Question 1

The labor supply curve starts to bend backward once the

Accepted Answer

A)  Income effect exceeds the substitution effect. 
B)  Substitution effect exceeds the income effect. 
C)  Marginal revenue product of labor equals the marginal utility of leisure. 
D)  Total utility of leisure outweighs the total utility of labor. 
A)  Income effect exceeds the substitution effect. 
B)  Substitution effect exceeds the income effect. 
C)  Marginal revenue product of labor equals the marginal utility of leisure. 
D)  Total utility of leisure outweighs the total utility of labor.

Question 2

President Obama wanted to increase the federal minimum wage.

Accepted Answer

A) True 
 B)False

Question 3

Diagram a model of supply and demand for a competitive labor market with a minimum wage in effect.Identify a group that gains and a group that loses when a minimum wage is imposed.

Accepted Answer

See Figure 30.8 for the model in The Eco

Question 4

In Figure 30.1, the shift in the labor supply curve from S1 to S2 means that

Accepted Answer

A)  The marginal utility of labor has decreased. 
B)  Workers are being paid higher wage rates, given their taste for work. 
C)  The marginal utility of labor relative to leisure has increased. 
D)  The demand for labor has increased, and this encourages more labor force participation. 
A)  The marginal utility of labor has decreased. 
B)  Workers are being paid higher wage rates, given their taste for work. 
C)  The marginal utility of labor relative to leisure has increased. 
D)  The demand for labor has increased, and this encourages more labor force participation.

Question 5

Campbell loves to work.He does not receive any enjoyment from leisure time.The last dollar that he earns each year means just as much to him as the first dollar.Which of the following best describes the shape of Campbell's labor supply curve?

Accepted Answer

A)  Upward-sloping to the right. 
B)  Vertical. 
C)  Downward-sloping to the right. 
D)  Horizontal. 
A)  Upward-sloping to the right. 
B)  Vertical. 
C)  Downward-sloping to the right. 
D)  Horizontal.

Question 6

As marginal physical product diminishes, marginal revenue product

Accepted Answer

A)  Also diminishes. 
B)  Is not affected. 
C)  Rises at a diminishing rate and eventually falls. 
D)  Rises. 
A)  Also diminishes. 
B)  Is not affected. 
C)  Rises at a diminishing rate and eventually falls. 
D)  Rises.

Question 7

If Amber is willing to work additional hours if her wage rate increases, the substitution effect must outweigh the income effect.

Accepted Answer

A) True 
 B)False

Question 8

A production process is defined as

Accepted Answer

A)  The manufacturing of goods and services. 
B)  The mix of resources used to produce output. 
C)  A means by which labor generates revenue. 
D)  A means by which jobs are created for workers. 
A)  The manufacturing of goods and services. 
B)  The mix of resources used to produce output. 
C)  A means by which labor generates revenue. 
D)  A means by which jobs are created for workers.

Question 9

As we work fewer hours and our leisure time increases, the opportunity cost of labor

Accepted Answer

A)  Falls and the marginal utility of income falls. 
B)  Rises and the marginal utility of income falls. 
C)  Falls and the marginal utility of income rises. 
D)  Rises and the marginal utility of income rises. 
A)  Falls and the marginal utility of income falls. 
B)  Rises and the marginal utility of income falls. 
C)  Falls and the marginal utility of income rises. 
D)  Rises and the marginal utility of income rises.

The labor supply curve starts to bend backward once the

President Obama wanted to increase the federal minimum wage.

Diagram a model of supply and demand for a competitive labor market with a minimum wage in effect.Identify a group that gains and a group that loses when a minimum wage is imposed.

In Figure 30.1, the shift in the labor supply curve from S₁ to S₂ means that

Campbell loves to work.He does not receive any enjoyment from leisure time.The last dollar that he earns each year means just as much to him as the first dollar.Which of the following best describes the shape of Campbell's labor supply curve?

As marginal physical product diminishes, marginal revenue product

If Amber is willing to work additional hours if her wage rate increases, the substitution effect must outweigh the income effect.

A production process is defined as

As we work fewer hours and our leisure time increases, the opportunity cost of labor

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

Filters

Exam 16: The Labor Market

The labor supply curve starts to bend backward once the

President Obama wanted to increase the federal minimum wage.

Diagram a model of supply and demand for a competitive labor market with a minimum wage in effect.Identify a group that gains and a group that loses when a minimum wage is imposed.

In Figure 30.1, the shift in the labor supply curve from S1 to S2 means that

Campbell loves to work.He does not receive any enjoyment from leisure time.The last dollar that he earns each year means just as much to him as the first dollar.Which of the following best describes the shape of Campbell's labor supply curve?

As marginal physical product diminishes, marginal revenue product

If Amber is willing to work additional hours if her wage rate increases, the substitution effect must outweigh the income effect.

A production process is defined as

As we work fewer hours and our leisure time increases, the opportunity cost of labor

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

Filters

In Figure 30.1, the shift in the labor supply curve from S₁ to S₂ means that