December 2020

In which of the following market structures is the firm not a price taker in the factor market? a. Oligopoly b. Monopsony c. Monopoly d. Perfect competition

The extra cost of obtaining each additional unit of a factor of production is called the marginal a. physical product. b. revenue product. c. factor cost. d. implicit cost.

To maximize profits, a monopsonist will hire the quantity of labor to the point where the marginal factor cost is equal to a. marginal physical product. b. marginal revenue product. c. total revenue product. d. any of the above. Q409: BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To

A monopsonist in equilibrium has a marginal revenue product of $10 per worker hour. Its equilibrium wage rate must be a. less than $10. b. equal to $10. c. greater than $10. d. equal to $5.

If the labor market shown in Exhibit 12 is amonopsony, the wage rate and number of workers employed will be determined at point a. A. b. W. c. C. d. Y. e. Z.

The current approach to welfare reform is to cut the growth of welfare by shifting control from the federal government to the states. The idea is that because state and local officials are closer to the people, welfare programs will improve. Analyze the results presented above based on work disincentives, inefficiencies, and inequities.

Suppose consultants use a job-scoring system and determine that the wage rate for a secretary is $50 per hour, while the competitive labor market wage rate is $10 per hour. What would be the effect of such a comparable worth law? a. Compute the cumulative distribution of income for each country. b. Construct the Lorenz

Suppose each family in the United States earned an equal money income. What would be the effect?  Explain the difference between poverty defined absolutely and poverty defined relatively. Which definition is the basis of the poverty line?

Which of the following statements is true?a. All people in poverty are on welfare. b. Unemployment compensation is an in-kind transfer. c. Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished. d. After cash assistance and in-kind transfers are considered, the distribution of income in

Which of the following statements is true? a. Discrimination against women and blacks reduces the demand for these workers, resulting in lower wages paid these workers. b. Discrimination is no longer a problem in the United States. c. A negative income tax system is a plan in which everyone pays the same percentage of their income