CHAPTER 19
Inequality, Exploitation, and Economic Institutions
MULTIPLE CHOICE
146. Suppose Lisa works an 8 hour day copyediting books at a wage of $10. During that time
she adds $160 to the value of the books sold in the market.
a. Profits are equal to $160 per day.
b. Profits are equal to $150 per day.
c. Profits are equal to $80 per day.
d. Profits are equal to $10 per day.
147. Suppose Paul works as a programmer at a salary of $300 per day. During that time he
produces programs that are sold for $600.
a. Profits are $600 per day.
b. Profits are $300 per day.
c. Profits are $1800 per day.
d. Profits are $900 per day.
148. Susan earns $100 per day in wages for an 8 hour day. Her employer earns $100 per day in
profits.
a. Necessary labor time is equal to 8 hours.
b. Surplus labor time is equal to 8 hours.
c. Necessary labor time is 4 hours and surplus labor time is 4 hours.
d. Necessary labor time cannot be determined from the information give.
149. Progressive economists define the rate of exploitation as
a. the wage rate.
b. the profit rate.
c. the difference between profits and wages.
d. the ratio of profit to wages.
150. Alfred earns $6 per hour and works an 8 hour day. He produces a product during that time
that sells for $96. What is the rate of exploitation?
a. 0.4
b. 0.8
c. 1.0
d. 1.8
151. According to the text, there are about 3 hours of surplus labor a day and 5 hours of
necessary labor. What is the rate of exploitation according to this data?
a. 3.0
b. 1.6
c. 1.0
d. 0.6
152. A wage floor in any society is equal to
a. the federal minimum wage.
b. the subsistence wage.
c. the wage earned by necessary labor.
d. the wage earned by surplus labor.
153. The AFL-CIO is a voluntary assocation of national and international labor unions. What
does AFL stand for in the name, AFL-CIO?
a. American Football League
b. American Federation of Labor
c. Arena Football League
d. American Fraternity of Labor
154. A wage ceiling in any society is equal to
a. a wage with no surplus labor.
b. the subsistence wage.
c. the wage earned by necessary labor.
d. the wage earned by surplus labor.
155. In the classic film, Modern Times, Charlie Chaplin works on an assembly line that
continues to move faster and faster, and Charlie struggles harder and harder to keep up. This
film demonstrates the problem of
a. labor intensity
b. exploitation
c. monopsony
d. appropriation