Question 1

Most of the total income made in the U.S.economy is paid as

Accepted Answer

A)  profits to businesses. 
B)  interest to capital lenders. 
C)  rent to building owners. 
D)  wages and benefits to laborers. 
E)  taxes to government. 
A)  profits to businesses. 
B)  interest to capital lenders. 
C)  rent to building owners. 
D)  wages and benefits to laborers. 
E)  taxes to government.

Question 2

Which company is most easily able to outsource its operations and have its good or service produced in another country?

Accepted Answer

A)  Hannah's Hair Salons 
B)  Darling Dentistry 
C)  Queen's Quilts 
D)  Busker Baseball Team 
E)  Penelope's Fresh Pretzels 
A)  Hannah's Hair Salons 
B)  Darling Dentistry 
C)  Queen's Quilts 
D)  Busker Baseball Team 
E)  Penelope's Fresh Pretzels

Question 3

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

Accepted Answer

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

Question 4

Refer to the following figure to answer the following questions:
  
-If the price of the product is $10,then what is the value of the marginal product of labor (VMPL)of the second worker?

Accepted Answer

A)  $40 
B)  $120 
C)  $20 
D)  $10 
E)  $80 
A)  $40 
B)  $120 
C)  $20 
D)  $10 
E)  $80

Question 5

In the short run,wages in the home country will ________ when a company outsources its operations because labor demand in the home country has ________.

Accepted Answer

A)  rise; risen 
B)  stay the same; fallen 
C)  double; risen 
D)  fall by a third; risen 
E)  fall; fallen 
A)  rise; risen 
B)  stay the same; fallen 
C)  double; risen 
D)  fall by a third; risen 
E)  fall; fallen

Question 6

The value of the marginal product is

Accepted Answer

A)  total output divided by total inputs. 
B)  the marginal product of an input times the price of the output. 
C)  the change in total output divided by the change of an input. 
D)  total revenue minus total cost. 
E)  marginal revenue minus marginal cost. 
A)  total output divided by total inputs. 
B)  the marginal product of an input times the price of the output. 
C)  the change in total output divided by the change of an input. 
D)  total revenue minus total cost. 
E)  marginal revenue minus marginal cost.

Question 7

The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions:
  
-If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?

Accepted Answer

A)  $2,200 
B)  $2,600 
C)  $4,600 
D)  $5,000 
E)  $7,500 
A)  $2,200 
B)  $2,600 
C)  $4,600 
D)  $5,000 
E)  $7,500

Question 8

Refer to the following graphs to answer the following questions:
A.
   B.
   C.
   D.
   E.
  
-Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
E)  Graph E

Question 9

The backward-bending labor supply curve occurs because workers value leisure

Accepted Answer

A)  and income differently as wages change. 
B)  consistently more than they do income at all wages. 
C)  consistently less than they do income at all wages. 
D)  and income by the same amount at all wages. 
E)  and income by fluctuating,unpredictable amounts at any wage. 
A)  and income differently as wages change. 
B)  consistently more than they do income at all wages. 
C)  consistently less than they do income at all wages. 
D)  and income by the same amount at all wages. 
E)  and income by fluctuating,unpredictable amounts at any wage.

Question 10

Of the total income earned in the U.S.economy,about

Accepted Answer

A)  67 percent is earned by landowners,while 33 percent is earned by capitalists. 
B)  50 percent is earned by laborers,25 percent by landowners,and 25 percent by capital lenders. 
C)  40 percent is earned by government,50 percent by landowners,and 10 percent by laborers. 
D)  67 percent is earned by laborers,and 33 percent is earned by other factors. 
E)  51 percent is earned by laborers,and 49 percent is earned by land and capital owners. 
A)  67 percent is earned by landowners,while 33 percent is earned by capitalists. 
B)  50 percent is earned by laborers,25 percent by landowners,and 25 percent by capital lenders. 
C)  40 percent is earned by government,50 percent by landowners,and 10 percent by laborers. 
D)  67 percent is earned by laborers,and 33 percent is earned by other factors. 
E)  51 percent is earned by laborers,and 49 percent is earned by land and capital owners.

Question 11

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
  
-If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.

Accepted Answer

A)  decrease to zero 
B)  increase to $35 
C)  fall 
D)  increase 
E)  remain unchanged 
A)  decrease to zero 
B)  increase to $35 
C)  fall 
D)  increase 
E)  remain unchanged

Question 12

Tamar's sister complains that Tamar gets paid considerably more as a caterer than she is paid as a chef,even though the careers are similar.What might explain this situation?

Accepted Answer

A)  People rarely hire caterers for their events and so are willing to pay a premium for the service. 
B)  There are many chefs in town,but few caterers. 
C)  The training required to be a chef is so advanced that people cannot afford her services. 
D)  There are many substitutes for a chef. 
E)  Tamar's catering business can go to a person's residence,and her sister's position does not allow such mobility. 
A)  People rarely hire caterers for their events and so are willing to pay a premium for the service. 
B)  There are many chefs in town,but few caterers. 
C)  The training required to be a chef is so advanced that people cannot afford her services. 
D)  There are many substitutes for a chef. 
E)  Tamar's catering business can go to a person's residence,and her sister's position does not allow such mobility.

Question 13

Which of the following is an example of a factor of production?

Accepted Answer

A)  Medicare support payments 
B)  workers hired to repair worn-out furniture 
C)  interest on loans to purchase more capital 
D)  rent on agricultural land 
E)  profits paid to Apple stores 
A)  Medicare support payments 
B)  workers hired to repair worn-out furniture 
C)  interest on loans to purchase more capital 
D)  rent on agricultural land 
E)  profits paid to Apple stores

Question 14

The rental price of land is the

Accepted Answer

A)  cost of leasing a piece of land for a determined time period. 
B)  amount of money required to buy a piece of land. 
C)  entire bill associated with maintaining land used in production. 
D)  amount of money a firm could have made by using the land for another purpose. 
E)  amount of money a firm pays to build a plant on a piece of land. 
A)  cost of leasing a piece of land for a determined time period. 
B)  amount of money required to buy a piece of land. 
C)  entire bill associated with maintaining land used in production. 
D)  amount of money a firm could have made by using the land for another purpose. 
E)  amount of money a firm pays to build a plant on a piece of land.

Question 15

The marginal product of labor is the

Accepted Answer

A)  additional amount of consumer goods that can be bought from an additional hour's worth of work. 
B)  additional amount of inputs a firm demands based on a change in consumer demand for the output. 
C)  additional amount of output that can be produced from hiring one more worker. 
D)  decreasing amount of output that can be produced from hiring one more worker. 
E)  value of production from the last worker hired. 
A)  additional amount of consumer goods that can be bought from an additional hour's worth of work. 
B)  additional amount of inputs a firm demands based on a change in consumer demand for the output. 
C)  additional amount of output that can be produced from hiring one more worker. 
D)  decreasing amount of output that can be produced from hiring one more worker. 
E)  value of production from the last worker hired.

Question 16

Use the following table to answer the following questions:
  
-What is the value that belongs in cell F3?

Accepted Answer

A)  $500 
B)  $ - 100 
C)  $750 
D)  $600 
E)  $ - 300 
A)  $500 
B)  $ - 100 
C)  $750 
D)  $600 
E)  $ - 300

Question 17

The markets for factors of production differ from markets for products in an important aspect because

Accepted Answer

A)  markets for factors are rarely in equilibrium,whereas markets for products are usually in equilibrium. 
B)  demand for factors of production is a derived demand. 
C)  the shape of the product's demand curve will be more elastic than the shape of the factor's demand curve. 
D)  supply of a factor is dependent on the supply of a product. 
E)  the shape of the product's supply curve will be more elastic than the shape of the factor's supply curve. 
A)  markets for factors are rarely in equilibrium,whereas markets for products are usually in equilibrium. 
B)  demand for factors of production is a derived demand. 
C)  the shape of the product's demand curve will be more elastic than the shape of the factor's demand curve. 
D)  supply of a factor is dependent on the supply of a product. 
E)  the shape of the product's supply curve will be more elastic than the shape of the factor's supply curve.

Question 18

Companies outsource their operations because

Accepted Answer

A)  the weather is nicer in other countries. 
B)  employees in other countries take less sick leave. 
C)  governments in other countries allow them to operate. 
D)  labor costs are lower. 
E)  no one wants to do the work domestically. 
A)  the weather is nicer in other countries. 
B)  employees in other countries take less sick leave. 
C)  governments in other countries allow them to operate. 
D)  labor costs are lower. 
E)  no one wants to do the work domestically.

Question 19

Use the following table to answer the following questions:
  
-If the workers are paid $10 per hour,the price of the product is $3,and the fixed cost of the business is $10,then how many workers should the business employ?

Accepted Answer

A)  three 
B)  four 
C)  five 
D)  six 
E)  seven 
A)  three 
B)  four 
C)  five 
D)  six 
E)  seven

Question 20

As Apple's iPads become more popular,we can expect the wages of Apple workers with specific skills pertaining to the production of iPads to ________ relative to PC workers.

Accepted Answer

A)  increase 
B)  stagnate 
C)  decrease slowly 
D)  fall to the minimum wage 
E)  decrease 
A)  increase 
B)  stagnate 
C)  decrease slowly 
D)  fall to the minimum wage 
E)  decrease

Most of the total income made in the U.S.economy is paid as

Which company is most easily able to outsource its operations and have its good or service produced in another country?

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

Refer to the following figure to answer the following questions: -If the price of the product is $10,then what is the value of the marginal product of labor (VMPL)of the second worker?

In the short run,wages in the home country will when a company outsources its operations because labor demand in the home country has .

The value of the marginal product is

The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions: -If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?

Refer to the following graphs to answer the following questions: A. B. C. D. E. -Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

The backward-bending labor supply curve occurs because workers value leisure

Of the total income earned in the U.S.economy,about

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.

Tamar's sister complains that Tamar gets paid considerably more as a caterer than she is paid as a chef,even though the careers are similar.What might explain this situation?

Which of the following is an example of a factor of production?

The rental price of land is the

The marginal product of labor is the

Use the following table to answer the following questions: -What is the value that belongs in cell F3?

The markets for factors of production differ from markets for products in an important aspect because

Companies outsource their operations because

Use the following table to answer the following questions: -If the workers are paid $10 per hour,the price of the product is $3,and the fixed cost of the business is $10,then how many workers should the business employ?

As Apple's iPads become more popular,we can expect the wages of Apple workers with specific skills pertaining to the production of iPads to ________ relative to PC workers.

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

Most of the total income made in the U.S.economy is paid as

Which company is most easily able to outsource its operations and have its good or service produced in another country?

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

Refer to the following figure to answer the following questions: -If the price of the product is $10,then what is the value of the marginal product of labor (VMPL)of the second worker?

In the short run,wages in the home country will ________ when a company outsources its operations because labor demand in the home country has ________.

The value of the marginal product is

The worker productivity of Cutie Cupcakes is presented in the following table.Use the table to answer the following questions: -If the wage is $8 and the price of a cupcake is $4,what are Cutie Cupcakes' profits at the optimal amount of labor?

Refer to the following graphs to answer the following questions: A. B. C. D. E. -Choose the graph that represents the following situation: Out of fear of losing their jobs in a depressed economic climate,workers increase their rate of production.

The backward-bending labor supply curve occurs because workers value leisure

Of the total income earned in the U.S.economy,about

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.

Tamar's sister complains that Tamar gets paid considerably more as a caterer than she is paid as a chef,even though the careers are similar.What might explain this situation?

Which of the following is an example of a factor of production?

The rental price of land is the

The marginal product of labor is the

Use the following table to answer the following questions: -What is the value that belongs in cell F3?

The markets for factors of production differ from markets for products in an important aspect because

Companies outsource their operations because

Use the following table to answer the following questions: -If the workers are paid $10 per hour,the price of the product is $3,and the fixed cost of the business is $10,then how many workers should the business employ?

As Apple's iPads become more popular,we can expect the wages of Apple workers with specific skills pertaining to the production of iPads to ________ relative to PC workers.

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

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

In the short run,wages in the home country will when a company outsources its operations because labor demand in the home country has .