Economics Chapter 19 Question Answer Points Wage Will

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If the price for “bricks laid in the wall” by a bricklayer is $0.10 a brick,

the total production of bricks by the first three bricklayers is ________ bricks.

150. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If the equilibrium market wage rate for bricklayers rises from $80 to

$100, the ________ bricklayers will ________.

151. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If the equilibrium market wage for bricklayers falls from $110 to $100,

the ________ bricklayers will ________.

152. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If there is an increase in technology that increases the productivity of

bricklayers, then the value of the marginal product of the sixth bricklayer will be

________ than ________.

153. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If a shortage in the market for another factor of production that

bricklayers use lowers bricklayers‘ productivity, then the value of the marginal

product of the eighth bricklayer will be ________ than (to) ________.

154. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

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Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. If the equilibrium market wage for bricklayers is $80 per day, then this

masonry firm will hire:

155. Multiple Choice: Figure: The Demand for Bricklayers R...

Question

Points: 0

Figure: The Demand for Bricklayers

Reference: Ref 19-9

(Figure: The Demand for Bricklayers) Look at the figure The Demand for

Bricklayers. The equilibrium market wage for bricklayers is $100 a day, but there is

a new minimum wage of $120 a day for bricklayers. From this information, we can

see that:

Answer three workers who otherwise would have been employed by this firm are now

unemployed.

156. Multiple Choice: Actual wage differentials can be part…

Question Actual wage differentials can be partially explained by which of the following?

Answer differences in talent

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157. Multiple Choice: Which of the following examples of a …

Question Which of the following examples of a wage disparity is an example of compensating

differentials?

Answer Tiger Woods gets paid more than a college professor.

158. Multiple Choice: A new teacher often makes less than a…

Question A new teacher often makes less than a teacher with 20 years‘ experience because

of:

159. Multiple Choice: Which of the following does not parti...

Question Which of the following does not partially explain wage differentials?

Answer different amounts of human capital

160. Multiple Choice: A nurse willing to work the midnight ...

Question A nurse willing to work the midnight to 8 A.M. shift may make more than one who

works 8 A.M. to 4 P.M. because of:

Answer discrimination.

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161. Multiple Choice: A small college employs two economist…

Question A small college employs two economists. Rob has been employed by the college

for 15 years, and Nasrin has been employed for one year. Rob‘s salary is

significantly higher than Nasrin‘s, despite the fact that he and she both have their

doctoral degrees in economics. Each professor averages one publication per year,

and both are excellent teachers. Given this information, the wage difference is best

explained by:

Answer compensating differentials.

162. Multiple Choice: One example of a situation in which e…

Question One example of a situation in which employers can sometimes organize to pay

lower wages is when:

Answer efficiency wages are used to drive down morale and break up a labor union.

163. Multiple Choice: Unions represent approximately ______...

Question Unions represent approximately ________% of employees of private businesses.

Answer less than 1

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164. Multiple Choice: Which of the following statements abo…

Question Which of the following statements about unions is true?

Answer Laws allow unions to discriminate on the basis of gender and ethnicity.

165. Multiple Choice: An efficiency wage describes a wage r...

Question An efficiency wage describes a wage rate that is:

166. Multiple Choice: According to the efficiency wage mode…

Question According to the efficiency wage model, all of the following are correct except that:

167. Multiple Choice: Suppose Mike wants to pay efficiency ...

Question Suppose Mike wants to pay efficiency wages to help in the construction of his

beach home. If the prevailing wage rate for electricians is $22 per hour in his area,

he will probably pay which of the following amounts as an efficiency wage?

Answer $22

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168. Multiple Choice: According to the ________, workers ma...

Question According to the ________, workers may earn a wage rate higher than the value of

its marginal product because that provides an incentive to perform efficiently.

Answer marginal productivity of income distribution theory

169. Multiple Choice: One reason that wage discrimination b…

Question One reason that wage discrimination based on gender or ethnicity could continue

is:

170. Multiple Choice: Employers may be able to discriminate…

Question Employers may be able to discriminate on the basis of race or gender because:

Answer market competition makes it profitable to engage in discrimination.

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171. Multiple Choice: Scott’s wage is $25 per hour and he w…

Question Scott’s wage is $25 per hour and he works 50 hours a week, which is his optimal

labor supply. At his optimal labor supply, his marginal utility of one hour of leisure

is equal to:

172. Multiple Choice: The more work a person does, all othe…

Question The more work a person does, all other things unchanged, then the:

Answer greater his or her free time.

173. Multiple Choice: The price of an extra hour of leisure…

Question The price of an extra hour of leisure is:

Answer $1.

174. Multiple Choice: The opportunity cost of an extra hour…

Question The opportunity cost of an extra hour of leisure is:

Answer $1.

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175. Multiple Choice: A ________ wage will ________ the ___…

Question A ________ wage will ________ the ________ leisure.

Answer lower; increase; opportunity cost of

176. Multiple Choice: Gabriella often faces a trade-off bet...

Question Gabriella often faces a trade-off between time at the beach and time working as a

model. She earns $40 per hour as a model and values going to the beach at the

same price. When explaining this to her parents, she says, “The marginal utility per

hour working is the same as the marginal utility of going to the beach.” This is an

illustration of which concept?

Answer indifference curves

177. Multiple Choice: John is an entrepreneur who runs his ...

Question John is an entrepreneur who runs his own auto body repair shop. John’s business is

booming, and his salary is rising. John’s labor supply curve will be:

Answer upward sloping if the substitution effect is smaller than the income effect.

178. Multiple Choice: Eric is a professor who is paid an an...

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Question Eric is a professor who is paid an annual salary to teach at a local college.

Suppose Eric receives a promotion and an increase in his annual salary. Eric‘s

labor supply curve will be:

179. Multiple Choice: Suppose the government increases the ...

Question Suppose the government increases the child tax credit, which increases the after–

tax income of families with children. How will this decision affect the amount of

labor supplied by parents of children (assuming that leisure is a normal good)?

180. Multiple Choice: Andre Cummings, the production manage...

Question Andre Cummings, the production manager of Electric Designs, has asked his boss

for a pay raise. His boss is concerned that if he increases Andre’s salary, Andre

might work less. In other words, Andre’s boss is concerned that leisure is a normal

good for Andre and that his:

181. Multiple Choice: Tim works 51 hours per week, and his ...

Question

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Tim works 51 hours per week, and his wage is $35 per hour. If his wage increases

to $70 per hour, then:

182. Multiple Choice: Lisa works 46 hours a week at a wage ...

Question Lisa works 46 hours a week at a wage of $10 an hour. If her wage increases to

$16.50, then:

183. Multiple Choice: Lakisha‘s labor supply curve is downw…

Question Lakisha‘s labor supply curve is downward sloping for wage rates greater than $40

per hour and upward sloping for wage rates less than $40 per hour. If leisure is a

normal good for Lakisha, then:

184. Multiple Choice: Which of the following statements is …

Question Which of the following statements is true?

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185. Multiple Choice: The ________ effect of a ________ wag…

Question The ________ effect of a ________ wage causes individuals to substitute

________.

186. Multiple Choice: A wage ________ raises the quantity o...

Question A wage ________ raises the quantity of labor supplied through the ________ effect.

187. Multiple Choice: A higher wage ________ the price of _...

Question A higher wage ________ the price of ________ and ________ workers‘ incomes.

The result of these two changes pulls the quantity of labor supplied in ________

direction(s).

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188. Multiple Choice: Assume that Stan just received a prom...

Question Assume that Stan just received a promotion and raise. In terms of labor supply, the

substitution effect of a higher wage will:

189. Multiple Choice: In terms of labor supply, the income ...

Question In terms of labor supply, the income effect of a higher wage causes a(n):

190. Multiple Choice: A backward-bending supply curve of la...

Question A backward-bending supply curve of labor shows that at relatively low wages the:

191. Multiple Choice: A backward-bending supply curve of la...

Question A backward-bending supply curve of labor shows that at relatively high wages the:

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192. Multiple Choice: The ________ effect of a ________ wag…

Question The ________ effect of a ________ wage causes individuals to substitute

________.

193. Multiple Choice: A lower wage:

Question A lower wage:

194. Multiple Choice: A wage ________ reduces the quantity ...

Question A wage ________ reduces the quantity of labor supplied through the ________

effect.

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195. Multiple Choice: The trade-off between work and leisur…

Question The trade-off between work and leisure underlying the supply of labor involves the

substitution effect and the:

196. Multiple Choice: The trade-off between work and leisur…

Question The trade-off between work and leisure underlying the supply of labor involves the

income effect and the:

197. Multiple Choice: In terms of labor supply, the substit…

Question In terms of labor supply, the substitution effect of a higher wage causes a(n):

Answer increase in leisure time.

198. Multiple Choice: In terms of labor supply, the substit…

Question In terms of labor supply, the substitution effect of a higher wage causes which of

the following?

Answer

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