question
According to international comparisons, which nation had the highest hourly pay in US dollar terms 2011?
answer
Sweden
question
If a firm is hiring a certain type of labor under purely competitive conditions
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the labor supply and marginal labor (resource) cost curves will coincide and be perfectly elastic
question
In monopsomy
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the wage rate paid by the employer varies directly with the number of workers employed
question
If a firm faces an upsloping curve (and there is no union or minimum wage) its:
answer
MRC curve is also upsloping
question
Other things equal, the monopsonistic employer will pay a:
answer
lower wage rate and hire fewer workers than will a purely competitive employer
question
Which of the following tactics is most associated with the demand-enhancement union model?
answer
Lobbying for increase in public expenditures on the product it is producing.
question
If an exclusive union is successful in restricting the supply of labor, the:
answer
wage rate will rise
question
According to age-earnings data
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investments in education result in higher earnings
question
Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
answer
discrimination
question
Jack and Jill have identical skills and training, but Jill earns higher wages in her job. Which of the following reasons would best explain why Jill earns more than Jack?
answer
Jack has a chronic illness and would lose health care coverage if he changed jobs
question
Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer. This is an example of
answer
Shirking
question
For the firm, the major goal of profit sharing is to:
answer
overcome the principal-agent problem by better aligning the worker's interests with those of the firm
question
The story about artist Pablo Picasso illustrates the point that
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present skills reflect past accumulations of human capital
question
Which of the following research findings is most consistent with the hypothesis that unions increase productivity?
answer
Labor turnover is less in unionized firms that in nonunionized firms
question
The incentive function of prices
answer
indicates that price increases bring forth more of that resource
question
The rent paid for the pasture land used to graze cattle would increase if
answer
any of these occurred (probability of land increased, people decided to consume more beef, oil deposits were discovered on land)
question
Henry George advocated a single tax on
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land
question
Interest is the
answer
price paid for the use of money
question
which of the following is correct?
answer
real capital is a resource, but money is not.
question
Which of the following is not a component of the demand for loanable funds?
answer
household saving
question
The "time-value of money" refers to the fact that:
answer
a given amount of money is more valuable the sooner it is obtained
question
On January 1, 2012, Alex deposited $5,000 into a savings account that pays interest of 5 percent, compounded annually. If he makes no further deposits or withdrawals, how much will alex have in his account on December 31, 2012 (3 years later)?
answer
$5,788
question
If Kelly deposits $10,000 into an account that pays 8 percent interest, compounded annually, adn she makes no further deposits or withdrawals, how much will Kelly have in her account at the end of 5 years?
answer
$14,693
question
The "Future Value" of a sum of money refers to:
answer
the amount to which some current sum of money will grow over time
question
the pure rate of interest is approximated by the:
answer
rate paid on long-term government bonds
question
The real interest rate can be estimated by:
answer
subtracting the rate of inflation from the nominal interest rate
question
Economic profit is most closely associated with
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monopoly, innovation, and uninsurable risks
question
The largest single share of all income earned by Americans consists of:
answer
wages and salaries
question
The United States' most important trading partner quantitatively is
answer
Canada
question
In the theory of comparative advantage, a good should be produced in that nation where
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its cost is least in terms of alternative goods that might otherwise be produced
question
The primary gains from international trade is
answer
more goods than would be attainable through domestic production alone
question
The impact of increasing, as opposed to constant costs is to
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cause the bases for further specialization to disappear as nations specialize according to comparative advantage
question
In the real world, specialization is rarely complete because
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nations normally experience increasing opportunity costs in producing more of the product in which they are specializing
question
Suppose the domestic price (no-intenational-trade price) of copper is $1.20 a pound in the United States while the world price is $1.00 a pound. Assuming no transportation costs, the united states will
answer
import copper
question
suppose the domestic price (no international trade price) of wheat is $3.50 a bushel in the united states while the world price is $4.00 per bushel. Assuming no transportation costs, the united states will
answer
export wheat
question
A nation will neither export nor import a specific product when its
answer
domestic price equals world price
question
Tariffs
answer
may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers fro foreign competition (protective tariffs)
question
An excise tax on an imported good that is not produced domestically is called a
answer
revenue tariff
question
In the past, Canada has agreed to set an upper limit on the total amount of softwood lumber sold in the united states. This is an example of a
answer
voluntary export restriction
question
Suppose the United States sets limit on the number of tons of sugar that can be imported each year. This is an example of
answer
import quota
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a protective tariff will
answer
increase the price and sales of domestic producers
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