Microeconomics tests 3

A signal is: a. an action is taken to credibly convey information that is hard for someone else to verify b. advance notice of an action that will be taken in the future c. a price tag d. an indicator of the equilibrium wage and quantity in a market

A

Am employers labor demand curve is equal to the a. marginal revenue product curve b. marginal product curve c. marginal revenue curve d. rational product curve

A

An efficiency wage improves efficiency when: a. the increase in worker effect 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 in training

A

In a labor market, workers ____ labor, and employers _______ labor. a. supply; demand b. demand; supply c. hire; use d. use; hire

A

The _________ measures how people respond to a change in relative prices when the wage rises. a. the substitution effect b. income effect c. opportunity cost d. marginal benefit

A

The accumulated knowledge and skills that make a worker more productive are known as: a. human capital b labor enhancing c. labor factoring efficiency investment

A

There is evidence that, despite anti-discrimination laws, discrimination _______ in labor markets. a. impacts wages b. exists but has no impact c. benefits groups that are discriminated against d. accounts for all differences in wages across groups of workers

A

When someone can enjoy the benefits of a good without bearing the cost, the good: a. is subject to the free-rider problem b. is excludable and nonrival c. is a nonmarket good d. is attractive to manufacturers

A

With a ____ number of sellers in a market, _____ market power tends to exits in the market a. smaller; more b. small; less consistent c. greater; more greater; less consistent

A

With a _____ number of sellers in a market, _____ market power tends to exist in the market. a.smaller; more b.smaller; less consistent c.greater; more d.greater; less consistent

A

A corrective tax designed to resolve a negative externality problem is typically set at an amount equal to the _____ cost. a.marginal social b.marginal external c.total externality d.total social

B

An efficiency wage is NOT _______- but rather ___________. a. a variable wage; a rewARD B. a reward; an incentive c. am incentive; a fixed wage d. a fixed wage; variable wage

B

In a market, when a company's owner tries to make its product slightly different from the output of other companies so that it is more attractive to buyers, the company is engaged in a.market fixation. b.product differentiation. c.dominant rivalry. d.rational competition.

B

Marginal revenue product is the a. change in revenue from selling an extra item b. marginal revenue from hiring an additional worker c. extra product produced from spending marginal revenue on inputs d. change in revenue from the total production

B

What type of relationship exists between the level of a company's market power and the price that its owner is able to charge for its product? a.circular b.positive c.negative d.opposing

B

When a company has market power, it is _____ in its market. a.one of many small companies b.not a price-taker c.a producer of non-differentiated products d.not able to impact the market equilibrium price

B

When a company has market power, it is _______ in its market. a. one of many small companies b. not a price-taker c. a producer of non-differentiated products d. not able to impact the market equilibrium price

B

When the income effect dominates, an individual's labor supply curve a.slopes upward. b.slopes downward. c.is horizontal. d.is vertical.

B

Which of the following is consistent with current U.S. law on monopolies? a.Being a monopoly is illegal. b.Gaining monopoly or market power through specified exclusionary business practices is illegal. c.Monopolizing is legal. d.Companies can act to reduce the number of competitors but cannot discourage new entrants.

B

A characteristic of oligopoly that is not present in any other market structure is that there a.is only one seller and that seller has a high level of market power. b.are many sellers and each produces its own version of the product. c.are a small number of sellers with considerable market power. d.are many sellers that produce identical products.

C

A characteristic of oligopoly that is not present in any other market structure is that there: a. is only one seller and that seller has a high level of market power b. are many sellers and each produces its own version of the product c. are a small number of sellers with considerable market power d. are many sellers that produce identical products

C

A compensating differential is an: a. adjustment to wages that compensates for lost work due to robotics b. adjustment to work hours that allows low-wage employees to earn more c. difference in wages that offsets the desirable or undesirable aspects of a job d. difference in wages that adjusts for differences in worker productivity

C

A tax designed to induce people to take account of the negative externalities that they cause is referred to as ___ tax. a. an externality b. an open offset c. a corrective d. compensatory

C

An employer should hire one more worker if: a. the total benefit exceeds the total cost. b. the marginal cost is falling c. the marginal benefit exceeds the marginal cost d. demand is rising

C

An externality is defined as: a. the effect of an activity undertaken outside a building rather than inside a building b. an effect of market activity that impacts the opposite side of the market from the side whose decision caused effect c. a side-effect of an activity that affects bystanders whose interests are not taken into account d. the impact of an activity on buyers and sellers in the market where the activity takes place

C

In a natural monopoly, what deters new sellers from entering the market? a. the existing seller has higher costs and profits than what the new entrant will face b. Marginal revenue will be higher for new entrants, making profits less probable c. The new sellers would have much higher costs than the existing larger seller in the market d. The existing monopolists have long-term contracts with buyers

C

In which market structure do the actions of a rival have a significant impact on your operations? a.Monopoly b.Monopolistic competition c.Oligopoly d.Perfect competition

C

Marginal social cost equals marginal _______ cost plus marginal ______ cost. a. Consumer; production b. government; private c. private; external d. public; internal

C

Th marginal private benefit plus the marginal external benefit equals the _______ benefit. a. total public b. total externality c. marginal social d. marginal public

C

The government increases the training requirement to obtain an electrician's license. What impact will this have on the labor market for electricians a. the demand for electricians will increase, resulting in a, lower wage and lower quantity of labor b. The demand for electricians will increase, resulting in a higher wage and higher quantity c the supply of electricians will decrease, resulting in a higher wage and lower quantity of labor d. the supply of electricians will decrease, resulting in a lower wage and a high quantity

C

The labor demand is a/n __________ demand. a. modified b. imputed c. derived d. inferred

C

The marginal private benefit curve is also the: a. supply curve b. marginal external benefit minus the marginal social benefit c. demand curve d. marginal personal benefit curve

C

The market power of a firm is its a.ranking based on units sold compared to other firms selling the same product. b.ability to cause other firms in its market to drop out of the market. c.ability to raise its price without losing many of its customers to competing businesses. d.market share based on the percentage of total market revenue.

C

The supply curve of a firm is also its _______ cost curve. a. average b. social c. marginal private d. marginal external

C

Walmart has a large aisle that displays many different types of shampoos. This observation indicates that the shampoo market is a.a perfectly competitive market. b.a monopoly. c.an oligopoly. d.a monopolistically competitive market.

C

When making labor supply decisions, your options are a. working or doing homework b. working, shopping or relaxing c. working or leisure d. working, sleeping, leisure

C

Which of the following is an example of statistical discrimination? a. no companies will hire Marcella because they do not want to hire women b. Arturo is unaware that he avoids hiring Asians c. An employer relies on stereotypes in making hiring decisions d. Ingrid refuses to hire people who do not have at least 5 years of experience in their previous jobs

C

Workers on the night shift at a factory earn more per hour than workers on the day shift, although their human capital and productivity are the same. This is an example of: a. discrimination based on time preferences b. irrational decision making by an employer c. a compensating differential d. efficiency investment

C

Companies with market power face a trade-off between a.gaining market share and reducing costs. b.having a higher marginal cost and a reduction in output. c.reducing costs and increasing profit. d.having a higher profit margin and selling a larger quantity.

D

Imperfect competition stems from _____ and whether or not the product is _____. a.the product price; produced by all firms in the market b.the costs of production; identical across firms c.market power; a good or a service d.the number of sellers; differentiated

D

Marginal revenue product of labor is equal to: a. MP^L + P b. MR x Wage c. MR + Wage d. MP^L x P

D

When a good is nonrival and nonexcludable, the good is referred to as: a. free ride benefit good b. external good c. a private good d. public good

D

When a seller is able to differentiate its product successfully, the seller a.has a reduction in costs of production. b.takes its market closer to perfect competition. c.loses market share. d.gains market power.

D

When a seller is able to differentiate its product successfully, the seller: a. has a reduction in costs of production b. takes it's market closer to perfection competition c. loses market share d. loses market power

D

Which of the following is an example of a labor market characterized by compensating differentials? a.A nursery school teacher earns less than a university professor. b.Two real estate agents paid on commission earn different salaries due to different listings and sales volumes. c.Adjustments are made to the salaries of teachers in different states to equalize the purchasing power of income. d.Outside window washers of skyscrapers earn higher salaries than outside window washers of single family homes.

D

Which of the following is the amount of a corrective tax that would resolve a negative externality problem? a. the marginal social cost b. the total social cost c. the total external cost d. the marginal external cost

D

The marginal product of labor is the: a. amount of extra worker time it takes to produce one extra unit of output b. change in output from the slowest worker to the most productive c. extra output produced by all the firm's employees d. extra production that occurs from hiring an extra worker

d