Question 1

Gabriel works as a waiter for a catering business. He is scheduled to work an event on Saturday that would earn him $100, Gabriel's sister invites him to go horseback riding on Saturday instead, but Gabriel decides to go to work. This implies that Gabriel's opportunity cost of working is:

Accepted Answer

A)  greater than $100.
B)  less than $100.
C)  equal to $100.
D)  no more than $100.E) B) and C)
F) All of the above

Question 2

Which of the following would be considered a "leisure" activity by economists?

Accepted Answer

A)  Mopping the floor at McDonald's for minimum wage
B)  Mopping your kitchen floor
C)  Folding sweaters while working at the Gap
D)  None of these activities would be considered leisure.E) B) and D)
F) B) and C)

Question 3

Which of the following would be considered a "leisure" activity by economists?

Accepted Answer

A)  Driving an on-duty taxi
B)  Driving to the movies
C)  Driving a forklift for work
D)  Driving a city busE) C) and D)
F) B) and C)

Question 4

In general, the larger the membership of a union, the:

Accepted Answer

A)  more power it has to keep wages above equilibrium.
B)  less power it has to keep wages above equilibrium.
C)  less effective it will be, due to the distribution of power within the organization.
D)  greater the chance that it will abuse its power.E) A) and C)
F) B) and D)

Question 5

Dhriti works at a local factory for $12 an hour and typically works 40 hours a week. The company threatens layoffs, so Dhriti and the other employees agree to a pay cut. Dhriti now earns $10 an hour and works every hour over 40 that her boss will let her. Because Dhriti's response to this pay cut was to work more, there is a dominant:

Accepted Answer

A)  income effect.
B)  price effect.
C)  substitution effect.
D)  labor effect.E) All of the above
F) A) and B)

Question 6

The ingredients that go into making any good or service are called the:

Accepted Answer

A)  output makers.
B)  factors of production.
C)  factors of output.
D)  production ingredients.E) A) and B)
F) None of the above

Question 7

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Accepted Answer

A)  There will be a shortage of workers who want to work at that wage.
B)  There will be no unemployment in the market.
C)  Firms will have a hard time finding employees.
D)  All of these are true.E) A) and C)
F) All of the above

Question 8

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Accepted Answer

A)  Excess workers will want to work at that wage.
B)  There will be unemployment.
C)  Firms will have a hard time finding employees.
D)  Firms will be forced by the government to adjust wages back to equilibrium.E) C) and D)
F) None of the above

Question 9

If the income effect outweighs the price effect of a wage increase, the labor supply curve will:

Accepted Answer

A)  slope upward.
B)  slope downward.
C)  be perfectly flat.
D)  be perfectly vertical.E) None of the above
F) All of the above

Question 10

When a worker has a rare skill or talent, supply in that labor market:

Accepted Answer

A)  is low.
B)  is high.
C)  depends on the other factors of production.
D)  depends on the output produced.E) All of the above
F) A) and C)

Question 11

Which of the following would not be considered a "leisure" activity by economists?

Accepted Answer

A)  Making dinner
B)  Going skiing
C)  Cleaning the bathroom floor
D)  Making a work call from homeE) None of the above
F) A) and C)

Question 12

In a competitive labor market, if the demand for labor increases, labor demand will shift to the _______ and wages will _______.

Accepted Answer

A)  right; increase
B)  left; increase
C)  right; decrease
D)  left; decreaseE) A) and B)
F) B) and C)

Question 13

The factor distribution of income:

Accepted Answer

A)  shows how much income people get from labor compared to land and capital.
B)  refers to the pattern of income that people derive from different factors of production.
C)  hasn't changed substantially in the last century in the United States.
D)  All of these are true.E) None of the above
F) A) and D)

Question 14

For any competitive labor market, what change would have to occur to cause labor supply to increase and the labor supply curve to shift to the right?

Accepted Answer

A)  Number of firms increases
B)  Opportunity cost of work decreases
C)  Number of workers decreases
D)  Opportunity cost of work increasesE) B) and D)
F) A) and D)

Question 15

If a firm adopts a labor-augmenting piece of technology:

Accepted Answer

A)  labor demand will increase.
B)  labor supply will increase.
C)  labor demand will decrease.
D)  labor supply will decrease.E) None of the above
F) A) and D)

Question 16

If the graph shown displays a competitive labor market:

Accepted Answer

A)  D represents the workers' demand for jobs at each wage.
B)  Q* represents the equilibrium wage.
C)  P* represents how many people are employed in the market.
D)  Q* represents the equilibrium number of workers in the market.E) C) and D)
F) All of the above

Question 17

An increase in the demand for peanuts will affect the labor market for peanut farm workers. We would expect to see a(n) _______ in labor _______, resulting in _______ wages.

Accepted Answer

A)  increase; demand; higher
B)  increase; supply; higher
C)  decrease; demand; lower
D)  decrease; supply; lowerE) C) and D)
F) B) and D)

Question 18

In the United States, some of the most powerful unions:

Accepted Answer

A)  have organized workers across several markets.
B)  have nearly 100 percent participation of workers.
C)  hit their peak in the 1940s.
D)  All of these statements are true.E) All of the above
F) C) and D)

Question 19

Which of the following statements describes a "company town"?

Accepted Answer

A)  All employees of a company live within the town's confines.
B)  A single company employs the great majority of people and owns most structures in the town.
C)  A company directs most town business by assisting the local government.
D)  A single company directly regulates and monitors all activity in the town.E) None of the above
F) A) and B)

Question 20

The most common way for workers to hold market power is by:

Accepted Answer

A)  participating in a monopsony.
B)  being unionized.
C)  competing for minimum wage.
D)  None of these are true.E) B) and C)
F) A) and C)

Exam 16: The Facts of Production

The ingredients that go into making any good or service are called the:

Correct Answer
verified

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Correct Answer
verified

Gabriel works as a waiter for a catering business. He is scheduled to work an event on Saturday that would earn him $100, Gabriel's sister invites him to go horseback riding on Saturday instead, but Gabriel decides to go to work. This implies that Gabriel's opportunity cost of working is:

Correct Answer
verified

In general, the larger the membership of a union, the:

Correct Answer
verified

In a competitive labor market, if the demand for labor increases, labor demand will shift to the _ and wages will _.

Correct Answer
verified

When a worker has a rare skill or talent, supply in that labor market:

Correct Answer
verified

If the income effect outweighs the price effect of a wage increase, the labor supply curve will:

Correct Answer
verified

The most common way for workers to hold market power is by:

Correct Answer
verified

If the graph shown displays a competitive labor market:

Correct Answer
verified

Which of the following would not be considered a "leisure" activity by economists?

Correct Answer
verified

Correct Answer
verified

For any competitive labor market, what change would have to occur to cause labor supply to increase and the labor supply curve to shift to the right?

Correct Answer
verified

An increase in the demand for peanuts will affect the labor market for peanut farm workers. We would expect to see a(n) ___ in labor _, resulting in _____ wages.

Correct Answer
verified

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Correct Answer
verified

Which of the following would be considered a "leisure" activity by economists?

Correct Answer
verified

In the United States, some of the most powerful unions:

Correct Answer
verified

Which of the following statements describes a "company town"?

Correct Answer
verified

The factor distribution of income:

Correct Answer
verified

Which of the following would be considered a "leisure" activity by economists?

Correct Answer
verified

If a firm adopts a labor-augmenting piece of technology:

Correct Answer
verified

Exam 16: The Facts of Production

The ingredients that go into making any good or service are called the:

Correct AnswerverifiedShow Answer

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Correct AnswerverifiedShow Answer

Gabriel works as a waiter for a catering business. He is scheduled to work an event on Saturday that would earn him $100, Gabriel's sister invites him to go horseback riding on Saturday instead, but Gabriel decides to go to work. This implies that Gabriel's opportunity cost of working is:

Correct AnswerverifiedShow Answer

In general, the larger the membership of a union, the:

Correct AnswerverifiedShow Answer

In a competitive labor market, if the demand for labor increases, labor demand will shift to the _______ and wages will _______.

Correct AnswerverifiedShow Answer

When a worker has a rare skill or talent, supply in that labor market:

Correct AnswerverifiedShow Answer

If the income effect outweighs the price effect of a wage increase, the labor supply curve will:

Correct AnswerverifiedShow Answer

The most common way for workers to hold market power is by:

Correct AnswerverifiedShow Answer

If the graph shown displays a competitive labor market:

Correct AnswerverifiedShow Answer

Which of the following would not be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For any competitive labor market, what change would have to occur to cause labor supply to increase and the labor supply curve to shift to the right?

Correct AnswerverifiedShow Answer

An increase in the demand for peanuts will affect the labor market for peanut farm workers. We would expect to see a(n) _______ in labor _______, resulting in _______ wages.

Correct AnswerverifiedShow Answer

The graph shown displays a competitive market that is currently offering a wage less than P*. Which of the following statements is true about this market?

Correct AnswerverifiedShow Answer

Which of the following would be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

In the United States, some of the most powerful unions:

Correct AnswerverifiedShow Answer

Which of the following statements describes a "company town"?

Correct AnswerverifiedShow Answer

The factor distribution of income:

Correct AnswerverifiedShow Answer

Which of the following would be considered a "leisure" activity by economists?

Correct AnswerverifiedShow Answer

If a firm adopts a labor-augmenting piece of technology:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In a competitive labor market, if the demand for labor increases, labor demand will shift to the _ and wages will _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

An increase in the demand for peanuts will affect the labor market for peanut farm workers. We would expect to see a(n) ___ in labor _, resulting in _____ wages.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified