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| 3 | |
The marginal product of the 4th worker is: |
| | A) | 3 |
| | B) | 5 |
| | C) | 10 |
| | D) | 15 |
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| 4 | |
If the price of one unit of output is $15, then the value of marginal product of labor for the 3rd worker is: |
| | A) | $10 |
| | B) | $15 |
| | C) | $75 |
| | D) | $150 |
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| 5 | |
If the wage rate is $120, how many workers does the firm employ? |
| | A) | 2 |
| | B) | 3 |
| | C) | 4 |
| | D) | 5 |
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| 6 | |
When deciding how many workers a firm should employ, the firm should consider all of the following except: |
| | A) | Output |
| | B) | Price |
| | C) | Cost of machinery |
| | D) | Wage rate |
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| 7 | |
If the firm uses only one input, labor, in its production process, then: |
| | A) | The decision as to the profit maximizing output is the same as the decision as to how many workers to employ |
| | B) | The decision as to how many workers to employ becomes irrelevant |
| | C) | The decision as to the profit maximizing output becomes different from the decision as to how many workers to employ |
| | D) | None of the above |
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| 8 | |
An individual's supply of labor curve is: |
| | A) | Upward sloping |
| | B) | Downward sloping |
| | C) | Horizontal |
| | D) | Can be either a or b |
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| 9 | |
A profession's supply of labor curve is: |
| | A) | Upward sloping |
| | B) | Downward sloping |
| | C) | Horizontal |
| | D) | Can be either a or b |
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| 10 | |
According to the no cash on the table principle, which of the following does not account for long run differences in earnings? |
| | A) | Talent |
| | B) | Luck |
| | C) | Beauty |
| | D) | Hard Work |
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| 11 | |
A labor union: |
| | A) | Restricts the supply of labor in unionized companies and raises wages |
| | B) | Increases the supply of labor in unionized companies and reduces wages |
| | C) | Results in the unionized companies having a cost advantage |
| | D) | Results in the non-unionized companies earning a lower profit |
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| 12 | |
Based on compensating work differentials, working in a job that is not safe and has night shifts: |
| | A) | Decreases wages |
| | B) | Does not affect wages |
| | C) | Increases wages |
| | D) | None of the above |
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| 13 | |
A discriminating firm has_____________than a non-discriminating firm: |
| | A) | Higher profits |
| | B) | Equal profits |
| | C) | Lower profits |
| | D) | None of the above |
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| 14 | |
Markets in which small differences in human capital translate into large differences in pay are known as: |
| | A) | Human capital markets |
| | B) | Winner-take-all markets |
| | C) | Loser-give-all markets |
| | D) | None of the above |
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| 15 | |
Free markets result in an ____________ outcome, at the expense of ____________. |
| | A) | Equal; efficiency |
| | B) | Inefficient; efficiency |
| | C) | Efficient; equality |
| | D) | None of the above |
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| 16 | |
A means-tested program means that: |
| | A) | The more income a family has, the greater the benefits it receives under these programs |
| | B) | The more income a family has, the smaller the benefits it receives under these programs |
| | C) | The less income a family has, the smaller the benefits it receives under these programs |
| | D) | None of the above |
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| 17 | |
A minimum wage above equilibrium results in: |
| | A) | A gain in total surplus |
| | B) | An increase in employment |
| | C) | An increase in unemployment |
| | D) | No effect on surplus or employment |
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