Micro Test 5

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nikkid080
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301284
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Micro Test 5
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2015-04-22 01:18:50
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test 5 micro
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  1. The increase in firm's total revenue resulting from hiring an additional unit of labor or other variable resource. Dollar value of worker productivity.
    Marginal Revenue Product (MRP)
  2. A curve showing the different quantities of labor employers are willing to hire at different wage rates in a given time period, ceteris paribus. It is equal to the marginal revenue product of labor.
    Demand curve for labor
  3. The demand for labor and other factors of production that depends on the consumer demand for the final goods and services the factors produce.
    Derived Demand
  4. A curve showing the different quantities of labor workers are willing to offer employers at different wage rates in a given time period, ceteris paribus.
    Supply curve of labor
  5. The accumulation of education, training, experience, and health that enables a worker to enter an occupation and be productive.
    Human capital
  6. What are the three ways to increase wages for Union members.
    • a) collective bargaining
    • b) feather bedding 
    • c) lobbying for legislation to reduce immigration
  7. The union forces firms to hire more workers than are required or to impose work rules that reduce output per worker.
    Featherbedding
  8. The process of negotiating labor contracts between the union and management concerning wages and working conditions.
    Collective bargaining
  9. Alan Jones owns a company that sells life insurance. When he employs 10 salespersons, his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000. The marginal revenue product of the 11th salesperson is
    a) $410,000
    b) $10,000
    c) $20,000
    d) $210,000
    b) $10,000
  10. The demand for labor is
    a) derived demand
    b) featherbedding demand
    c) marginal utility demand
    d) all of the above
    a) derived demand
  11. If product price increases, then
    a) MP will increase
    b) MFC will increase
    c) MRP will increase
    d) MP will increase
    c) MRP will increase
  12. Which of the following statements is true?
    a) Derived demand for labor depends on the demand for the product labor produces.
    b) Unions can either increase demand or decrease the supply of labor
    c) Investment in human capital is expected to increase the demand for those workers
    d) All of the above
    d) All of the above
  13. The optimal hiring rule is to employ labor up to the point where
    a) wage = MFC
    b) wage = MP
    c) wage = MR
    d) wage = MRP
    d) wage = MRP
  14. What happens to the MP labor when the market price of the good produced increases?
    a) Increases proportional to price
    b) Decreases proportional to price
    c) Stays the same
    d) Falls because quantity demanded falls
    c) Stays the same
  15. A union can influence the demand for labor by
    a) requiring union fees
    b) raising union fees
    c) using effective advertising that convinces customers to buy the "union label."
    d) doing all of the above
    c) using effective advertising that convinces customers to buy the "union label."
  16. A union can influence the equilibrium wage rate by
    a) collective bargaining
    b) feather bedding 
    c) lobbying for legislation to reduce immigration
    d) doing all of the above
    d) doing all of the above
  17. Which of the following countries has the largest union membership measured as the percentage of civilian employees in unions?
    a) The United States
    b) Japan
    c) The United Kingdom
    d) Sweden
    d) Sweden
  18. Suppose a firm can hire 100 workers at $8.00 per hour but must pay $8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to
    a) $8.00
    b) $8.05
    c) $13.05
    d) $13.00
    c) $13.05
  19. A graph of the actual cumulative distribution of income compared to a perfectly equal cumulative distribution of income.
    Lorenz curve
  20. "Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as
    a) untrue
    b) a form of discrimination
    c) a conflict between equity and efficiency
    d) a conflict between full employment and economic growth
    c) a conflict between equity and efficiency
  21. The highest fifth of all families receive approximately what percent of the distribution of annual money income among families?
    a) 5 percent
    b) 10 percent
    c) 25 percent
    d) 50 percent
    d) 50 percent
  22. Which of the following graphs shows the cumulative shares of income received by a family?
    a) Distribution curve
    b) Lorenz curve
    c) Ricardian curve
    d) Quintile curve
    b) Lorenz curve
  23. When the Lorenz curve lies above the diagonal, 
    a) the poorest 20 percent of the population receive more than 20 percent of income
    b) the richest 20 percent of the population receive more than 20 percent of income
    c) everyone receives the same income
    d) the curve is wrong because it is impossible for the graph to look like this
    d) the curve is wrong because it is impossible for the graph to look like this
  24. The poverty line
    a) separates those on welfare from those not on welfare
    b) equals three times an economy food budget
    c) equals the median income level
    d) all of the above
    b) equals three times an economy food budget
  25. Which of the following government programs provides recipients with unrestricted cash payments?
    a) Temporary Assistance to Needy Families (TANF)
    b) Medicaid
    c) The food stamp program
    d) Housing assistance programs
    a) Temporary Assistance to Needy Families (TANF)
  26. Medicaid and food stamps are
    a) available only to families
    b) counterproductive
    c) forms of in-kind assistance
    d) forms of cash assistance
    c) forms of in-kind assistance
  27. Which of the following might increase the supply curve of labor?
    a) Eliminating discrimination against African Americans
    b) Eliminating discrimination against females
    c) Easing licensing requirements
    d) all of the above
    d) all of the above
  28. Consider a law that limits women's access to certain "dangerous" occupations such as coal mining and military combat service. Such a law would likely reduce women's wages because 
    a) women would be overqualified for "non-dangerous" jobs
    b) labor supply in female-intensive occupations would increase
    c) women would be less likely to obtain college degrees
    d) comparable worth would no longer exist between men's and women's occupations
    b) labor supply in female-intensive occupations would increase
  29. Comparable worth is the principle that
    a) goods and services priced the same have about the same worth
    b) the wage rate equals the value of productivity
    c) men and women should be paid comparably
    d) employees who perform comparable jobs should be paid the same wage
    d) employees who perform comparable jobs should be paid the same wage
  30. The official U.S. poverty line for a family is calculated by taking 3 times the annual cost of
    a) public housing
    b) basic medical care
    c) utilities and transportation
    d) a minimal diet
    d) a minimal diet
  31. Which of the following programs is an example of in-kind assistance to fight poverty in the United States?
    a) Medicaid
    b) unemployment benefits
    c) Temporary Assistance to Needy Families (TANF)
    d) food stamps
    e) both a and d
    a) Medicaid
  32. The incentive to work is an ingredient of the negative income tax because
    a) if families work, they will be eliminated from the program
    b) if families don't work, they will be eliminated from the program
    c) the more income earned in the workplace, the higher the family's after-tax income
    d) the more income earned in the workplace, the higher the payment from the goverment.
    c) the more income earned in the workplace, the higher the family's after-tax income
  33. A combination or cartel consisting of firms that place their assets in the custody of a board of trustees.
    Trust
  34. The practice of one or more firms temporarily reducing prices in order to eliminate competition and then raising prices
    Predatory pricing
  35. The federal antitrust law enacted in 1890 that prohibits monopolization and conspiracies to restrain trade
    Sherman Act
  36. A 1914 amendment that strengthens the Sherman Act by making it illegal for firms to engage in certain anti-competitive business practices
    Clayton Act
  37. The antitrust doctrine that the existence of monopoly alone is not illegal unless the monopoly engages in illegal business practices
    Rule of reason
  38. The antitrust doctrine that the existence of monopoly alone is illegal, regardless of whether or not the monopoly engages in illegal business practices.
    Per se rule
  39. A merger of firms that compete in the same market
    horizontal merger
  40. A merger of a firm with its suppliers
    Vertical merger
  41. A merger between firms in unrelated markets
    Conglomerate merger
  42. The antitrust law that prohibits firms from combining or conspiring to retrain trade in interstate commerce is the
    a) Federal Trade commission Act
    b) Clayton Act
    c) Sherman Antitrust Act
    d) Robinson-Patman Act
    c) Sherman Antitrust Act
  43. Price discrimination that tends to lessen competition is outlawed by the
    a) Sherman Act
    b) Clayton Act and amended by Robinson-Patman Act
    c) Federal Trade Commission Act
    d) Interstate Commerce Act
    b) Clayton Act and amended by Robinson-Patman Act
  44. If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the
    a) Clayton Act
    b) Robinson-Patman Act
    c) Sherman Act
    d) Federal Trade Commission Act
    a) Clayton Act
  45. For many years, AT&T required customers to rent telephones from AT&T in order to receive phone service. This is an example of
    a) price discrimination
    b) a tying contract
    c) an interlocking directorate
    d) exclusive dealing
    b) a tying contract
  46. Interlocking directorates are illegal under the ________ whether or not the effect may be to substantially lessen competition.
    a) Clayton Act
    b) Robinson-Patman Act
    c) Sherman Antitrust Act
    d) Federal Trade Commission Act
    a) Clayton Act
  47. Which of the following was not illegal under the original Clayton Act?
    a) tying contracts
    b) interlocking directorates
    c) merger by purchase of assets with cash
    d) all of the above
    c) merger by purchase of assets with cash
  48. During this century, court decisions on antitrust have
    a) changed from per se to rule of reason and back to per se
    b) changed from rule of reason to per se and back to rule of reason
    c) always emphasized per se
    d) always emphasized rule of reason
    b) changed from rule of reason to per se and back to rule of reason
  49. The per se rule was introduced in which case?
    a) Standard Oil
    b) IBM
    c) American Tobacco Trust
    d) Alcoa
     d) Alcoa
  50. The Interstate Commerce Commission (ICC) was established in 1887 to regulate
    a)banking
    b) railroads and all surface transportation
    c) nationwide advertising
    d) interstate sales of food and drugs
     b) railroads and all surface transportation
  51. Under the Clayton Act, which of the following was illegal, even if it was not shown to lessen competition substantially? 
    a) price discrimination
    b) tying contract
    c) horizontal mergers by stock acquisition
    d) interlocking directorates
    d) interlocking directorates
  52. Under Clayton Act
    a) the same person can sit on the boards of directors of competing corporations
    b) mergers are illegal
    c) monopoly is illegal
    d) the Sherman Act was repealed
    a) the same person can sit on the boards of directors of competing corporations
  53. Imperfect knowledge about a product can cause
    a) excessive resources devoted to producing a product
    b) consumers paying too high a price for a product
    c) over-consumption of a product
    d) all of the above
    d) all of the above

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