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1. Voluntary migration of skilled craftworkers from low-paying to high-paying nations is most likely to be opposed by: (Points : 2)
business groups in the high-paying nations.
craft workers who stay in the low-paying nations.
industrial unions in the high-paying nations.
craft unions in the high-paying nations.
3. Labor market discrimination creates a: (Points : 2)
redistribution of a larger domestic output.
larger domestic output but no redistribution.
smaller domestic output but no redistribution.
redistribution of a smaller domestic output.
7. The fact that people prefer present consumption to future consumption results in: (Points : 2)
a downsloping demand for loanable funds curve.
an upsloping supply of loanable funds curve.
a downsloping supply of loanable funds curve.
an upsloping demand for loanable funds curve.
9. In the real world, specialization is rarely complete because: (Points : 2)
nations normally experience increasing opportunity costs in producing more of the product in which they are specializing.
production possibilities curves are straight lines rather than curves bowed outward as viewed from the origin.
one nation’s imports are necessarily another nation’s exports.
international law prohibits monopolies.
12. The idea of efficiency wages is that: (Points : 2)
the wages of each type of labor must be proportionate to their marginal products.
the wages of each type of labor must be equal to their marginal products.
firms might get greater work effort by paying above-equilibrium wage rates.
workers are more diligent when paid below-equilibrium wages.
14. Independent unions: (Points : 2)
have greater combined membership than the AFL-CIO.
are not affiliated with the AFL-CIO.
include the United Autoworkers and Carpenters Union.
have about the same combined membership as the AFL-CIO.
17. The Lorenz curve portrays: (Points :
2[B1]
) .,
the functional distribution of income.
the ratio of labor to capitalist income.
the personal distribution of income.
income equality.
21. The lifetime distribution of income is more equal than the annual distribution. This statement is: (Points : 2)
true, because the rich have gotten richer and the poor have gotten poorer.
true, because there is considerable income mobility over time.
false, because people tend to stay in the same income quintile over extended periods of time.
false, because the rich have gotten richer and the poor have gotten poorer.
22. Supporters of offshoring claim that its benefits include: (Points : 2)
increased demand for workers in complementary jobs.
keeping U.S. firms profitable by lowering production costs.
reduced prices for consumers.
all of these.
25. The demand for airline pilots results from the demand for air travel. This fact is an example of: (Points : 2)
resource substitutability.
rising marginal resource cost.
elasticity of resource demand.
the derived demand for labor.
26. The availability of health insurance tends to: (Points : 2)
decrease the demand for health care and cause an underallocation of resources to the health care industry.
increase the quantity of health care demanded and cause an underallocation of resources to the health care industry.
increase the quantity of health care demanded and cause an overallocation of resources to the health care industry.
decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.
28. Henry George advocated a single tax on: (Points : 2)
real capital.
entrepreneurial profits.
land.
labor income.
29. The crowding of women and minorities into a restricted number of occupations: (Points : 2)
has no impact on the size of the domestic output or its distribution in the long run.
will increase the size of the domestic output and make its distribution more equal.
will decrease the size of the domestic output and make its distribution less equal.
will increase the size of the domestic output, but make its distribution less equal.
30. Renewable resources: (Points : 2)
can never be exhausted permanently.
can be exhausted if harvest rates exceed replenishment rates for an extended period.
can be exhausted if replenishment rates exceed harvest rates for an extended period.
will tend to be over-harvested when they are private property.
33. In the United States, the rate of unionization is: (Points : 2)
higher in mining than in government.
lower in transportation than agriculture.
higher in transportation than in retail trade.
lower in government than in finance, insurance, and real estate.
34. Two of the implications of large U.S. trade deficits for the United States are: (Points : 2)
decreased current consumption and decreased indebtedness to foreigners.
reduced budget deficits and decreased indebtedness to foreigners.
reduced current consumption and higher saving.
increased current consumption and increased indebtedness to foreigners.
35. Statistical discrimination: (Points : 2)
can persist in the long run if differences in average characteristics among groups continue.
will tend to diminish in the long run, because nondiscriminating firms will drive out discriminating firms.
requires that employers have discrimination coefficients greater than zero.
is also known as occupational segregation.
36. Employers will hire more units of a resource if: (Points : 2)
the price of the resource increases.
the productivity of the resource increases.
the price of the good being produced declines.
the price of a complementary resource rises.
40. If a U.S. importer can purchase 10,000 pounds for $20,000, the rate of exchange is: (Points : 2)
$1 = 2 pounds in the United States.
$2 = 1 pound in the United States.
$1 = 2 pounds in Great Britain.
$.5 = 1 pound in Great Britain.
41. Given the availability of the Medicaid program, why are so many poor people uninsured? (Points : 2)
Because only a fixed percentage of the population can participate in Medicaid at any time.
Because many poor people earn enough that they do not qualify for Medicaid.
Because nonincome requirements screen many poor people from the program.
Because only native-born Americans are eligible for the program.
43. The parity ratio: (Points : 2)
compares worker productivity in the farm and nonfarm sectors.
is the ratio of per capita farm income to per capita nonfarm income.
is the ratio of prices received by farmers to prices paid by farmers.
is the ratio of prices paid by farmers to prices received by farmers.
45. Defensive medicine refers to the idea that: (Points : 2)
it is more cost-efficient to prevent illnesses than to cure them.
physicians may require unnecessary testing as a means of protecting themselves against malpractice suits.
doctors know much more about diagnosing and treating illnesses than do health care consumers.
physicians do not advertise their services or fees.
48. A major implication of asymmetric information is that: (Points : 2)
health care suppliers may reduce the supply of health care.
health care suppliers may increase the demand for health care.
collusion between health care suppliers and purchasers may accelerate the rise in costs.
resources may be underallocated to the health care industry.
49. An example of a social insurance program is ____________, whereas an example of public assistance program is _______. (Points : 2)
Temporary Assistance for Needy Households; unemployment compensation
Supplemental Security Income; unemployment compensation
Social Security; food stamps
Medicaid; Medicare
50. A lower equilibrium interest rate: (Points : 2)
increases saving, reduces total spending, and increases total output.
decreases saving, increases total spending, and decreases total output.
increases investment, increases total spending, and increases total output.
decreases investment, decreases total spending, and increases total output.
[B1]
