Economics 28 Flashcards
Today a college graduate earns about $_____________ while a high school graduate earns about $__________
- 74,000; 18,000
- 51,000; 28,000
- 51,000 ;18,000
- 74,000: 28,000
51,000; 28,000
Which statement is true?
- American manufacturing wages are the highest in the world
- American manufacturing wage rates are the lowest of any industrial country
- Our manufacturing wage rates are the second highest in the world
- None of the statements are true
None of the statements are true
- Which statement is false?
- The subsitution effect means that you trade away leisure time for more money
- The income effect means that you trade away some money for more leisure time
- Both statements are true.
Both statements are true
In 1991 the base year you were earning $350.00 a week. Your wages rose to $450.00 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.
- They rose
- They fell
- They remained the same
- There is not enough information to determine whether they rose, fell or remained the same
They fell
The backward-bending labor supply curve includes each of these variables except
- the income effect
- the substitution effect
- the savings effect
the savings effect
A firm’s demand for labor is:
- its MRP schedule
- determined by the going wage rate
- shaped mainly by the supply of labor
Its 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
- 30,000
- 40,000
- 250,000
- 300,000
250,000
An effective minium wage is set
- above the equilibrium level
- below the equilibrium level
- at the equilibrium level
above the equilibrium level
Which statement is true about incomes in the United States?
- almost everyone earns about the same income
- almost everyone is either very rich or very poor
- There is a wide disparity of income
- None of these statements is true
There is a wide disparity of income
Some conservative economists want to help more teenagers find jobs by
- providing a government jobs program
- raising the minimum wage rate for teenagers
- requiring every business with more than 25 employees to hire at least one teenager for each three new employees hired.
lowering the minumum wage rate for teenagers
Which statement is true?
- A firm’s marginal revenue product curve for labor is its demand curve
- Most desirable jobs are in the primary labor market
- Virtually no one today earns economic rent
- None of these statements is false
Virtually no one today earns economic rent
The amount a person earns over and aboveo the amount she/he would be willing to work for is called:
- marginal resource cost
- economic rent
- marginal revenue product
- profit on human capital
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
- 40,000
- 25,000
- 55,000
- 15,000
25,000
According to the theory of the backward-bending labor supply curve, as the wage rate rises.
- first the subsitution effect sets in, and then the income effect.
- first the income effect sets in and then the subsitution effect
- the substitution effect and the income effect set in at the same time
- there is neither a subsitution effect nor an income effect
first the subsitution effect sets in, and then the income effect
The possibility of earninng economic rent is great if
- the supply of a factor is very high relative to demand
- the demand of a factor is very high relative to supply
- both demand for a factor and suppy of a factor are high
- both demand for a factor and supply of a factor are low.
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
- your real wages and money wages will both have increased
- your real wages and money wages will both have decreased
- your real wages will have increased
- your money wages will have increased
your money wages will have increased
Which statement is true?
- The highest paid professional athletes earn economic rent
- Economic rent is paid on land but not in the form of wages
- Economic rent is earned mainly by the poor and the lower middle class
- Economic rent is paid in porportion to the marginal revenue product of a resource
- None of the statements is true
The highest paid professional atheltes earn economic rent.
Who is most likely to be earning economic rent?
- A landlord
- A postal employee
- someone who lives in a rental apartment
- A major league baseball player
A major league baseball player
Conservative economists would like to help younger workers get work experience by
- setting up a government jobs program
- raising the minimum wage rate
- lowering the minimum wage rate
- passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.
lowering the minimum wage rate
If the legal minimum wage rate were set a $15.00 hour
- employment would decline substantially
- employment would decline slightly
- employment would not be affected
- employment would rise slightly
- employment would rise substantially
employment would decline substantially
An increase in the demand for electricians will
- increase economic rent earned by electricians
- decrease the supply of electricians
- decrease the economic rent earned by electricians
- have no effect on economic rent earned by electricians
increase economic rent earned by electricians
Compared to real wages in 1973 today they are about
- 17% lower
- 9% lower
- the same
- 9% higher
- 17% higher
9% lower
Among these countries, which as the highest hourly wage and fringe benefits from manufacturing?
- Germany
- Japan
- The US
- Canada
Germany
Traditionaly our society got its dirty work done by
- forcing oppressed minorities to do it
- paying people higher wages to do it
- All of the choices are correct
all the choices are correct
