Question 1

The bulk of national income flows to:&#10;A)land owners in the form of rent&#10;B)capital owners in the form of interest&#10;C)capital owners in the form of profit&#10;D)workers in the form of wages and salaries

Accepted Answer

The bulk of national income flows to workers in the form of wages and salaries. While landowners may receive rent and capital owners may receive both interest and profit, the majority of people in the economy are employed and earn income through their work.

Question 2

Which one of the following topics is most suited to microeconomic analysis?&#10;A)The average level of real wages&#10;B)The unemployment rate&#10;C)The average level of labor productivity&#10;D)Mobility and migration decisions

Accepted Answer

Microeconomic analysis focuses on the behavior of individuals and firms in making decisions regarding the allocation of resources. Mobility and migration decisions are examples of individual choices that directly relate to microeconomic analysis, as they involve decisions made by individuals or households about where to live and work.

Question 3

The three basic characteristics of the economic perspective are:&#10;A)Relative scarcity,purposeful behavior,and adaptability&#10;B)Supply,demand,and equilibrium&#10;C)Description,institutions,and facts&#10;D)Prices,quantities,and incomes

Accepted Answer

The three basic characteristics of the economic perspective are relative scarcity, purposeful behavior, and adaptability. Relative scarcity refers to the fact that resources are limited in comparison to the wants and needs of people. Purposeful behavior means that people make rational decisions based on their own self-interest, while adaptability means that people are willing to change their behavior in response to changes in their environment, including changes in prices and availability of resources. The other choices are either not relevant or not comprehensive enough to describe the key characteristics of the economic perspective.

Question 4

Which one of the following topics is most suited to macroeconomic analysis?&#10;A)Labor supply decisions of married women&#10;B)Short-run labor demand in a particular industry&#10;C)The individual decision on how much education to obtain&#10;D)The impact of a recession on the country's unemployment rate

Accepted Answer

Macroeconomics focuses on the overall performance of an economy, including factors such as inflation, GDP, and unemployment rates. The impact of a recession on a country's unemployment rate falls under macroeconomic analysis. The other options focus on individual or industry-specific decisions, which are more suited to microeconomic analysis.

Question 5

Because resources are scarce relative to human wants,economics is best described as:&#10;A)the science of allocating productive resources fairly&#10;B)a science of choice&#10;C)the science of allocating goods and services fairly&#10;D)the set of natural laws that govern human behavior in the face of adverse conditions

Accepted Answer

Economics is the science of how individuals and societies allocate scarce resources to satisfy unlimited wants. Therefore, it involves making choices or trade-offs between different alternatives. Hence, option B is the most appropriate description of economics.

Question 6

(World of Work 1-2)According to a newspaper account from Washington State,lottery winners in that state:&#10;A)usually continued to work when prizes were $1 million or less and usually quit work when prizes exceeded $4 million&#10;B)usually continued to work,no matter how large the prize&#10;C)usually quit work,no matter how large the prize&#10;D)were less likely to quit work the larger was the prize

Accepted Answer

Winners tend to continue working when the prize is relatively small (up to $1 million) because such an amount, while significant, might not be enough to sustain a long-term, comfortable lifestyle without additional income. However, when the prize exceeds $4 million, it's more likely that winners perceive the amount as sufficient to support themselves without the need for further employment, leading them to quit their jobs.

Question 7

Because scarcity forces people to make purposeful choices,labor market participants:&#10;A)work as many hours as possible&#10;B)respond to changes in perceived costs and benefits&#10;C)make choices that cannot be predicted&#10;D)must have perfect information

Accepted Answer

Labor market participants need to respond to changes in perceived costs and benefits to make purposeful choices due to scarcity. Working as many hours as possible or making choices that cannot be predicted may not necessarily be purposeful and may not necessarily respond to changes in costs and benefits. Additionally, having perfect information is almost impossible in any market, let alone the labor market.

Question 8

The &#34;old&#34; view of labor economics stresses _____ while the &#34;new&#34; view focuses upon _____.&#10;A)analysis ; markets&#10;B)description; analysis&#10;C)description; institutions&#10;D)institutions; description

Accepted Answer

The "old" view of labor economics emphasizes description, focusing on the detailed depiction of labor markets and behaviors, while the "new" view prioritizes analysis, applying theoretical and empirical methods to understand and predict labor market outcomes.

Question 9

(World of Work 1-1)Nobel Laureate Gary Becker is known for economic theories in all of the following areas except:&#10;A)economics of households&#10;B)investment in human capital&#10;C)the &#34;old&#34; labor economics&#10;D)economics of discrimination

Accepted Answer

Gary Becker is known as a pioneer in the development of human capital theory, economics of households and economics of discrimination. However, he is not known for the "old" labor economics, which refers to the classical and neoclassical theories of labor economics that were developed prior to Becker's contributions.

Question 10

Labor economics is studied as a distinct subfield of economics because:&#10;A)the bulk of national income is received by labor&#10;B)the concepts of supply and demand must be revised somewhat when applied to labor markets&#10;C)labor economics can be used to analyze major socioeconomic trends such as the surge in the number of women workers&#10;D)all of the above

Accepted Answer

all three statements are correct. Labor economics is a distinct subfield of economics because labor accounts for the bulk of national income, the supply and demand framework must be revised when applied to labor markets, and labor economics can be used to analyze major socioeconomic trends such as the increase of women in the workforce.

Question 11

The concept of demand must be modified when applied to labor markets to reflect the fact that:&#10;A)non-monetary characteristics of jobs may be as important to workers as their pay&#10;B)labor demand curves slope upward from left to right&#10;C)the demand for labor is derived from the demand for the various products that labor produces&#10;D)the demand for output is derived from the demand for labor used to produce that output

Accepted Answer

The answer of The concept of demand must be modified...

Question 12

As distinct from product market transactions,labor market transactions are unique in that:&#10;A)to the seller,the nonmonetary characteristics of the sale can be as important as the price&#10;B)labor demand curves slope upward&#10;C)the price of labor is not determined by supply and demand factors&#10;D)they are less complex

Accepted Answer

The answer of As distinct from product market transactions,labor market...

Question 13

(World of Work 1-1)Nobel Laureate Gary Becker's basic professional contribution is his:&#10;A)application of traditional theories of anthropology to labor markets&#10;B)application of the economic perspective to law,sociology,demographics,and anthropology&#10;C)statistical verification of race and gender discrimination&#10;D)explanation of the limitations of the economic perspective in explaining labor markets

Accepted Answer

The answer of (World of Work 1-1)Nobel Laureate Gary Becker's...

Deck 1: Labor Economics: Introduction and Overview