ECO2023 MICROECO QUIZ 11 & 12

When an individual labor supply curve bends backward, this means that the:

income effect is stronger than the substitution effect.

People who believe that success in one's career depends largely on one's innate intellect and work ethic would argue that a college education:

is useful to the extent that it allows people to signal their natural talents.

The main advantage of issuing stock to raise financial capital is:

limited liability of risk

As one progresses through his or her working life, the average income tends to _____, holding the level of education constant.

rise then fall

Which of these is NOT an example of an intellectual property right?

the name of a famous basketball player

Brett won a scholarship competition that will award him with $1,000 today and another $1,000 next year. What is the present value of the scholarship money if the interest rate is 10%?

$1,909

Jeff owns a small business installing home security systems priced at $1,000 each. By himself, he can install four systems per month. If he hires an assistant, a total of ten systems can be installed. If he hires two assistants, a total of fifteen systems can be installed. Assuming that the price stays the same, what is the marginal revenue product of the first assistant; and the marginal revenue product of the second assistant?

$6,000; $5,000

Which factor would shift the market labor supply curve to the right?

a reduction in nonwage income

Jack works for a large lumber company. Although he chose not to join the union for personal reasons, he is still required to pay union dues. Jack's company is represented by which form of union?

agency shop

Which of these is most likely to decrease the demand for labor in the nursing industry?

an increase in Web-based medical services that allow patients to self-diagnose minor illnesses

Innovation leads to all of these EXCEPT:

an increase in the inherent amount of land and natural resources available.

Which financial instrument is strictly an IOU?

corporate bond

If the supply of loanable funds increases, the marginal revenue product of capital (MRPK) that would be needed in order to break even would:

fall

Unions tend to _____ wage differentials between a union and non-union sector by _____ entry into union-sector jobs.

increase; restricting

In which industry or sector are unions most prominent?

manufacturing sector

Which of these describes a labor market in which most of a small town's workers are employed by one large company?

monopsony

Which labor supply curves will bend backward at high wages?

only the individual labor supply curve

If a company is on the verge of bankruptcy and has lost its ability to issue bonds or stock due to a lack of confidence by investors, which source of financial capital might still be available?

private equity funding

What would happen to wages and labor if worker safely regulations were abolished, making work conditions more dangerous?

wages would rise and labor quantity would fall

Which situation is least likely to be an example of labor discrimination?

women earning less money in a career that offers flexible work hours