B workers;the wage rate would increase by 60 percent 
A) Type B workers;the wage rate would increase by 10 percent 
B) Type A workers;the wage rate would increase by 10 percent 
C) Type A workers;the wage rate would increase by 60 percent 
D) Type B workers;the wage rate would increase by 60 percent

Question 20

Mention some of the factors which hinder input buyer's cartel.

Accepted Answer

Cartels among input buyers that restrict

Which of the following is an argument in favor of the National Collegiate Athletic Association [NCAA] cartel?

What determines who bears the burden of the social security tax?

Consider an industry that was initially employing both male and female workers.If some of the firms in this industry decide to discriminate against the male workers,what would be the most immediate impact on the labor market?

According to the Fair Labor Standards Act,which of the following workers are not covered under the minimum wage law?

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. -Refer to Figure 18-2.The total revenue collected by the government from the per-unit tax is represented by the area:

Which of the following is not a consequence of the minimum wage law?

In a labor market characterized by a downward-sloping demand curve and an upward-rising supply curve,the disemployment effect of a minimum wage does not equal the total unemployment caused by the minimum wage.Which of the following can explain this difference?

Consider a labor market where the demand for labor is downward-sloping but the supply of labor is perfectly inelastic.Which of the following will hold true in this market when a minimum wage is imposed by the government?

The aggregate supply curve of hours of work used to analyze a payroll tax is generally:

Which of the following is not likely to contribute to wage disparity between men and women?

Which of the following is a true impact of a Social Security program on the labor market?

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.Post immigration the earnings of the native laborers in the country declines by the area:

A minimum wage mandated by the government will result in an increase in:

Assume that initially employers do not discriminate against women.If one third of all employers,accounting for one-third of all employment,begin to discriminate by just hiring men,then:

Which of the following is most likely to occur after an increase in the minimum wage?

The federal minimum wage is:

Suppose the market wage of nurses is raised from $14 an hour to $18 an hour because of a comparable-worth program,which aims to equalize the wages earned by men and women for similar jobs.Which of the following would result from this policy?

Suppose the current wage of Type A workers is $5 per labor hour,while that of Type B workers is $7 per labor hour.If the government sets the minimum wage in the labor market at $8 per labor hour,which of these two groups would experience a higher increase in the wage rate and by what percentage?

Mention some of the factors which hinder input buyer's cartel.

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

Filters

Exam 18: Using Input Market Analysis

Which of the following is an argument in favor of the National Collegiate Athletic Association [NCAA] cartel?

What determines who bears the burden of the social security tax?

Consider an industry that was initially employing both male and female workers.If some of the firms in this industry decide to discriminate against the male workers,what would be the most immediate impact on the labor market?

According to the Fair Labor Standards Act,which of the following workers are not covered under the minimum wage law?

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. -Refer to Figure 18-2.The total revenue collected by the government from the per-unit tax is represented by the area:

Which of the following is not a consequence of the minimum wage law?

In a labor market characterized by a downward-sloping demand curve and an upward-rising supply curve,the disemployment effect of a minimum wage does not equal the total unemployment caused by the minimum wage.Which of the following can explain this difference?

Consider a labor market where the demand for labor is downward-sloping but the supply of labor is perfectly inelastic.Which of the following will hold true in this market when a minimum wage is imposed by the government?

The aggregate supply curve of hours of work used to analyze a payroll tax is generally:

Which of the following is not likely to contribute to wage disparity between men and women?

Which of the following is a true impact of a Social Security program on the labor market?

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.Post immigration the earnings of the native laborers in the country declines by the area:

A minimum wage mandated by the government will result in an increase in:

Assume that initially employers do not discriminate against women.If one third of all employers,accounting for one-third of all employment,begin to discriminate by just hiring men,then:

Which of the following is most likely to occur after an increase in the minimum wage?

The federal minimum wage is:

Suppose the market wage of nurses is raised from $14 an hour to $18 an hour because of a comparable-worth program,which aims to equalize the wages earned by men and women for similar jobs.Which of the following would result from this policy?

Suppose the current wage of Type A workers is $5 per labor hour,while that of Type B workers is $7 per labor hour.If the government sets the minimum wage in the labor market at $8 per labor hour,which of these two groups would experience a higher increase in the wage rate and by what percentage?

Mention some of the factors which hinder input buyer's cartel.

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

Filters