Micro Economics Please answer these correctly! 1. The demand curve for labor wil

ID: 1092273 • Letter: M

Question

Micro Economics

Please answer these correctly!

1. The demand curve for labor will shift whenever

A. the marginal factor cost changes.

B. the wage rate changes.

C. demand for the final product changes.

D. the supply of labor changes.

2. If the price elasticity of demand is greater than 1, then consumer demand is

A. unrelated to the elasticity of demand.

B. unitary elastic.

C. inelastic.

D. elastic.

3. If the price elasticity of demand is less than 1, then then consumer demand is

A. unitary elastic.

B. elastic.

C. unrelated to the elasticity of demand.

D. inelastic.

4. The price elasticity of demand for labor equals

A. the percentage change in the quantity demanded of labor divided by the percentage change in the price of labor.

B. the percentage change in the price of labor divided by the percentage change in the supply of labor.

C. the slope of the demand curve for labor.

D. the change in the quantity demanded of labor divided by the change in the price of labor.

5. The supply of labor to an industry will decrease when

A. the demand for labor falls in the industry.

B. the income effect dominates the substitution effect.

C. workers receive better employment opportunities in other industries.

D. the price of leisure falls.

6. Much of a person's increased productivity can be linked to

A. the prevalent marginal tax rate.

B. the income elasticity of demand for the product.

C. the price elasticity of demand for the product.

D. on-the-job training.

7. Investment in human capital

A. is just like investment in physical capital and has a return similar to that earned from other investments.

B. is just like investment in physical capital but has a much greater return than do other investments.

C. is quite different from and has a much lower return than investment in physical capital.

D. is not comparable to other investments in any way since human capital is embodied in the person.

8. Inheritance accounts for about

A. 30 percent of income inequality.

B. 15 percent of income inequality.

C. 5 percent of income inequality.

D. 10 percent of income inequality.

9. The typical age-earnings cycle shows that

A. there is a constant positive relationship between age and earnings.

B. there is no relationship between age and earnings.

C. there is a positive relationship between age and earnings that eventually turns into a negative relationship.

D. there is a constant negative relationship between age and earnings.

10. The Social Security Fund is designed as

A. an account that allows periodic withdrawals by contributors.

B. a pay-as-you-go system.

C. an individual account with a federal reserve bank.

D. an investment portfolio that individual contributors can make periodic payments into.

11. The original impetus for Social Security was

A. to prevent future depressions.

B. a proper response to the stock market crash of 1929.

C. the result of social engineering by politicians.

D. to provide retirement fund for all persons.