Chapter 28 Flashcards
Today a college graduate earns about $_____ while a high school graduate earns about $_______.
B. $51,000; $28,000
Which statement is true?
A. american manufacturing wages are the highest in the world.
B. American manufacturing wage rates are the lowest of any industrial country.
C. Our manufacturing wage rates are the second highest in the world.
D. Both statements are true
D. None statements are true.
Which statement is false?
A. The substitution effect means that you trade away leisure time for more money.
B. The income effect means that you trade away some money for more leisure time.
C. Both statements are true.
C. Both statements are true.
In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make about what happened to your real wages over this period?
B. They fell.
Teh backward-bending labor supply curve includes each of these variables except
C. the savings effect
A firm’s demand for labor is
A. the MRP schedule
If Jason were offered a job as an accountant at $30,000 and a job as a running back for the Oakland Raiders at $300,000, and he would have been willing to accept the latter even if it paid as little as $50,000, he would be receiving economic rent of
C. $250,000
An effective minimum wage is
A. Above the equilibrium level
Which statement is true about incomes in the United States?
A. Almost everyone earns about the same income.
B. Almost everyone is either very rich or very poor.
C. There is a wide disparity of income.
D. None of these statements is true.
C. There is a wide disparity of income.
Some conservative economists want to help more teenagers to find jobs by
C. Lowering the minimum wager rate for teenagers
Which statement is false?
A. A firm’s marginal revenue product curve for labor is its demand curve for labor.
B. Most desirable jobs are in the primary labor market
C. Virtually no one today earns economic rent.
D. None of these statements is false.
C. Virtually no one today earns economic rent.
The amount a person earns over and above the amount she/he would be willing to work for is called
B. Economic rent
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
B. $25,000
According to the theory of the backward-bending labor supply curve, as the wage rate rises,
A. first the substitution effect sets in, and then the income effect.
The possibility of earning economic rent is great if
B. the demand of a factor is very high relative to supply.
If you are earning $20,000 a year today and you were to earn $40,000 a year in 10 years.
D. Your money wages will have increased
Which statement is true?
A. The higest paid professional athletes earn economic rent.
B. Economic rent is paid on land, but not in the form of wages.
C. Economic rent is earned mainly by the poor and the lower middle class
D. Economic rent is paid in proportion to the marginal revenue product of a resource.
E. None of the statements is true
A. The higest paid professional athletes earn economic rent.
Who is most likely to be earning economic rent?
D. A major league baseball player
Conservative economists would like to help younger workers get work experience by
C. lowering the minimum wager rate
If the legal minimum wage rate were set at $15 hour,
A. employment would decline substatnially
AN increse in the demand for electricians will
D. have no effect on economic rent earned by electricians
Compared to real wages in 1973, today they are about
B. 9% lower
Amoung these countries, which has the highest hourly wage and fringe benefits in manufacturing?
A. Germany
Traditionally our society got its dirty work done by
A. forcing oppressed minorities to do it
B. Paying people higher wages to do it
C. All of the choices are correct
C. All of the choices are correct
Economic rent is generally associated with
A. High wages
