Question :
101) In a labor market without an efficiency wage, minimum : 1228310
101) In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate exceeds the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________.
A) surplus; fall
B) shortage; fall
C) shortage; rise
D) surplus; rise
E) surplus; not change because only efficiency wages or union wages can change.
102) The table above shows the labor demand and labor supply schedules for a nation. The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billions of hours per year.
A) $25; 260
B) $20; 280
C) $20; 260
D) $15; 260
E) $40; 320
103) The tables above show a nation’s labor demand and labor supply schedules and its production function. The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billion hours per year.
A) $50; 100
B) $40; 90
C) $30; 80
D) $40; 80
E) $20; 110
104) The tables above show a nation’s labor demand and labor supply schedules and its production function. Given the equilibrium in the labor market, potential GDP is
A) $3.0 trillion.
B) $3.7 trillion.
C) $4.2 trillion.
D) $4.5 trillion.
E) $2.0 trillion.
105) In the United States between the 1970s and the 2000s, the productivity of labor increased. This increase led to
A) an increase in the demand for labor.
B) an increase in the supply of labor.
C) a downward shift of the production function.
D) a decrease in the supply of labor.
E) no change in either the demand for or the supply of labor.
106) ________ adopts the view that aggregate fluctuations are a natural consequence of an expanding economy.
A) Classical macroeconomics
B) Keynesian economics
C) The new macroeconomics
D) The Lucas Wedge
E) The Okun Gap
107) Potential GDP
A) is the quantity of GDP produced when the economy is at full employment of all resources.
B) can never be exceeded.
C) can never be attained.
D) is another name for real GDP.
E) is another name for nominal GDP.
108) With fixed quantities of capital, land, and entrepreneurship and fixed technology, the amount of real GDP produced increases when ________ increases.
i.the quantity of labor employed
ii.the inflation rate
iii.the price level
A) i only
B) ii only
C) iii only
D) ii and iii
E) i, ii, and iii
109) The production function graphs the relationship between
A) nominal GDP and real GDP.
B) real GDP and the quantity of labor employed.
C) real GDP and capital.
D) nominal GDP and the quantity of labor employed.
E) real GDP and the supply of labor.
110) The quantity of labor demanded definitely increases if the
A) real wage rate rises.
B) real wage rate falls.
C) nominal wage rate rises.
D) nominal wage rate falls.
E) supply of labor decreases.
111) The supply of labor curve has a ________ slope because as the real wage rate rises, ________.
A) negative; firms hire fewer workers
B) positive; the opportunity cost of leisure rises
C) positive; the opportunity cost of leisure falls
D) negative; households work more hours
E) positive; firms offer more jobs
112) The real wage rate is $35 an hour. At this wage rate there are 100 billion labor hours supplied and 200 billion labor hours demanded. There is a
A) shortage of 300 billion hours of labor.
B) shortage of 100 billion hours of labor.
C) surplus of 100 billion hours of labor.
D) surplus of 300 billion hours of labor.
E) shortage of 200 billion hours of labor.
113) When the labor market is in equilibrium, real GDP ________ potential GDP.
A) is greater than
B) is equal to
C) is less than
D) might be greater than, less than, or equal to
E) is not comparable to
114) Compared to the U.S. production function, the European production function is
A) higher.
B) lower.
C) the same.
D) lower than the U.S. production function at low levels of employment and higher than the U.S. production function at high levels of employment.
E) higher than the U.S. production function at low levels of employment and lower than the U.S. production function at high levels of employment.
