Question 1

The value you give today to money you will receive in the future is called the future payment's

Accepted Answer

A) time-sensitive value. 
B) future value. 
C) present value. 
D) historical value. 
A) time-sensitive value. 
B) future value. 
C) present value. 
D) historical value.

Question 2

In the legal sector,some practice areas have declined in recent years.For example,personal-injury and medical-malpractice cases have been undercut by state laws limiting class-action suits,out-of-state plaintiffs and payouts on damages,and securities class-action litigation has declined in part because of a buoyant stock market.How does this affect the market for lawyers?

Accepted Answer

A) The demand for lawyers shifts to the left. 
B) The supply of lawyers shifts to the left. 
C) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve. 
D) Both the demand and supply curves decrease. 
A) The demand for lawyers shifts to the left. 
B) The supply of lawyers shifts to the left. 
C) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve. 
D) Both the demand and supply curves decrease.

Question 3

Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses.In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.

Accepted Answer

Opticians are trained professionals who

Question 4

If you own a $1000 face value bond with one year remaining to maturity and a five per cent coupon rate,and new bonds are paying 12 per cent,what is the most you can get for your old bond?

Accepted Answer

A) $1120 
B) $1000 
C) $937.50 
D) impossible to determine without additional information 
A) $1120 
B) $1000 
C) $937.50 
D) impossible to determine without additional information

Question 5

A number of economists have estimated the impact of unionisation on workers' wages.Which of the following is one conclusion reached by these studies?

Accepted Answer

A) Union workers earn less than they would if they were not unionised.This is because of the impact of workers' strikes,during which union members do not receive wages. 
B) Holding constant the impact of other factors that affect wages,being in a union has no impact on a worker's wages. 
C) Being in a union increases a worker's wages by about 10 per cent,holding constant other factors that influence wages. 
D) The share of national income received by workers has increased significantly over time;unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000. 
A) Union workers earn less than they would if they were not unionised.This is because of the impact of workers' strikes,during which union members do not receive wages. 
B) Holding constant the impact of other factors that affect wages,being in a union has no impact on a worker's wages. 
C) Being in a union increases a worker's wages by about 10 per cent,holding constant other factors that influence wages. 
D) The share of national income received by workers has increased significantly over time;unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000.

Question 6

In equilibrium,what determines the price of capital and what determines the price of natural resources?

Accepted Answer

In equilibrium,the price of capital is d

Question 7

How much is a bond that pays $20 in coupon payments for 4 years and $1000 at the end of the fourth year worth if the interest rate is 5%?

Accepted Answer

A) $822.70 
B) $893.62 
C) $1070.92 
D) $1080 
A) $822.70 
B) $893.62 
C) $1070.92 
D) $1080

Question 8

What is the marginal productivity theory of income distribution?

Accepted Answer

The marginal productivity theory of inco

Question 9

If the market wage rate increases,a firm's labour demand curve does not shift,but the labour supply curve shifts to the right.

Accepted Answer

A) True 
 B)False

Question 10

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

Accepted Answer

A) closed shop. 
B) guild. 
C) labour union. 
D) monopsony. 
A) closed shop. 
B) guild. 
C) labour union. 
D) monopsony.

Question 11

Figure 12-3  
-Refer to Figure 12-3.Panel D is appropriate when used to represent

Accepted Answer

A) the quantity of labour demanded by an input price taker. 
B) the labour supply curve facing an input price taker. 
C) the quantity of labour supplied by someone working a fixed number of hours. 
D) the highly-skilled labour market supply curve. 
A) the quantity of labour demanded by an input price taker. 
B) the labour supply curve facing an input price taker. 
C) the quantity of labour supplied by someone working a fixed number of hours. 
D) the highly-skilled labour market supply curve.

Question 12

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Accepted Answer

The equilibrium wage will fall

Question 13

In general,the labour supply curve

Accepted Answer

A) slopes downward because firms will hire fewer workers at higher wages. 
B) slopes upward because as the wage rises,the opportunity cost of leisure increases. 
C) is vertical at the equilibrium wage rate. 
D) is perfectly elastic at the equilibrium wage rate. 
A) slopes downward because firms will hire fewer workers at higher wages. 
B) slopes upward because as the wage rises,the opportunity cost of leisure increases. 
C) is vertical at the equilibrium wage rate. 
D) is perfectly elastic at the equilibrium wage rate.

Question 14

Wage differentials between occupations can be explained by all of the following except

Accepted Answer

A) the fact that some occupations require higher levels of human capital than others. 
B) the fact that some occupations are more desirable than others. 
C) the market power of different employers. 
D) the relative differences between demand and supply in various occupations. 
A) the fact that some occupations require higher levels of human capital than others. 
B) the fact that some occupations are more desirable than others. 
C) the market power of different employers. 
D) the relative differences between demand and supply in various occupations.

Question 15

The benefit to the firm from hiring one additional worker is called the

Accepted Answer

A) marginal revenue product of labour. 
B) marginal revenue. 
C) marginal profit. 
D) total revenue. 
A) marginal revenue product of labour. 
B) marginal revenue. 
C) marginal profit. 
D) total revenue.

Question 16

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

Accepted Answer

A) True 
 B)False

Question 17

How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labour market and in a monopsony labour market?

Accepted Answer

In a competitive labour market,a minimum

Question 18

Economic discrimination takes place when an employer

Accepted Answer

A) pays workers the lowest wage possible. 
B) pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. 
C) pays lower wages to workers who are not as productive as other workers. 
D) pays workers compensating wage differentials. 
A) pays workers the lowest wage possible. 
B) pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. 
C) pays lower wages to workers who are not as productive as other workers. 
D) pays workers compensating wage differentials.

Question 19

The demand for labour is a derived demand.Explain what is meant by the term 'derived demand.'

Accepted Answer

A derived demand is the demand

Question 20

Figure 12-4  
-Refer to Figure 12-4.Which of the following is true if the wage rate increases from W1 to W2?

Accepted Answer

A) The income effect is larger than the substitution effect. 
B) The substitution effect is larger than the income effect. 
C) The income effect and the substitution effect are equal. 
D) The supply curve is unit-elastic. 
A) The income effect is larger than the substitution effect. 
B) The substitution effect is larger than the income effect. 
C) The income effect and the substitution effect are equal. 
D) The supply curve is unit-elastic.

The value you give today to money you will receive in the future is called the future payment's

Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses.In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.

If you own a $1000 face value bond with one year remaining to maturity and a five per cent coupon rate,and new bonds are paying 12 per cent,what is the most you can get for your old bond?

A number of economists have estimated the impact of unionisation on workers' wages.Which of the following is one conclusion reached by these studies?

In equilibrium,what determines the price of capital and what determines the price of natural resources?

How much is a bond that pays $20 in coupon payments for 4 years and $1000 at the end of the fourth year worth if the interest rate is 5%?

What is the marginal productivity theory of income distribution?

If the market wage rate increases,a firm's labour demand curve does not shift,but the labour supply curve shifts to the right.

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

Figure 12-3 -Refer to Figure 12-3.Panel D is appropriate when used to represent

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

In general,the labour supply curve

Wage differentials between occupations can be explained by all of the following except

The benefit to the firm from hiring one additional worker is called the

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labour market and in a monopsony labour market?

Economic discrimination takes place when an employer

The demand for labour is a derived demand.Explain what is meant by the term 'derived demand.'

Figure 12-4 -Refer to Figure 12-4.Which of the following is true if the wage rate increases from W₁ to W₂?

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology, Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 12: The Markets for Labour and Other Factors of Production

The value you give today to money you will receive in the future is called the future payment's

Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses.In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.

If you own a $1000 face value bond with one year remaining to maturity and a five per cent coupon rate,and new bonds are paying 12 per cent,what is the most you can get for your old bond?

A number of economists have estimated the impact of unionisation on workers' wages.Which of the following is one conclusion reached by these studies?

In equilibrium,what determines the price of capital and what determines the price of natural resources?

How much is a bond that pays $20 in coupon payments for 4 years and $1000 at the end of the fourth year worth if the interest rate is 5%?

What is the marginal productivity theory of income distribution?

If the market wage rate increases,a firm's labour demand curve does not shift,but the labour supply curve shifts to the right.

An organisation of employees that has the legal right to bargain with employers about wages and working conditions is called a

Figure 12-3 -Refer to Figure 12-3.Panel D is appropriate when used to represent

If the labour supply curve shifts to the right and the labour demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

In general,the labour supply curve

Wage differentials between occupations can be explained by all of the following except

The benefit to the firm from hiring one additional worker is called the

If the demand for labour is unchanged,population growth will increase the supply of labour and increase the equilibrium wage.

How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labour market and in a monopsony labour market?

Economic discrimination takes place when an employer

The demand for labour is a derived demand.Explain what is meant by the term 'derived demand.'

Figure 12-4 -Refer to Figure 12-4.Which of the following is true if the wage rate increases from W1 to W2?

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Economic Efficiency, Government Price Setting and Taxes

Consumer Choice and Behavioural Economics

Technology, Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Figure 12-4 -Refer to Figure 12-4.Which of the following is true if the wage rate increases from W₁ to W₂?