Question 1

About what percent of the U.S.income is earned in wages and benefits?

Accepted Answer

A)  40 
B)  72 
C)  67 
D)  33 
E)  60 
A)  40 
B)  72 
C)  67 
D)  33 
E)  60

Question 2

The following graph represents Zendar's labor market.Use this graph to answer the following questions:
  
-At a wage of ________,________ workers are demanded.

Accepted Answer

A)  $5; 10 
B)  $10; 35 
C)  $15; 40 
D)  $40; 10 
E)  $45; 45 
A)  $5; 10 
B)  $10; 35 
C)  $15; 40 
D)  $40; 10 
E)  $45; 45

Question 3

Derived demand best describes the demand for which of the following options?

Accepted Answer

A)  cupcakes 
B)  canned soda 
C)  computer chips 
D)  cat food 
E)  cars 
A)  cupcakes 
B)  canned soda 
C)  computer chips 
D)  cat food 
E)  cars

Question 4

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
  
-There will be a surplus of ________ workers at a wage of ________.

Accepted Answer

A)  75; $10 
B)  100; $20 
C)  135; $40 
D)  40; $40 
E)  50; $30 
A)  75; $10 
B)  100; $20 
C)  135; $40 
D)  40; $40 
E)  50; $30

Question 5

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Accepted Answer

Students should refer to the supply and

Question 6

The fundamental decision faced by workers is called

Accepted Answer

A)  labor demand. 
B)  labor supply. 
C)  income effect. 
D)  the labor-leisure trade-off. 
E)  the substitution effect. 
A)  labor demand. 
B)  labor supply. 
C)  income effect. 
D)  the labor-leisure trade-off. 
E)  the substitution effect.

Question 7

If you know that the substitution effect dominates the income effect when Jasper's wage rises,you can tell that his labor supply curve is

Accepted Answer

A)  upward-sloping. 
B)  downward-sloping. 
C)  vertical. 
D)  upward-sloping at an increasing rate. 
E)  downward-sloping at an increasing rate. 
A)  upward-sloping. 
B)  downward-sloping. 
C)  vertical. 
D)  upward-sloping at an increasing rate. 
E)  downward-sloping at an increasing rate.

Question 8

Use the following table to answer the following questions:
  
-What is the marginal product of the fourth worker?

Accepted Answer

A)  7.5 units 
B)  8.33 units 
C)  25 units 
D)  5 units 
E)  6.25 units 
A)  7.5 units 
B)  8.33 units 
C)  25 units 
D)  5 units 
E)  6.25 units

Question 9

Refer to the following table to answer the following questions: 
 
-If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Accepted Answer

A)  one 
B)  two 
C)  three 
D)  four 
E)  five 
A)  one 
B)  two 
C)  three 
D)  four 
E)  five

Question 10

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Accepted Answer

In addition to labor,many other inputs t

Question 11

Factors of production are another term for the

Accepted Answer

A)  multiplier (factor)by which production can be increased by using new technology. 
B)  certain technical aspects (factors such as temperature and humidity)by which more output is produced. 
C)  accounting techniques (factors)used to report increased production. 
D)  aspects (factors)by which production determines derived demand. 
E)  inputs (factors)to the production process. 
A)  multiplier (factor)by which production can be increased by using new technology. 
B)  certain technical aspects (factors such as temperature and humidity)by which more output is produced. 
C)  accounting techniques (factors)used to report increased production. 
D)  aspects (factors)by which production determines derived demand. 
E)  inputs (factors)to the production process.

Question 12

Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor ________ and capital ________.

Accepted Answer

A)  increases; falls 
B)  falls; falls 
C)  increases; increases 
D)  stays the same; falls 
E)  falls; increases 
A)  increases; falls 
B)  falls; falls 
C)  increases; increases 
D)  stays the same; falls 
E)  falls; increases

Question 13

Assume that the labor market for coffee roasters is in equilibrium.
a.Graph this labor market. 
b.A new ad campaign by the coffee industry,"A coffee a day keeps the sleepies away," is successful and consumers prefer more coffee.Graph the effect of this on equilibrium wages W1 and quantity of labor L1 of workers.Label the new equilibrium W2 and L2.
c.At the old W1,what situation exists? How does the labor market adjust to the new W2?

Accepted Answer

a.
 @#IMG-DLM& 
b.This increase in consumer demand

Question 14

Graph the following labor supply curves:
a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates.
b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

Accepted Answer

a.For wages below $200,an increase in th

Question 15

Refer to the following figure to answer the following questions:
  
-If the price of the product is $20,then what is the value of the marginal product of labor (VMPL)of the fourth worker?

Accepted Answer

A)  $40 
B)  $20 
C)  $300 
D)  $80 
E)  $420 
A)  $40 
B)  $20 
C)  $300 
D)  $80 
E)  $420

Question 16

The following table contains the relationship between a number of trainers working at the new gym (Crossfit by Shawna)and how many clients they can train.These clients represent the output of trainers.Clients pay $40 per session.
a.Find the marginal product of labor (MPL)and the value of the marginal product of labor (VMPL)for each additional trainer hired,and record these numbers in columns on the table.
   
b.Crossfit by Shawna's premier trainers earn $200 an hour.How many trainers will the gym hire?

Accepted Answer

a.
b.At six trainers,the wage

Question 17

The minimum wage is increased to $15.This higher wage might ________ labor force participation,shifting the labor supply curve to the ________.

Accepted Answer

A)  decrease; right 
B)  increase; left 
C)  decrease; left 
D)  increase; right 
E)  not change; right 
A)  decrease; right 
B)  increase; left 
C)  decrease; left 
D)  increase; right 
E)  not change; right

Question 18

If Marguerite rents her land for $250/month and her next-best use of the land would earn her $100/month,her economic rent is ________.

Accepted Answer

A)  $250 
B)  $150 
C)  $100 
D)  $75 
E)  $25 
A)  $250 
B)  $150 
C)  $100 
D)  $75 
E)  $25

Question 19

Customer service jobs are easily outsourced.Graph the following for the market for customer service,and explain what happens to wages and the quantity of labor.
a.What are the short-run effects of this outsourcing on the home country?
b.What are the effects in the foreign country?
c.Who wins and loses in these moves?

Accepted Answer

a.Firms reduce demand for workers in the

Question 20

There will be a ________ of workers when the wage is ________ the equilibrium wage.

Accepted Answer

A)  surplus; at 
B)  surplus; below 
C)  surplus; above 
D)  shortage; above 
E)  shortage; at 
A)  surplus; at 
B)  surplus; below 
C)  surplus; above 
D)  shortage; above 
E)  shortage; at

About what percent of the U.S.income is earned in wages and benefits?

The following graph represents Zendar's labor market.Use this graph to answer the following questions: -At a wage of , workers are demanded.

Derived demand best describes the demand for which of the following options?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of workers at a wage of .

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

The fundamental decision faced by workers is called

If you know that the substitution effect dominates the income effect when Jasper's wage rises,you can tell that his labor supply curve is

Use the following table to answer the following questions: -What is the marginal product of the fourth worker?

Refer to the following table to answer the following questions: -If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Factors of production are another term for the

Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor and capital .

Graph the following labor supply curves: a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates. b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

Refer to the following figure to answer the following questions: -If the price of the product is $20,then what is the value of the marginal product of labor (VMPL)of the fourth worker?

The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

If Marguerite rents her land for $250/month and her next-best use of the land would earn her $100/month,her economic rent is ________.

There will be a of workers when the wage is the equilibrium wage.

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

Exam 14: The Demand and Supply of Resources

About what percent of the U.S.income is earned in wages and benefits?

The following graph represents Zendar's labor market.Use this graph to answer the following questions: -At a wage of ________,________ workers are demanded.

Derived demand best describes the demand for which of the following options?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of ________ workers at a wage of ________.

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

The fundamental decision faced by workers is called

If you know that the substitution effect dominates the income effect when Jasper's wage rises,you can tell that his labor supply curve is

Use the following table to answer the following questions: -What is the marginal product of the fourth worker?

Refer to the following table to answer the following questions: -If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Factors of production are another term for the

Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor ________ and capital ________.

Graph the following labor supply curves: a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates. b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

Refer to the following figure to answer the following questions: -If the price of the product is $20,then what is the value of the marginal product of labor (VMPL)of the fourth worker?

The minimum wage is increased to $15.This higher wage might ________ labor force participation,shifting the labor supply curve to the ________.

If Marguerite rents her land for $250/month and her next-best use of the land would earn her $100/month,her economic rent is ________.

There will be a ________ of workers when the wage is ________ the equilibrium wage.

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

Income,inequality,and Poverty

Consumer Choice

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

The following graph represents Zendar's labor market.Use this graph to answer the following questions: -At a wage of , workers are demanded.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of workers at a wage of .

Assume that the Welter Company is renting capital and hiring labor such that the bang per buck from each resource is the same.If wages of labor increase,its use of labor and capital .

The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

There will be a of workers when the wage is the equilibrium wage.