Question 1

Which of the following programs are in-kind assistance to fight poverty in the United States?

Accepted Answer

A)   social security
B)   Medicaid.
C)   unemployment benefits
D)   Temporary Assistance to Needy Families (TANF) .E) A) and B)
F) A) and C)

Question 2

An advance in technology which increases labor productivity will shift the:

Accepted Answer

A)   labor demand curve to the left.
B)   MRP curve to the left.
C)   MP curve downward.
D)   labor demand curve to the right.E) A) and D)
F) B) and C)

Question 3

Exhibit 10-4 Supply and demand curves for food servers

In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n) :

Accepted Answer

A)   new labor market equilibrium.
B)   excess demand for labor of 10 thousand food servers.
C)   excess supply of labor of food servers.
D)   situation of full employment for food servers.E) All of the above
F) C) and D)

Question 4

Dividing the change in total revenue by the change in labor gives:

Accepted Answer

A)   marginal product of labor.
B)   marginal revenue product of labor.
C)   the price of the output.
D)   demand for the output.E) A) and C)
F) A) and B)

Question 5

Because the benefits distributed under TANF and Medicaid are essentially controlled by the states, critics argue that

Accepted Answer

A)   recipients can receive benefits for a longer time period than if the programs were controlled by the federal government.
B)   people receiving benefits have greater incentive to work more.
C)   poor people with equal needs receive unequal benefits.
D)   a negative income tax controlled by the federal government is less efficient.E) A) and D)
F) C) and D)

Question 6

Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,

Accepted Answer

A)   The African American wage rate is higher without discrimination than with discrimination.
B)   The number of African American workers hired is lower without discrimination than with discrimination.
C)   The white wage rate is higher without discrimination than with discrimination.
D)   The African American wage rate and the white wage rate are equal with and without discrimination; only the number of workers differs.E) A) and B)
F) B) and C)

Question 7

If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:

Accepted Answer

A)   marginal factor cost is $6.
B)   marginal factor cost is $200.
C)   total wage cost is $1,200.
D)   total wage cost is $7,200.E) A) and D)
F) C) and D)

Question 8

A worker's accumulated investment in education, training, experience, and health is called:

Accepted Answer

A)   derived labor demand.
B)   collective entrepreneurship.
C)   seniority.
D)   human capital.E) C) and D)
F) B) and D)

Question 9

A firm's demand curve for labor coincides with the:

Accepted Answer

A)   marginal cost curve.
B)   average cost curve.
C)   marginal revenue curve.
D)   marginal revenue product curve.E) A) and D)
F) A) and C)

Question 10

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) A) and C)
F) All of the above

Question 11

The revenue in the Social Security Trust Fund first fell below the benefits it paid out in 2010. If this trend continues, the Trust Fund will be depleted. What change(s)  occurred to cause the revenue to fall below the benefits?

Accepted Answer

A)   The U.S. Treasury Securities in which the Trust Fund is invested began paying out less interest.
B)   Life expectancy is rising and a larger number of people are retiring.
C)   The age at which retired individuals could start collecting benefits was lowered.
D)   People were allowed to start privately investing some of their money in stocks and lost money through risky investments.E) C) and D)
F) All of the above

Question 12

Exhibit 10-5 A perfectly competitive labor market   Quantity of Labor  (thousands)   Marginal Revenue Product  Wage Rate 5$25.00$5.001020.0010.001515.0015.002010.0020.00255.0025.00\begin{array} { | l | | l | l | } \hline \begin{array} { c } 	ext { Quantity of Labor } \	ext { (thousands)  }\end{array} & 	ext { Marginal Revenue Product } & 	ext { Wage Rate } \\hline \hline 5 & \$ 25.00 & \$ 5.00 \\hline \hline 10 & 20.00 & 10.00 \\hline \hline 15 & 15.00 & 15.00 \\hline \hline 20 & 10.00 & 20.00 \\hline \hline 25 & 5.00 & 25.00 \\hline\end{array} Quantity of Labor  (thousands)  ​510152025​ Marginal Revenue Product $25.0020.0015.0010.005.00​ Wage Rate $5.0010.0015.0020.0025.00​​  In Exhibit 10-5, when the marginal revenue product is $20.00, firms should

Accepted Answer

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

Question 13

Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines.

Accepted Answer

The improvement in technology will boost...

Question 14

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

Accepted Answer

A)   The wage rate has no effect on the quantity of labor supplied .
B)   The labor supply curve is downward sloping.
C)   The supply of labor is determined by the prevailing wage rate.
D)   The typical labor supply curve is upward sloping.E) A) and D)
F) All of the above

Question 15

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

Question 16

If the poverty line in 2017 for a family of four was $24,600, which of the following is correct?

Accepted Answer

A)   The cost of a minimal diet for a family of four was $4,100.
B)   The cost of a minimal diet for a family of four was $6.150.
C)   Unemployment benefits covered the first $24,600 of lost income.
D)   Social security payments for the year totaled a minimum of $24,600 for a family of four.E) None of the above
F) C) and D)

Question 17

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)   the MRP curve.E) B) and D)
F) All of the above

Question 18

If there is employment discrimination against minorities, this will cause the:

Accepted Answer

A)   supply of their services to increase, and their wages to fall.
B)   demand for their services to decline, and their wages to fall.
C)   supply of their services to decline, and their wages to rise.
D)   demand for their services to decline, and their wages to rise.E) None of the above
F) All of the above

Question 19

Which of the following is the best example of an investment in human capital?

Accepted Answer

A)   on-the-job training received by an apprentice electrician
B)   an increase in the number of hours worked per week by a worker in an unskilled laboring job
C)   the purchase of company stock by a worker
D)   payments into a retirement pension plan by a skilled laborerE) A) and D)
F) A) and C)

Question 20

Firms should hire additional units of a resource as long as the:

Accepted Answer

A)   marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
B)   marginal product of the resource is less than the price of the resource.
C)   price of the output produced is positive.
D)   marginal revenue product of the resource exceeds the cost of an additional unit of the resource.E) A) and B)
F) A) and C)

Exam 10: Labor Markets and Income Distribution

The revenue in the Social Security Trust Fund first fell below the benefits it paid out in 2010. If this trend continues, the Trust Fund will be depleted. What change(s) occurred to cause the revenue to fall below the benefits?

Correct Answer
verified

A worker's accumulated investment in education, training, experience, and health is called:

Correct Answer
verified

Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,

Correct Answer
verified

Dividing the change in total revenue by the change in labor gives:

Correct Answer
verified

An advance in technology which increases labor productivity will shift the:

Correct Answer
verified

Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines.

Correct Answer
verified
The improvement in technology will boost...
View Answer

Which of the following is the best example of an investment in human capital?

Correct Answer
verified

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

Correct Answer
verified

If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:

Correct Answer
verified

If the poverty line in 2017 for a family of four was $24,600, which of the following is correct?

Correct Answer
verified

Correct Answer
verified

If the price of labor falls, we can expect:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A firm's demand curve for labor coincides with the:

Correct Answer
verified

Exhibit 10-4 Supply and demand curves for food servers In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n) :

Correct Answer
verified

If there is employment discrimination against minorities, this will cause the:

Correct Answer
verified

Which of the following programs are in-kind assistance to fight poverty in the United States?

Correct Answer
verified

Because the benefits distributed under TANF and Medicaid are essentially controlled by the states, critics argue that

Correct Answer
verified

Firms should hire additional units of a resource as long as the:

Correct Answer
verified

Exam 10: Labor Markets and Income Distribution

The revenue in the Social Security Trust Fund first fell below the benefits it paid out in 2010. If this trend continues, the Trust Fund will be depleted. What change(s) occurred to cause the revenue to fall below the benefits?

Correct AnswerverifiedShow Answer

A worker's accumulated investment in education, training, experience, and health is called:

Correct AnswerverifiedShow Answer

Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,

Correct AnswerverifiedShow Answer

Dividing the change in total revenue by the change in labor gives:

Correct AnswerverifiedShow Answer

An advance in technology which increases labor productivity will shift the:

Correct AnswerverifiedShow Answer

Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines.

Correct AnswerverifiedThe improvement in technology will boost...View AnswerShow Answer

Which of the following is the best example of an investment in human capital?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:

Correct AnswerverifiedShow Answer

If the poverty line in 2017 for a family of four was $24,600, which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the price of labor falls, we can expect:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm's demand curve for labor coincides with the:

Correct AnswerverifiedShow Answer

Exhibit 10-4 Supply and demand curves for food servers In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n) :

Correct AnswerverifiedShow Answer

If there is employment discrimination against minorities, this will cause the:

Correct AnswerverifiedShow Answer

Which of the following programs are in-kind assistance to fight poverty in the United States?

Correct AnswerverifiedShow Answer

Because the benefits distributed under TANF and Medicaid are essentially controlled by the states, critics argue that

Correct AnswerverifiedShow Answer

Firms should hire additional units of a resource as long as the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The improvement in technology will boost...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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