UNIVERSITY OF COLORADO-DENVER Principles of Microeconomics Econ 2022-OL1 Spring 2013

      [removed] business groups in the high-paying nations.       [removed] craft workers who stay in the low-paying nations.       [removed] industrial unions in the high-paying nations.       [removed] craft unions in the high-paying nations.

      [removed] earnings reflect pricing power rather than marginal revenue product.       [removed] small differences in talent get magnified into huge differences in pay.       [removed] entry and exit rarely occur.       [removed] product demand is typically highly elastic.

      [removed] redistribution of a larger domestic output.       [removed] larger domestic output but no redistribution.       [removed] smaller domestic output but no redistribution.       [removed] redistribution of a smaller domestic output.

      [removed] indicates that price increases bring forth more of a resource.       [removed] is the idea that competitive markets will always clear.       [removed] applies to all resources.       [removed] only applies to land.

      [removed] a perfectly elastic labor supply curve and a downsloping labor demand curve.       [removed] a perfectly elastic labor demand curve and an upsloping labor supply curve.       [removed] labor demand and labor supply curves both of which are perfectly elastic.       [removed] a downsloping labor demand curve and an upsloping labor supply curve.

      [removed] capital and labor being complementary inputs.       [removed] capital and labor being substitute inputs.       [removed] the output effect being greater than the substitution effect.       [removed] diminishing returns being applicable to capital but not to labor.

      [removed] a downsloping demand for loanable funds curve.       [removed] an upsloping supply of loanable funds curve.       [removed] a downsloping supply of loanable funds curve.       [removed] an upsloping demand for loanable funds curve.

      [removed] horizontal; vertical       [removed] vertical; horizontal       [removed] downsloping; upsloping       [removed] upsloping; downsloping

      [removed] nations normally experience increasing opportunity costs in producing more of the product in which they are specializing.       [removed] production possibilities curves are straight lines rather than curves bowed outward as viewed from the origin.       [removed] one nation’s imports are necessarily another nation’s exports.       [removed] international law prohibits monopolies.

      [removed] the tariff and quota both generate the same amount of revenue for the United States Treasury.       [removed] the tariff generates revenue for the United States Treasury but the quota does not.       [removed] the quota generates revenue for the United States Treasury but the tariff does not.       [removed] neither the tariff nor the quota generates revenue for the United States Treasury.

      [removed] relative levels of GDP.       [removed] comparative advantage.       [removed] relative exchange rates.       [removed] relative inflation rates.

      [removed] the wages of each type of labor must be proportionate to their marginal products.       [removed] the wages of each type of labor must be equal to their marginal products.       [removed] firms might get greater work effort by paying above-equilibrium wage rates.       [removed] workers are more diligent when paid below-equilibrium wages.

      [removed] increases the personal income tax liability of low-income working families.       [removed] provides a cash payment to low-income working families if their tax credit exceeds their tax liability.       [removed] is designed to make labor force employment less attractive.       [removed] was eliminated as part of welfare reform in 1996.

      [removed] have greater combined membership than the AFL-CIO.       [removed] are not affiliated with the AFL-CIO.       [removed] include the United Autoworkers and Carpenters Union.       [removed] have about the same combined membership as the AFL-CIO.

      [removed] declined sharply since 1900 because of the growing strength of labor unions.       [removed] remained approximately constant in this century.       [removed] increased significantly because of rising rents.       [removed] fallen in this century because of the declining importance of corporations.

      [removed] is a form of price discrimination illegal under U.S. antitrust laws.       [removed] is the practice of selling goods in a foreign market at less than cost.       [removed] constitutes a general case for permanent tariffs.       [removed] is defined as selling more goods than allowed by an import quota.

      [removed] the functional distribution of income.       [removed] the ratio of labor to capitalist income.       [removed] the personal distribution of income.       [removed] income equality.

      [removed] normally causes a surplus on the capital and financial account.       [removed] normally causes a deficit on the capital and financial account.       [removed] has no relationship to the capital and financial account.       [removed] means that a nation is making international transfers.

      [removed] contains inpayment items, but not outpayment items.       [removed] includes service exports and service imports.       [removed] includes both inpayments and outpayments.       [removed] includes net investment income and net transfers.

      [removed] results in a less-experienced work force.       [removed] increases the incentive for firms to provide training to their workers.       [removed] allows firms to employ a greater number of younger, more energetic workers.       [removed] increases the incentive for firms to substitute labor for capital in the production process.

      [removed] true, because the rich have gotten richer and the poor have gotten poorer.       [removed] true, because there is considerable income mobility over time.       [removed] false, because people tend to stay in the same income quintile over extended periods of time.       [removed] false, because the rich have gotten richer and the poor have gotten poorer.

      [removed] increased demand for workers in complementary jobs.       [removed] keeping U.S. firms profitable by lowering production costs.       [removed] reduced prices for consumers.       [removed] all of these.

      [removed] rise more slowly than those of less-educated workers.       [removed] rise more rapidly than those of less-educated workers.       [removed] rise at about the same rate as those of less-educated workers.       [removed] stagnate earlier than do those of less-educated workers.

      [removed] government should subsidize the most productive workers through a system of transfer payments.       [removed] each individual should receive income based on his contribution to total output.       [removed] resource owners should receive income based on the idea of “from each according to his ability, to each according to his wants.”       [removed] resource owners should receive income based upon their needs.

      [removed] resource substitutability.       [removed] rising marginal resource cost.       [removed] elasticity of resource demand.       [removed] the derived demand for labor.

      [removed] decrease the demand for health care and cause an underallocation of resources to the health care industry.       [removed] increase the quantity of health care demanded and cause an underallocation of resources to the health care industry.       [removed] increase the quantity of health care demanded and cause an overallocation of resources to the health care industry.       [removed] decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.

      [removed] 0 and 10,000.       [removed] 1 and 10.       [removed] 1 and +1.       [removed] 0 and 1.

      [removed] real capital.       [removed] entrepreneurial profits.       [removed] land.       [removed] labor income.

      [removed] has no impact on the size of the domestic output or its distribution in the long run.       [removed] will increase the size of the domestic output and make its distribution more equal.       [removed] will decrease the size of the domestic output and make its distribution less equal.       [removed] will increase the size of the domestic output, but make its distribution less equal.

      [removed] can never be exhausted permanently.       [removed] can be exhausted if harvest rates exceed replenishment rates for an extended period.       [removed] can be exhausted if replenishment rates exceed harvest rates for an extended period.       [removed] will tend to be over-harvested when they are private property.

      [removed] the optimal amount of immigration to the United States is probably zero.       [removed] everyone who wishes to come to the United States should be allowed to do so.       [removed] a particular level of immigration may be too low or too high.       [removed] efforts to reduce the inflow of illegal immigrants should be abandoned.

      [removed] rich people buy too much health care and poor people buy too little.       [removed] some resources now used in the health care industry could produce alternative goods and services that society values more highly.       [removed] health care is being purchased in amounts such that marginal benefits exceed marginal costs.       [removed] the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.

      [removed] higher in mining than in government.       [removed] lower in transportation than agriculture.       [removed] higher in transportation than in retail trade.       [removed] lower in government than in finance, insurance, and real estate.

      [removed] decreased current consumption and decreased indebtedness to foreigners.       [removed] reduced budget deficits and decreased indebtedness to foreigners.       [removed] reduced current consumption and higher saving.       [removed] increased current consumption and increased indebtedness to foreigners.

      [removed] can persist in the long run if differences in average characteristics among groups continue.       [removed] will tend to diminish in the long run, because nondiscriminating firms will drive out discriminating firms.       [removed] requires that employers have discrimination coefficients greater than zero.       [removed] is also known as occupational segregation.

      [removed] the price of the resource increases.       [removed] the productivity of the resource increases.       [removed] the price of the good being produced declines.       [removed] the price of a complementary resource rises.

      [removed] wages and hours.       [removed] union status.       [removed] seniority and job opportunities.       [removed] all of these.

      [removed] the very rich establish consumption patterns that are desirable for the rest of society to emulate.       [removed] the rich buy luxury goods that soon become affordable to everyone else because of economies of scale.       [removed] income inequality is essential to maintain incentives to produce.       [removed] inequality undermines incentives and tends to reduce the size of the national income.

      [removed] measures the average number of children that a woman is expected to have during her lifetime.       [removed] measures the average number of children that each couple is expected to have during their lifetime.       [removed] equals the rate of population change over time.       [removed] rises as income rises.

      [removed] $1 = 2 pounds in the United States.       [removed] $2 = 1 pound in the United States.       [removed] $1 = 2 pounds in Great Britain.       [removed] $.5 = 1 pound in Great Britain.

      [removed] Because only a fixed percentage of the population can participate in Medicaid at any time.       [removed] Because many poor people earn enough that they do not qualify for Medicaid.       [removed] Because nonincome requirements screen many poor people from the program.       [removed] Because only native-born Americans are eligible for the program.

      [removed] resource market.       [removed] bond market.       [removed] stock market.       [removed] foreign exchange market.

      [removed] compares worker productivity in the farm and nonfarm sectors.       [removed] is the ratio of per capita farm income to per capita nonfarm income.       [removed] is the ratio of prices received by farmers to prices paid by farmers.       [removed] is the ratio of prices paid by farmers to prices received by farmers.

      [removed] lower wage rate and hire fewer workers than will a purely competitive employer.       [removed] higher wage rate but hire fewer workers than will a purely competitive employer.       [removed] lower wage rate but hire a larger number of workers than will a purely competitive employer.       [removed] higher wage rate and hire a larger number of workers than will a purely competitive employer.

      [removed] it is more cost-efficient to prevent illnesses than to cure them.       [removed] physicians may require unnecessary testing as a means of protecting themselves against malpractice suits.       [removed] doctors know much more about diagnosing and treating illnesses than do health care consumers.       [removed] physicians do not advertise their services or fees.

      [removed] labor costs and product prices are not related.       [removed] there is no discernible relationship between wage rates and labor productivity.       [removed] wage rates and labor productivity are directly related.       [removed] wage rates and labor productivity are inversely related.

      [removed] a situation in which a union forces an employer to hire union workers in preference to nonunion workers.       [removed] the requirement that unneeded workers be retained on a job.       [removed] the refusal by one union to handle or transport goods produced by workers in another union.       [removed] disputes among two or more unions as to which will perform certain jobs.

      [removed] health care suppliers may reduce the supply of health care.       [removed] health care suppliers may increase the demand for health care.       [removed] collusion between health care suppliers and purchasers may accelerate the rise in costs.       [removed] resources may be underallocated to the health care industry.

      [removed] Temporary Assistance for Needy Households; unemployment compensation       [removed] Supplemental Security Income; unemployment compensation       [removed] Social Security; food stamps       [removed] Medicaid; Medicare

      [removed] increases saving, reduces total spending, and increases total output.       [removed] decreases saving, increases total spending, and decreases total output.       [removed] increases investment, increases total spending, and increases total output.       [removed] decreases investment, decreases total spending, and increases total output.