Question 1

A nurse willing to work the midnight to 8 A.M.shift may make more than one who works from 8 A.M.to 4 P.M.because of:

Accepted Answer

A)  discrimination. 
B)  market power. 
C)  compensating differentials. 
D)  efficiency wages. 
A)  discrimination. 
B)  market power. 
C)  compensating differentials. 
D)  efficiency wages.

Question 2

Use the following to answer questions : $\text {Table: Value of the Marginal}$
 $\text {Product of Labour at Demand}$

$\begin{array} { cc}
\hline \text {Quantity of Labour}&
\text {Total Product}\ 
\hline 0 & 0 \ 1 & 20 \ 2 & 50 \ 3 & 90 \ 4 & 120 \ 5 & 140 \ 6 & 150 \ 7 & 150 \ 8 & 140 \
\hline\end{array}$
-(Table: Value of the Marginal Product of Labour and Demand)Use Table: Value of the Marginal Product of Labour and Demand.In the table,the total product of labour is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.If the price of a power cord is $2,the value of the marginal product for the fifth worker is:

Accepted Answer

A)  $0. 
B)  $20. 
C)  $40. 
D)  $60. 
A)  $0. 
B)  $20. 
C)  $40. 
D)  $60.

Question 3

In Canada,the median earnings of immigrant men are greater than that of immigrant women.

Accepted Answer

A) True 
 B)False

Question 4

A wage _____ reduces the quantity of labour supplied through the _____ effect.

Accepted Answer

A)  decrease;income 
B)  increase;substitution 
C)  increase;income 
D)  decrease;complement 
A)  decrease;income 
B)  increase;substitution 
C)  increase;income 
D)  decrease;complement

Question 5

In the labour market,households demand labour and firms supply goods and services.

Accepted Answer

A) True 
 B)False

Question 6

Which factor is NOT associated with production at a university?

Accepted Answer

A)  the faculty 
B)  classroom buildings 
C)  electricity 
D)  the computer labs 
A)  the faculty 
B)  classroom buildings 
C)  electricity 
D)  the computer labs

Question 7

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that during the holiday season,the price of poster-size copies increases to $12.What happens?

Accepted Answer

A)  The demand for labour increases. 
B)  The demand for labour decreases. 
C)  The quantity demanded of labour increases,but the demand for labour curve does not shift. 
D)  The quantity demanded of labour decreases,but the demand for labour curve does not shift. 
A)  The demand for labour increases. 
B)  The demand for labour decreases. 
C)  The quantity demanded of labour increases,but the demand for labour curve does not shift. 
D)  The quantity demanded of labour decreases,but the demand for labour curve does not shift.

Question 8

The demand for a factor of production is a(n)_____ demand.

Accepted Answer

A)  derived 
B)  implicit 
C)  direct 
D)  distributional 
A)  derived 
B)  implicit 
C)  direct 
D)  distributional

Question 9

Use the following to answer questions :
Figure: The Demand for Bricklayers  
-(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage for bricklayers falls from $110 to $100,the _____ bricklayers will _____.

Accepted Answer

A)  demand for;rise 
B)  quantity demanded of;rise 
C)  demand for;fall 
D)  quantity demanded of;fall 
A)  demand for;rise 
B)  quantity demanded of;rise 
C)  demand for;fall 
D)  quantity demanded of;fall

Question 10

According to the efficiency wage model,efficiency wages do NOT:

Accepted Answer

A)  reduce unemployment. 
B)  represent a response to a type of market failure. 
C)  get set above the equilibrium wage. 
D)  reduce worker turnover. 
A)  reduce unemployment. 
B)  represent a response to a type of market failure. 
C)  get set above the equilibrium wage. 
D)  reduce worker turnover.

Question 11

If a firm hires labour and with its current employees W = VMPL,then profit:

Accepted Answer

A)  is maximized. 
B)  can be increased by hiring less labour. 
C)  can be increased by hiring more labour. 
D)  can be increased by increasing the wage rate. 
A)  is maximized. 
B)  can be increased by hiring less labour. 
C)  can be increased by hiring more labour. 
D)  can be increased by increasing the wage rate.

Question 12

Above-equilibrium wages paid by some employers as an incentive for better performance are called efficiency wages.

Accepted Answer

A) True 
 B)False

Question 13

Lakisha's labour supply curve is downward sloping for wage rates greater than $40 per hour and upward sloping for wage rates less than $40 per hour.If leisure is a normal good for Lakisha and if the wage is _____,the substitution effect of a wage increase is _____ than the income effect.

Accepted Answer

A)  greater than $40;greater 
B)  equal to $18;less 
C)  greater than $40;less 
D)  greater than $20;less 
A)  greater than $40;greater 
B)  equal to $18;less 
C)  greater than $40;less 
D)  greater than $20;less

Question 14

Use the following to answer questions :
Figure: The Value of the Marginal Product Curve  
-(Figure: The Value of the Marginal Product Curve)Use Figure: The Value of the Marginal Product Curve.In the figure,if a technological advance makes labour more productive and everything else stays the same,then the profit-maximizing quantity of labour:

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will stay the same. 
D)  cannot be determined. 
A)  will increase. 
B)  will decrease. 
C)  will stay the same. 
D)  cannot be determined.

Question 15

Use the following to answer questions : $\text {Table: Value of the Marginal}$
 $\text {Product of Labour at Demand}$

$\begin{array} { cc}
\hline \text {Quantity of Labour}&
\text {Total Product}\ 
\hline 0 & 0 \ 1 & 20 \ 2 & 50 \ 3 & 90 \ 4 & 120 \ 5 & 140 \ 6 & 150 \ 7 & 150 \ 8 & 140 \
\hline\end{array}$
-(Table: Value of the Marginal Product of Labour and Demand)Use Table: Value of the Marginal Product of Labour and Demand.In the table,the total product of labour is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.The price of a power cord is $2,the market wage rate is $40 per hour,and 8 workers are hired.Profit can be maximized by hiring _____ worker(s).

Accepted Answer

A)  1 more 
B)  2 more 
C)  1 fewer 
D)  3 fewer 
A)  1 more 
B)  2 more 
C)  1 fewer 
D)  3 fewer

Question 16

Which statement about unions is TRUE?

Accepted Answer

A)  Laws allow unions to discriminate on the basis of gender and ethnicity. 
B)  Unions bargain for better working conditions at the cost of higher wages. 
C)  Unions cause a surplus of labour by bargaining for wages that are higher than the value of the marginal product of labour. 
D)  Unions cause compensating differentials. 
A)  Laws allow unions to discriminate on the basis of gender and ethnicity. 
B)  Unions bargain for better working conditions at the cost of higher wages. 
C)  Unions cause a surplus of labour by bargaining for wages that are higher than the value of the marginal product of labour. 
D)  Unions cause compensating differentials.

Question 17

One objection to the marginal productivity theory of income distribution is the existence of large disparities in income between factors of production that should receive the same payment.

Accepted Answer

A) True 
 B)False

Question 18

In the markets for goods and services,households demand labour and firms supply labour.

Accepted Answer

A) True 
 B)False

Question 19

When interferences in the labour market raise the wage above the equilibrium level,employers may discriminate because there are more job applicants than jobs.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer questions : $\text {Table: Value of the Marginal}$
 $\text {Product of Labour at Demand}$

$\begin{array} { cc}
\hline \text {Quantity of Labour}&
\text {Total Product}\ 
\hline 0 & 0 \ 1 & 20 \ 2 & 50 \ 3 & 90 \ 4 & 120 \ 5 & 140 \ 6 & 150 \ 7 & 150 \ 8 & 140 \
\hline\end{array}$
-(Table: Value of the Marginal Product of Labour and Demand)Use Table: Value of the Marginal Product of Labour and Demand.In the table,the total product of labour is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.If the price of a power cord is $2,the value of the marginal product for the third worker is:

Accepted Answer

A)  $2. 
B)  $10. 
C)  $60. 
D)  $80. 
A)  $2. 
B)  $10. 
C)  $60. 
D)  $80.

A nurse willing to work the midnight to 8 A.M.shift may make more than one who works from 8 A.M.to 4 P.M.because of:

In Canada,the median earnings of immigrant men are greater than that of immigrant women.

A wage _ reduces the quantity of labour supplied through the _ effect.

In the labour market,households demand labour and firms supply goods and services.

Which factor is NOT associated with production at a university?

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that during the holiday season,the price of poster-size copies increases to $12.What happens?

The demand for a factor of production is a(n)_____ demand.

Use the following to answer questions : Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage for bricklayers falls from $110 to $100,the _ bricklayers will _.

According to the efficiency wage model,efficiency wages do NOT:

If a firm hires labour and with its current employees W = VMPL,then profit:

Above-equilibrium wages paid by some employers as an incentive for better performance are called efficiency wages.

Lakisha's labour supply curve is downward sloping for wage rates greater than $40 per hour and upward sloping for wage rates less than $40 per hour.If leisure is a normal good for Lakisha and if the wage is _,the substitution effect of a wage increase is _ than the income effect.

Which statement about unions is TRUE?

One objection to the marginal productivity theory of income distribution is the existence of large disparities in income between factors of production that should receive the same payment.

In the markets for goods and services,households demand labour and firms supply labour.

When interferences in the labour market raise the wage above the equilibrium level,employers may discriminate because there are more job applicants than jobs.

First Principles

Economic Models

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters

Exam 19: Factor Markets and the Distribution of Income

A nurse willing to work the midnight to 8 A.M.shift may make more than one who works from 8 A.M.to 4 P.M.because of:

In Canada,the median earnings of immigrant men are greater than that of immigrant women.

A wage _____ reduces the quantity of labour supplied through the _____ effect.

In the labour market,households demand labour and firms supply goods and services.

Which factor is NOT associated with production at a university?

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print.Now suppose that during the holiday season,the price of poster-size copies increases to $12.What happens?

The demand for a factor of production is a(n)_____ demand.

Use the following to answer questions : Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage for bricklayers falls from $110 to $100,the _____ bricklayers will _____.

According to the efficiency wage model,efficiency wages do NOT:

If a firm hires labour and with its current employees W = VMPL,then profit:

Above-equilibrium wages paid by some employers as an incentive for better performance are called efficiency wages.

Lakisha's labour supply curve is downward sloping for wage rates greater than $40 per hour and upward sloping for wage rates less than $40 per hour.If leisure is a normal good for Lakisha and if the wage is _____,the substitution effect of a wage increase is _____ than the income effect.

Which statement about unions is TRUE?

One objection to the marginal productivity theory of income distribution is the existence of large disparities in income between factors of production that should receive the same payment.

In the markets for goods and services,households demand labour and firms supply labour.

When interferences in the labour market raise the wage above the equilibrium level,employers may discriminate because there are more job applicants than jobs.

First Principles

Economic Models

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters

A wage _ reduces the quantity of labour supplied through the _ effect.

Use the following to answer questions : Figure: The Demand for Bricklayers -(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.If the equilibrium market wage for bricklayers falls from $110 to $100,the _ bricklayers will _.

Lakisha's labour supply curve is downward sloping for wage rates greater than $40 per hour and upward sloping for wage rates less than $40 per hour.If leisure is a normal good for Lakisha and if the wage is _,the substitution effect of a wage increase is _ than the income effect.