Question 1

Despite their fantastic employment gains,African American men earn ____% of what white men earn.

Accepted Answer

A)  65
B)  55
C)  60
D)  75

Question 2

The substitution effect is basically a trade-off between

Accepted Answer

A)  work time and leisure time.
B)  the primary labor market and the secondary labor market.
C)  years of education and level of income.
D)  homogeneous jobs and non-homogeneous jobs.

Question 3

In 1993,the base year,you were earning $400/week.Your wages rose to $550 in 2001,the current year,when the Consumer Price Index stood at 137.5.What statement can you make about what happened to your real wages over this period?

Accepted Answer

A)  They rose.
B)  They fell.
C)  They remained the same.
D)  There is not enough information to determine whether they rose,fell,or remained the same.

Question 4

Who is most likely to be earning economic rent?

Accepted Answer

A)  A tenant farmer
B)  A factory worker
C)  David Letterman
D)  An IRS agent

Question 5

Among these countries,which has the lowest hourly wage and fringe benefits in manufacturing?

Accepted Answer

A)  Germany
B)  Britain
C)  Canada
D)  United States

Question 6

Today the great divide between the haves and have-nots is a _______________.

Accepted Answer

The answer of Today the great divide between the haves...

Question 7

Chief executive officers of large American corporations earn on average about ________ times the salary of the average production worker.

Accepted Answer

The answer of Chief executive officers of large American corporations...

Question 8

Mr.Retchnik was paid $500 a week in 1988,the base year.By 1994 he was earning $700.If the CPI was at 140 in 1994,how much were Mr.Retchnik's real wages in that year and by what percentage had they changed?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> There is no change ...

Question 9

Economic rent is generally associated with

Accepted Answer

A)  high wages.
B)  low wages.
C)  both high and low wages.
D)  neither high nor low wages.

Question 10

-An increase in the minimum wage to $7 would cause ____ million people to lose their jobs.

Accepted Answer

The answer of 
-An increase in the minimum wage to...

Question 11

Conservative economists would like to help younger workers get work experience by

Accepted Answer

A)  setting up a government jobs program.
B)  raising the minimum wage rate.
C)  lowering the minimum wage rate.
D)  passing a law requiring employers to hire teenagers ahead of older workers who are equally qualifieD.

Question 12

Real wages have fallen in the U.S.since 1973 for which of the following reasons?

Accepted Answer

A)  Productivity growth slowed down during this period.
B)  American factories were closing left and right as our relatively high-paying manufacturing jobs went to other countries.
C)  The decline in the percentage of better-paid,unionized workers in the United States.
D)  All of the choices are correct.

Question 13

Each of these statements is true except

Accepted Answer

A)  only a few million workers earn just the minimum wage.
B)  about a dozen states have minimum wage rates above the federal level.
C)  real wages are higher today than any time in our history.
D)  about one quarter of all workers do not earn enough to support their families.

Question 14

The wage rate is determined by

Accepted Answer

A)  the interaction of supply and demand in the market.
B)  the substitution and income effects of supply.
C)  the U.S.government in all circumstances.
D)  None of the choices are correct.

Question 15

If the legal minimum wage rate is set at $1/hour instead of at the equilibrium rate,

Accepted Answer

A)  employment for inexperienced and marginal workers will tend to fall.
B)  employment of inexperienced and marginal workers will tend to rise.
C)  employment of inexperienced and marginal workers will not be affected.
D)  there is no way to determine how the employment of inexperienced and marginal workers would be affected.

Question 16

Whenever a person gets paid more than the minimum she would be willing to accept,we call that excess over the minimum _________.

Accepted Answer

The answer of Whenever a person gets paid more than...

Question 17

The federal minimum wage rate was last raised in the year _________.

Accepted Answer

The answer of The federal minimum wage rate was last...

Question 18

Statement I: In the U.S. ,the CEOs of large corporations earn more than 400 times the salary of the average American production worker.
Statement II: The U.S.has lower hourly wages in its manufacturing sector than those in Germany,Norway,and Canada.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 19

The minimum wage is a price ____,which tends to ___ the employment of unskilled workers.

Accepted Answer

A)  ceiling;decrease
B)  ceiling;increase
C)  floor;decrease
D)  floor;increase

Question 20

Suppose your economics professor earns an equal annual salary of $40,000.The professor loves teaching and would not quit her job if her pay were reduced to $15,000 per year.Your professor is earning annual economic rent of

Accepted Answer

A)  $40,000.
B)  $25,000.
C)  $55,000.
D)  $15,000.

Exam 28: Labor Markets and Wage Rates

Mr.Retchnik was paid $500 a week in 1988,the base year.By 1994 he was earning $700.If the CPI was at 140 in 1994,how much were Mr.Retchnik's real wages in that year and by what percentage had they changed?

Correct Answerverified There is no change ...View AnswerShow Answer

Statement I: In the U.S. ,the CEOs of large corporations earn more than 400 times the salary of the average American production worker. Statement II: The U.S.has lower hourly wages in its manufacturing sector than those in Germany,Norway,and Canada.

Correct AnswerverifiedShow Answer

Among these countries,which has the lowest hourly wage and fringe benefits in manufacturing?

Correct AnswerverifiedShow Answer

The wage rate is determined by

Correct AnswerverifiedShow Answer

The federal minimum wage rate was last raised in the year _________.

Correct AnswerverifiedShow Answer

Whenever a person gets paid more than the minimum she would be willing to accept,we call that excess over the minimum _________.

Correct AnswerverifiedShow Answer

Chief executive officers of large American corporations earn on average about ________ times the salary of the average production worker.

Correct AnswerverifiedShow Answer

The substitution effect is basically a trade-off between

Correct AnswerverifiedShow Answer

-An increase in the minimum wage to $7 would cause ____ million people to lose their jobs.

Correct AnswerverifiedShow Answer

Today the great divide between the haves and have-nots is a _______________.

Correct AnswerverifiedShow Answer

Economic rent is generally associated with

Correct AnswerverifiedShow Answer

If the legal minimum wage rate is set at $1/hour instead of at the equilibrium rate,

Correct AnswerverifiedShow Answer

The minimum wage is a price ____,which tends to ___ the employment of unskilled workers.

Correct AnswerverifiedShow Answer

Each of these statements is true except

Correct AnswerverifiedShow Answer

Conservative economists would like to help younger workers get work experience by

Correct AnswerverifiedShow Answer

Suppose your economics professor earns an equal annual salary of $40,000.The professor loves teaching and would not quit her job if her pay were reduced to $15,000 per year.Your professor is earning annual economic rent of

Correct AnswerverifiedShow Answer

Real wages have fallen in the U.S.since 1973 for which of the following reasons?

Correct AnswerverifiedShow Answer

Who is most likely to be earning economic rent?

Correct AnswerverifiedShow Answer

Despite their fantastic employment gains,African American men earn ____% of what white men earn.

Correct AnswerverifiedShow Answer

In 1993,the base year,you were earning $400/week.Your wages rose to $550 in 2001,the current year,when the Consumer Price Index stood at 137.5.What statement can you make about what happened to your real wages over this period?

Correct AnswerverifiedShow Answer

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The minimum wage is a price __,which tends to _ the employment of unskilled workers.

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