Q51. If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your school are$500 per credithour, then the marginal revenue product for your school from hiring that instructor that semesteris:

A.

$150,000.

B.

$500.

C.

$1500.

D.

$300,000.

Q52. The market demand curve for labor is the relationship between the wage and the quantity of laborthat:

A.

any given firm is willing to employ.

B.

any given worker is willing to provide.

C.

all workers are willing to provide.

D.

all firms are willing to employ.

Q53. Which of the following is a longrun impact of an increase in thewage?

A.

The quantity demanded of labor decreases because firms will have an incentive to use more of other inputs instead of labor.

B.

The quantity demanded of labor increases because there are no diminishing returns.

C.

The quantity demanded of labor increases because the marginal revenue product curve shifts upward due to a higher product price.

D.

The quantity demanded of labor decreases because firms face a higher degree of diminishing returns.

Q54. Inless-developed countries, the________ effect leads to________.

A.

input-substitution; labor-intensive production

B.

input-substitution; mechanized production

C.

outputeffect; labor-intensive production

D.

inputeffect; mechanized production

Q55. Recall the Application about the salaries paid in Major League Baseball to answer the following question. Some Major League Baseball players are freeagents, meaning they are free to negotiate a contract with any team. Other players are journeymen andapprentices, who are restricted to a single team.

Recall the Application. What was the reason that rookies on the average are paid much less than theirMRPs?

A.

Their negotiations are restricted to only one team.

B.

Most of their salary goes to health insurance.

C.

They are terrible at negotiations.

D.

None of them are goodplayers, so they are paid very little.

Q56. The price of an hour of leisure time is

A.

the minimum wage rate.

B.

zero.

C.

determined by the value of the activity the person engages in during that hour of leisure.

D.

the income that could have been earned in that hour.

Q57. According to the income effect of laborsupply, if leisure is a normalgood, then an increase in the wage rate will________ the quantity of labor________.

A.

increase; demanded

B.

decrease; demanded

C.

increase; supplied

D.

decrease; supplied

Q58. Suppose that the wage for teachers increases relative to other occupations. We know that________ people will work asteachers, and the total number of hours worked will________.

A.

fewer; decrease

B.

fewer; increase

C.

more; decrease

D.

more; increase

Q59. A minimum wage that is less than the prevailing market wage will

A.

have no effect on the market.

B.

reduce wages.

C.

increases wages.

D.

increase unemployment.

Q60. Suppose that studies show that a ten percent increase in the minimum wage decreases the number of minimum wage jobs by one percent. That would be the case if

A.

supply of labor is inelastic.

B.

supply of labor is elastic.

C.

demand for labor is elastic.

D.

demand for labor is inelastic.

Q61. The supply of workers in a particular occupation could be relatively smallif:

A.

training costs are high.

B.

there are few people with the required skills.

C.

job features are undesirable.

D.

All of the above are correct.

Q62. Medical doctors earn higher incomes than Ph.D.s in economics. This is partlybecause:

A.

medical doctors are more likely to face malpractice lawsuits.

B.

the costs of receiving necessary medical education are higher.

C.

a relatively small number of students are admitted to medical schools.

D.

all of the above

Q63. Given their skills andknowledge, mine workers earn higher incomes than they would in another occupation. This is partlybecause:

A.

the skills required of mine workers can be acquired through costly training.

B.

mine workers have a higher risk of injury or death.

C.

few people have the skills and knowledge required for mining works.

D.

all of the above

Q64. Which of the following statements about the gender gap in income isincorrect?

A.

Women have been denied access to highpaying maledominated occupations.

B.

Women in many occupations have lessexperience, compared to men.

C.

Women are underrepresented in more lucrative majors such as computer science and engineering.

D.

none of the above

Q65. Suppose that a male police officer earns more than a female administrativeassistant, but they both have the same amount of education. The difference in wages

A.

can be attributable to the increased danger of being a police officer.

B.

will disappear once the labor market has reached equilibrium.

C.

must be due to discrimination against women among police departments.

D.

is a violation of antidiscrimination laws.