Econ 1 UCSB Final Review

At what price is there a surplus of 140 units

$13

According to diminishing marginal utility, which of the following people would gain the lowest marginal benefit from an extra $100 of income? a. Ariana, an actress with an annual household income of $1,500,000 b. Shawna, a single mother of three young children with an annual household income of $19,000 c. Devin, head of a three-person household with an annual household income of $120,000 d. Chin, a single person with an annual household income of $20,000 e. None of the answers

. Ariana, an actress with an annual household income of $1,500,000

Your landscaping company uses labor and shovels. The price of shovels falls, and this _____ your demand for labor because labor and shovels are _____. a. raises; complements b. raises; substitutes c. lowers; complements d. lowers; substitutes e. None of the answers

A. Raises, complements

And can mow the lawn in two hours Bill takes three hours to mow the same lawn. What can you conclude from this information?

Ang has an absolute advantage over Bill in mowing the lawn.

A school principal strives to motivate teachers to work hard and be effective by stressing to them satisfaction they can gain from knowing that they can have an impact for good on the next generation. The principal is using ______ to get teachers to provide students with a high quality education.

Intrinsic Motivation

Focusing on young workers, according to Marianne Bertrand, the wage gap between men and women is largely explained by which of the following? a. Employment differences b. Educational differences c. Differences in physical strength d. None of the answers e. All of the answers (except none of the answers)

None

In a monopsony labor market: a. employees bargain with market power through a union. b. employees have an advantage, due to their human capital. c. the employer is forced to pay a high wage. d. the employer uses an attractive benefit package to attract good employees. e. None of the answers

None

According to diminishing marginal utility, which of the following people would gain the highest marginal benefit from an extra $100 of income?

Seru a single father of 3 with an annual income of $19,000, person with the lowest income

Sellers bear a smaller incidence of tax when:

Supply is more elastic relative to demand

What will happen in the labor market for commercial truck drivers if the government raises the requirements needed to obtain a commercial driver's license?

The supply of truck drivers will decrease, resulting in a higher wage and lower quantity of labor.

The table shows the monthly individual demand schedules of four students for soda. What is the change in the total market demand for soda when the price changes from $1.50 per can to $2 per can?

The total quantity demanded in the market falls by 23 cans.

Juan is 80 years old. Over Juan's adult lifetime he accumulated savings for several decades and using that savings to cover his expenses in retirement. Early in life when his income was low, he borrowed funds several times to cover his expenses. Paying back loans over the next few years Juan's consumption pattern over his lifetime was influenced heavy by his:

Wealth

What will happen in the labor market if the government requires that employers pay employees higher wage for overtime hours than for regular hours?

Workers will be more willing to work additional hours.

If there is a technological advance in the production of the Amazon echo smart speaker, you would expect to see _______ overtime.

a fall in its equilibrium price

Table: Income Distribution in Four Countries provides recent data from the World Bank on the distribution of income in four countries. Based on the data, the country with the distribution of income that is closest to equal is:

a. Bangladesh. b. El Salvador. c. Mexico. d. Costa Rica. e. None of the answers a

Damon's wage rises. The substitution effect would cause him to _____ his work hours, and the income effect would cause him to _____ his work hours. a. increase; decrease b. increase; increase c. decrease; decrease d. decrease; increase e. None of the answers

a. increase; decrease

If a company incurs expenses to start providing childcare at work so that employees can have lunch with their preschool children, the company's demand curve for labor will shift to the a. left because employees are more expensive to the firm. b. right because employees are more expensive to the firm. c. left because workers will be more loyal. d. right because workers will be more loyal. e. None of the answers

a. left because employees are more expensive to the firm.

An efficiency wage improves efficiency when: a. the increase in worker effort and reduced turnover cover the cost of the higher wage. b. it is structured so that only the most productive workers receive a higher wage. c. capital costs are reduced enough to cover wage costs. d. improved technology accompanies the worker training. e. None of the answers

a. the increase in worker effort and reduced turnover cover the cost of the higher wage.

As an employer, you can minimize discrimination based on implicit bias when hiring employees if you base your hiring decisions on: a. gut feelings about the likely productivity of individual job applicants. b. carefully structured assessments of individual candidates rather than gut feelings. c. the track records of similar applicants in the past rather than full assessments of individual applicants. d. a conscious effort to hire members of a group that is discriminated against. e. None of the answers

b. carefully structured assessments of individual candidates rather than gut feelings.

If Bella uses the Rational Rule for Workers, she will keep choosing more work and less leisure until the a. value of her production equals her wage. b. marginal benefit of one more hour of leisure is equal to the wage. c. marginal cost of her work equals the value of her production. d. marginal benefit of one more hour of leisure is equal to the value of her production. e. None of the answers

b. marginal benefit of one more hour of leisure is equal to the wage.

When a minimum wage is imposed in a monopsony labor market, the _____ may not reduce the _____. a. minimum wage; number of employers b. minimum wage; number of jobs c. number of employers; minimum wage d. number of employers; product price e. None of the answers

b. minimum wage; number of jobs

When did the labor share of national income start falling? Which year is the most correct answer? a. 2009 b. 2012 c. 2002 d. None of the answers e. All of the answers (except none of the answers)

c. 2002

According to Edward Lazear, which of the following best describes the impact of increased immigration on the wages of the host country according to economic research? a. Large b. Moderate c. Negligible d. None of the answers e. All of the answers (except none of the answers)

c. Negligible

Which of the following is NOT a correct rationale about why income redistribution programs do not always reduce efficiency? a. Fewer resources may need to be devoted to dealing with crime when incomes are more equal. b. Less concentrated political power may exist when incomes are more equal. c. When incomes are more equal, work incentive grows. d. Worker productivity grows when educational opportunities are widespread. e. None of the answers

c. When incomes are more equal, work incentive grows.

When there is a high level of intergenerational mobility among the poor in a nation: a. most of the individuals who are poor remain poor. b. most of the poor have incomes that are barely below the poverty line. c. the age distribution among the poor is the same as the age distribution in the total population. d. children of poor parents do not remain in poverty when they are adults. e. None of the answers

d. children of poor parents do not remain in poverty when they are adults.

The United States has comparative disadvantage in _________ skilled labor. This explains why the US is a net__________ of high-skilled services.

low, exporter

Externalities tend to occur because decision makers consider _____ and do NOT consider _____.

their own costs and benefits, the effects of their actions on others