Question 1

Doctors must complete four years of undergraduate education and four years of medical school and work three to eight years in a hospital before they can fully practice on their own.In contrast,a worker at a fast-food restaurant need not complete high school.
a.How does the difference in education and training affect the relative labor supply in these professions?
b.Using a supply and demand graph and your answer to part a, show why doctors earn higher wages than fast-food workers do.

Accepted Answer

a.There will be a smaller supply of doct...

Question 2

There will be a __________ of workers when the wage is __________ the equilibrium wage.

Accepted Answer

A)   surplus; at
B)   surplus; below
C)   surplus; above
D)   shortage; above
E)   shortage; atF) None of the above
G) A) and E)

Question 3

The distribution of illegal immigrant workers in the United States is:

Accepted Answer

A)   concentrated in low-skilled jobs.
B)   concentrated in high-skilled jobs.
C)   evenly distributed among low-skilled, medium-skilled, and high-skilled jobs.
D)   more concentrated in low-skilled and high-skilled jobs than in medium-skilled jobs.
E)   more concentrated in low-skilled and medium-skilled jobs than in high-skilled jobs.F) B) and D)
G) A) and E)

Question 4

When the opportunity cost of leisure is high,people tend to work __________ hours.When it is low,people tend to work __________ hours.

Accepted Answer

A)   the same; fewer
B)   more; fewer
C)   fewer; more
D)   more; the same
E)   fewer; the sameF) A) and D)
G) B) and D)

Question 5

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

Accepted Answer

A)   Demand will fall; the equilibrium wage will fall.
B)   Demand will increase; the equilibrium wage will fall.
C)   Demand will stay the same; the equilibrium wage will rise.
D)   Demand will decrease; the equilibrium wage will rise.
E)   Demand will increase; the equilibrium wage will increase.F) A) and C)
G) B) and D)

Question 6

Factors of production are:

Accepted Answer

A)   goods and services.
B)   used to make goods and services.
C)   purchased by the consumer for personal use.
D)   sold by the consumer for income.
E)   the property of firms.F) All of the above
G) A) and C)

Question 7

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Accepted Answer

A)   less
B)   the same
C)   more
D)   half as much
E)   a third moreF) A) and E)
G) B) and D)

Question 8

Refer to the accompanying table to answer the questions that follow.
 
-If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Accepted Answer

A)   1
B)   2
C)   3
D)   4
E)   5F) C) and D)
G) All of the above

Question 9

Because a firm's demand for a factor of production is derived from its decision to supply a good in the market,it is called a:

Accepted Answer

A)   production demand.
B)   derived demand.
C)   demand-supply transfer.
D)   secondary demand.
E)   differentiated demand.F) B) and E)
G) C) and D)

Question 10

If more of the production process for automobiles were switched over to machines,the demand for auto-factory assembly line workers would __________ for machine maintenance.

Accepted Answer

A)   decline but increase
B)   decline and also decline
C)   increase but decline
D)   increase and also increase
E)   remained unchanged but increaseF) A) and E)
G) C) and D)

Question 11

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Accepted Answer

A)   will be able to keep her job.
B)   is likely to work overtime.
C)   will work less.
D)   is likely to be fired.
E)   will not be able to find work anywhere.F) C) and D)
G) A) and B)

Question 12

In the short run,wages in the home country will __________ when a company outsources its operations because labor demand in the home country has __________.

Accepted Answer

A)   rise; risen
B)   stay the same; fallen
C)   double; risen
D)   fall by a third; risen
E)   fall; fallenF) A) and B)
G) C) and E)

Question 13

Refer to the accompanying table to answer the questions that follow.
 
-The marginal product of labor of the fourth worker is:

Accepted Answer

A)   10.
B)   20.
C)   4.
D)   38.
E)   42.F) B) and C)
G) C) and D)

Question 14

The accompanying graph represents Zendar's labor market. Use this graph to answer the questions that follow.
 
-What is the equilibrium number of workers in Zendar?

Accepted Answer

A)   20
B)   25
C)   30
D)   35
E)   40F) B) and E)
G) C) and E)

Question 15

Refer to the accompanying graphs to answer the questions that follow.

-Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

Accepted Answer

A)   Graph A
B)   Graph B
C)   Graph C
D)   Graph D
E)   Graph EF) A) and C)
G) A) and B)

Question 16

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

Accepted Answer

A)   leisure and derived demand
B)   work and wages
C)   work and leisure
D)   wages and productivity
E)   technology and wagesF) A) and E)
G) None of the above

Question 17

Lakeside Tubing knows that its total product schedule is as follows.It currently rents an inner tube for $5.Graph the labor demand curve.

Accepted Answer

The first thing we need to do is to find...

Question 18

You and your friend get into an argument when she finds out that you earn more than she does.She says it is not fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Accepted Answer

Students should refer to the supply and ...

Question 19

The citizens of Kingsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Kingsville to __________ and the labor supply in Deville to shift __________.

Accepted Answer

A)   shift right; right
B)   shift left; left
C)   remain unchanged; right
D)   shift left; right
E)   shift right; leftF) C) and D)
G) B) and C)

Question 20

Refer to the accompanying table to answer the questions that follow.
 
-If the price of output is $5,the value of the marginal product of labor of the third worker is:

Accepted Answer

A)   $8.
B)   $30.
C)   $40.
D)   $38.
E)   $190.F) A) and B)
G) A) and C)

Exam 8: Labor Markets and Earnings

Lakeside Tubing knows that its total product schedule is as follows.It currently rents an inner tube for $5.Graph the labor demand curve.

Correct Answer
verified
The first thing we need to do is to find...
View Answer

When the opportunity cost of leisure is high,people tend to work hours.When it is low,people tend to work hours.

Correct Answer
verified

Factors of production are:

Correct Answer
verified

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

Correct Answer
verified

Refer to the accompanying table to answer the questions that follow. -If the price of output is $5,the value of the marginal product of labor of the third worker is:

Correct Answer
verified

The distribution of illegal immigrant workers in the United States is:

Correct Answer
verified

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

Correct Answer
verified

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Correct Answer
verified

There will be a of workers when the wage is the equilibrium wage.

Correct Answer
verified

Refer to the accompanying table to answer the questions that follow. -If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Correct Answer
verified

In the short run,wages in the home country will when a company outsources its operations because labor demand in the home country has .

Correct Answer
verified

You and your friend get into an argument when she finds out that you earn more than she does.She says it is not fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Correct Answer
verified
Students should refer to the supply and ...
View Answer

Correct Answer
verified
a.There will be a smaller supply of doct...
View Answer

Because a firm's demand for a factor of production is derived from its decision to supply a good in the market,it is called a:

Correct Answer
verified

If more of the production process for automobiles were switched over to machines,the demand for auto-factory assembly line workers would __________ for machine maintenance.

Correct Answer
verified

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

Correct Answer
verified

The citizens of Kingsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Kingsville to and the labor supply in Deville to shift .

Correct Answer
verified

The accompanying graph represents Zendar's labor market. Use this graph to answer the questions that follow. -What is the equilibrium number of workers in Zendar?

Correct Answer
verified

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Correct Answer
verified

Refer to the accompanying table to answer the questions that follow. -The marginal product of labor of the fourth worker is:

Correct Answer
verified

Exam 8: Labor Markets and Earnings

Lakeside Tubing knows that its total product schedule is as follows.It currently rents an inner tube for $5.Graph the labor demand curve.

Correct AnswerverifiedThe first thing we need to do is to find...View AnswerShow Answer

When the opportunity cost of leisure is high,people tend to work __________ hours.When it is low,people tend to work __________ hours.

Correct AnswerverifiedShow Answer

Factors of production are:

Correct AnswerverifiedShow Answer

Refer to the accompanying graphs to answer the questions that follow. -Choose the graph that reflects this scenario: Sallie decides that she values income much more strongly because she uses the money to buy goods she can enjoy more than free time.

Correct AnswerverifiedShow Answer

Refer to the accompanying table to answer the questions that follow. -If the price of output is $5,the value of the marginal product of labor of the third worker is:

Correct AnswerverifiedShow Answer

The distribution of illegal immigrant workers in the United States is:

Correct AnswerverifiedShow Answer

Companies begin to find that customers,when calling customer service,want to talk to real people rather than to a recording.What will happen to demand for receptionists and the market equilibrium wage?

Correct AnswerverifiedShow Answer

When their wages rise,Bob works more and Lisa works less.We can infer that Bob values income __________ than Lisa.

Correct AnswerverifiedShow Answer

There will be a __________ of workers when the wage is __________ the equilibrium wage.

Correct AnswerverifiedShow Answer

Refer to the accompanying table to answer the questions that follow. -If the price of output is $2 and the wage for workers is $4,how many workers will the firm hire?

Correct AnswerverifiedShow Answer

In the short run,wages in the home country will __________ when a company outsources its operations because labor demand in the home country has __________.

Correct AnswerverifiedShow Answer

You and your friend get into an argument when she finds out that you earn more than she does.She says it is not fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Correct AnswerverifiedStudents should refer to the supply and ...View AnswerShow Answer

Correct Answerverifieda.There will be a smaller supply of doct...View AnswerShow Answer

Because a firm's demand for a factor of production is derived from its decision to supply a good in the market,it is called a:

Correct AnswerverifiedShow Answer

If more of the production process for automobiles were switched over to machines,the demand for auto-factory assembly line workers would __________ for machine maintenance.

Correct AnswerverifiedShow Answer

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

Correct AnswerverifiedShow Answer

The citizens of Kingsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Kingsville to __________ and the labor supply in Deville to shift __________.

Correct AnswerverifiedShow Answer

The accompanying graph represents Zendar's labor market. Use this graph to answer the questions that follow. -What is the equilibrium number of workers in Zendar?

Correct AnswerverifiedShow Answer

Bobby knows that she is producing a value just equal to her wage.If the price of what she makes falls,Bobby knows that she:

Correct AnswerverifiedShow Answer

Refer to the accompanying table to answer the questions that follow. -The marginal product of labor of the fourth worker is:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The first thing we need to do is to find...
View Answer

When the opportunity cost of leisure is high,people tend to work hours.When it is low,people tend to work hours.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

There will be a of workers when the wage is the equilibrium wage.

Correct Answer
verified

Correct Answer
verified

In the short run,wages in the home country will when a company outsources its operations because labor demand in the home country has .

Correct Answer
verified

Correct Answer
verified
Students should refer to the supply and ...
View Answer

Correct Answer
verified
a.There will be a smaller supply of doct...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The citizens of Kingsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Kingsville to and the labor supply in Deville to shift .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified