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1-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 01 Test Bank KEY
- Because resources are scarce relative to human wants, economics is best described as
- the science of allocating productive resources fairly.
- a science of choice.
- the science of allocating goods and services fairly.
- the set of natural laws that govern human behavior in the face of adverse conditions.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
- Labor economics is studied as a distinct subfield of economics because
- the bulk of national income is received by labor.
- the concepts of supply and demand must be revised somewhat when applied to labor markets.
- labor economics can be used to analyze major socioeconomic trends such as the surge in the number of women
- All of these choices are correct.
workers.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
- The bulk of national income flows to
- landowners in the form of rent.
- capital owners in the form of interest.
- capital owners in the form of profit.
- workers in the form of wages and salaries.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
- As distinct from product market transactions, labor market transactions are unique in that
- to the seller, the nonmonetary characteristics of the sale can be as important as the price.
- labor demand curves slope upward.
- the price of labor is not determined by supply and demand factors.
- they are less complex.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
- The concept of demand must be modified when applied to labor markets to reflect the fact that
- nonmonetary characteristics of jobs may be as important to workers as their pay.
- labor demand curves slope upward from left to right.
- the demand for labor is derived from the demand for the various products that labor produces.
- the demand for output is derived from the demand for labor used to produce that output.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
(Contemporary Labor Economics, 11e Campbell McConnell, Stanley Brue, David Macpherson) (Test Bank all Chapters) 1 / 4
1-2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
- The "old" view of labor economics stresses _____, while the "new" view focuses upon _____.
- analysis; markets
- description; analysis
- description; institutions
- institutions; description
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: The "Old" and the "New"
- Because scarcity forces people to make purposeful choices, labor market participants
- work as many hours as possible.
- respond to changes in perceived costs and benefits.
- make choices that cannot be predicted.
- must have perfect information.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Economic Perspective
- The three basic characteristics of the economic perspective are
- relative scarcity, purposeful behavior, and adaptability.
- supply, demand, and equilibrium.
- description, institutions, and facts.
- prices, quantities, and incomes.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Economic Perspective
- Which one of the following topics is most suited to macroeconomic analysis?
- labor supply decisions of married women
- short-run labor demand in a particular industry
- the individual decision on how much education to obtain
- the impact of a recession on the country’s unemployment rate
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily “macroeconomic.
Topic: Overview
- Which one of the following topics is most suited to microeconomic analysis?
- the average level of real wages
- the unemployment rate
- the average level of labor productivity
- mobility and migration decisions
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium 2 / 4
1-3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily “macroeconomic.
Topic: Overview
- Nobel Laureate Gary Becker is known for economic theories in all of the following areas except
- economics of households.
- investment in human capital.
- the "old" labor economics.
- economics of discrimination.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily “macroeconomic.
Topic: Overview
- Nobel Laureate Gary Becker’s basic professional contribution is his
- application of traditional theories of anthropology to labor markets.
- application of the economic perspective to law, sociology, demographics, and anthropology.
- statistical verification of race and gender discrimination.
- explanation of the limitations of the economic perspective in explaining labor markets.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily “macroeconomic.
Topic: Overview
- According to a newspaper account from Washington State, lottery winners in that state
- usually continued to work when prizes were $1 million or less and usually quit work when prizes exceeded $4
- usually continued to work, no matter how large the prize.
- usually quit work, no matter how large the prize.
- were less likely to quit work the larger was the prize.
million.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Overview
Chapter 01 Test Bank Summary Category # of Questi ons
AACSB: Reflective Thinking 13
Accessibility: Keyboard Navigation 13
Blooms: Remember 11
Blooms: Understand 2
Difficulty: 1 Easy 11
Difficulty: 2 Medium 2
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry. 6 3 / 4
1-4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objective: 01-
02 Describe how the economic perspective can be applied to analysis of labor markets.3
Learning Objective: 01-
03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primaril y “macroeconomic.4
Topic: Economic Perspective 2
Topic: Labor Economics as a Discipline 5
Topic: Overview 5
Topic: The "Old" and the "New" 1
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