Question 1

Exhibit 10-1 Labor and output data
 
-In Exhibit 10-1,if product price is fixed at $8,the MRP of the 2nd worker is equal to:

Accepted Answer

A)   $25.
B)   $125.
C)   $200.
D)   $175.
E)   $45.F) B) and D)
G) C) and D)

Question 2

The official poverty rate for all persons declined sharply between 1959 and:

Accepted Answer

A)   2000.
B)   1970.
C)   1980.
D)   1990.E) All of the above
F) B) and C)

Question 3

If the market price of bicycle frames is $500,and frame welders earn a wage of $50,how many welders will be hired?

Accepted Answer

A)   10.
B)   More than 10.
C)   Fewer than 10.
D)   Hiring will stop when the MP is 10.
E)   Hiring will stop when the MP is 0.1.F) C) and D)
G) A) and B)

Question 4

Of the following demographic groups,which has the lowest poverty rate in the U.S.?

Accepted Answer

A)   Families headed by a female with no adult male present.
B)   Families in which the "head of the household" has not attained a high-school education.
C)   Families headed by a male with no adult female present.
D)   Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.E) B) and D)
F) A) and B)

Question 5

Marginal revenue product is defined as the extra:

Accepted Answer

A)   output a firm would receive after hiring one more unit of resource.
B)   cost of hiring one more unit of resource
C)   revenue earned by selling one more unit of product.
D)   revenue earned by hiring one more unit of resource
E)   output received by spending one more dollar on resourcesF) A) and D)
G) B) and E)

Question 6

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

Accepted Answer

A)   upward sloping.
B)   downward sloping.
C)   horizontal.
D)   greater than MFC.
E)   the MRP curve.F) A) and E)
G) A) and D)

Question 7

If the price of labor falls,we can expect:

Accepted Answer

A)   demand for labor will increase.
B)   quantity demanded of labor will increase.
C)   demand for labor will decrease.
D)   quantity demanded of labor will decrease.
E)   marginal factor cost to rise in a competitive market.F) A) and B)
G) A) and E)

Question 8

Exhibit 10-1 Labor and output data
 
-In Exhibit 10-1,if product price is fixed at $8,the MRP of the 5th worker is equal to:

Accepted Answer

A)   $50.
B)   $80.
C)   $10.
D)   $100
E)   $160.F) A) and B)
G) None of the above

Question 9

Currently,union membership in the United States is about:

Accepted Answer

A)   10 percent.
B)   15 percent.
C)   20 percent.
D)   25 percent.E) A) and C)
F) A) and B)

Question 10

For a perfectly competitive firm,marginal revenue product is equal to:

Accepted Answer

A)   price minus marginal cost.
B)   price times marginal revenue.
C)   price times marginal product.
D)   none of the above.E) C) and D)
F) All of the above

Question 11

In the United States,families headed by single women have higher poverty rates than families headed by single men or by married couples.

Accepted Answer

A) True 
 B)False

Question 12

Exhibit 10-5 A perfectly competitive labor market
 
-In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Accepted Answer

A)   continue hiring
B)   stop hiring
C)   start firing
D)   pay a wage above $15.00 to its workersE) B) and D)
F) A) and C)

Question 13

Suppose there are 100 identical firms producing package delivery services.One of the firms finds that when it has to pay a wage rate of $7,it hires 20 delivery people.The firm charges an average price of $10 to deliver a package.From this information,we know that the package delivery industry is hiring a total of:

Accepted Answer

A)   100 workers.
B)   200 workers.
C)   700 workers.
D)   2,000 workers.
E)   10,000 workers.F) A) and C)
G) A) and B)

Question 14

Wage discrimination means workers with equal productivity are paid unequal wages,or workers with unequal productivity are paid equal wages.

Accepted Answer

A) True 
 B)False

Question 15

As the price of a competitive firm's product rises,the firm's demand for labor also rises.

Accepted Answer

A) True 
 B)False

Question 16

As a percentage of nonfarm workers,union membership in the United States grew most rapidly since 1945.

Accepted Answer

A) True 
 B)False

Question 17

Since the demand for labor depends on the demand for the product labor produces,the demand for labor is called:

Accepted Answer

A)   primary demand.
B)   secondary demand.
C)   dependent demand.
D)   derived demand.E) A) and C)
F) A) and B)

Question 18

Which of the following statements concerning the supply of labor is true?

Accepted Answer

A)   The supply of labor is determined by the prevailing wage rate.
B)   The labor supply curve is downward sloping.
C)   The wage rate has no effect on the supply of labor.
D)   None of the above.E) C) and D)
F) A) and D)

Question 19

Assume consumer demand for CD-ROMs increases.The result is a(n) :

Accepted Answer

A)   increase in derived demand for workers in the CD-ROM industry.
B)   increase in the marginal revenue product of firms in the CD-ROM industry.
C)   rightward shift in the market demand for labor curve in the CD-ROM industry.
D)   all of the above.
E)   none of the above.F) A) and C)
G) B) and E)

Question 20

Which of the following is not included in census income?

Accepted Answer

A)   wages and salaries.
B)   property income.
C)   cash welfare benefits.
D)   in-kind transfers.E) C) and D)
F) B) and C)

Exam 10: Labor Markets and Income Distribution

Which of the following statements concerning the supply of labor is true?

Correct Answer
verified

Which of the following is not included in census income?

Correct Answer
verified

For a perfectly competitive firm,marginal revenue product is equal to:

Correct Answer
verified

Since the demand for labor depends on the demand for the product labor produces,the demand for labor is called:

Correct Answer
verified

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 2nd worker is equal to:

Correct Answer
verified

Wage discrimination means workers with equal productivity are paid unequal wages,or workers with unequal productivity are paid equal wages.

Correct Answer
verified

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

Correct Answer
verified

Correct Answer
verified

As the price of a competitive firm's product rises,the firm's demand for labor also rises.

Correct Answer
verified

Marginal revenue product is defined as the extra:

Correct Answer
verified

Assume consumer demand for CD-ROMs increases.The result is a(n) :

Correct Answer
verified

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 5th worker is equal to:

Correct Answer
verified

Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Correct Answer
verified

Of the following demographic groups,which has the lowest poverty rate in the U.S.?

Correct Answer
verified

As a percentage of nonfarm workers,union membership in the United States grew most rapidly since 1945.

Correct Answer
verified

If the market price of bicycle frames is $500,and frame welders earn a wage of $50,how many welders will be hired?

Correct Answer
verified

In the United States,families headed by single women have higher poverty rates than families headed by single men or by married couples.

Correct Answer
verified

Currently,union membership in the United States is about:

Correct Answer
verified

If the price of labor falls,we can expect:

Correct Answer
verified

The official poverty rate for all persons declined sharply between 1959 and:

Correct Answer
verified

Exam 10: Labor Markets and Income Distribution

Which of the following statements concerning the supply of labor is true?

Correct AnswerverifiedShow Answer

Which of the following is not included in census income?

Correct AnswerverifiedShow Answer

For a perfectly competitive firm,marginal revenue product is equal to:

Correct AnswerverifiedShow Answer

Since the demand for labor depends on the demand for the product labor produces,the demand for labor is called:

Correct AnswerverifiedShow Answer

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 2nd worker is equal to:

Correct AnswerverifiedShow Answer

Wage discrimination means workers with equal productivity are paid unequal wages,or workers with unequal productivity are paid equal wages.

Correct AnswerverifiedShow Answer

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

As the price of a competitive firm's product rises,the firm's demand for labor also rises.

Correct AnswerverifiedShow Answer

Marginal revenue product is defined as the extra:

Correct AnswerverifiedShow Answer

Assume consumer demand for CD-ROMs increases.The result is a(n) :

Correct AnswerverifiedShow Answer

Exhibit 10-1 Labor and output data -In Exhibit 10-1,if product price is fixed at $8,the MRP of the 5th worker is equal to:

Correct AnswerverifiedShow Answer

Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Correct AnswerverifiedShow Answer

Of the following demographic groups,which has the lowest poverty rate in the U.S.?

Correct AnswerverifiedShow Answer

As a percentage of nonfarm workers,union membership in the United States grew most rapidly since 1945.

Correct AnswerverifiedShow Answer

If the market price of bicycle frames is $500,and frame welders earn a wage of $50,how many welders will be hired?

Correct AnswerverifiedShow Answer

In the United States,families headed by single women have higher poverty rates than families headed by single men or by married couples.

Correct AnswerverifiedShow Answer

Currently,union membership in the United States is about:

Correct AnswerverifiedShow Answer

If the price of labor falls,we can expect:

Correct AnswerverifiedShow Answer

The official poverty rate for all persons declined sharply between 1959 and:

Correct AnswerverifiedShow Answer

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