The quantity of labor an individual supplies to any market
a. always increases as the market wage rate rises
b. is contingent upon the wage rates offered in other labor markets
c. always decreases as the market wage rate rises
d. could never be zero over the realistic range of wage rates
e. depends only on the opportunity cost of the individual's time in other labor markets
QUESTION 2Of the following, who would probably have the highest income?
a. a couple, both of whom have high school educations and work at WalMart
b. a husband who has a high school degree and a middle-management job and his wife, who is a full-time mother
c. a couple, both of whom have high school educations; he is a high school teacher and she is a librarian
d. a husband who has a college degree and is a high school teacher and his wife, who has an MBA and works as a insurance company executive
e. a couple, both of whom have college degrees and are high school teachers
QUESTION 3Every individual has a labor supply curve in each market where there is a possible use for his/her labor.
a. True
b. False
QUESTION 4In every age group, average income in the United States increases with education.
a. True
b. False
QUESTION 5The minimum wage can be thought of as a price floor. The great majority of labor economists believe that a minimum wage __________ unemployment among young and unskilled workers.
a. increases
b. decreases
c. eliminates
d. has no effect on
e. There is not enough information to answer the question.
QUESTION 6If official U.S. poverty statistics included in-kind transfer payments,
a. the poverty rate would be close to zero
b. the poverty rate would be lower
c. the government deficit would be lower
d. the inflation rate would be higher
e. the top 10 percent of those in the income distribution would be wealthier
QUESTION 7The income of a resource whose supply is fixed is entirely economic rent.
a. True
b. False
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