My Home EC2100 - Microeconomics Topic 10 Quiz
Quiz Submissions - Topic 10 Quiz
Question 1 1 / 1 point
The four factors of production that produce goods and services are
A)
labor, stocks, money, and bonds.
B)
labor, money, machinery, and land.
Correct Response
C)
labor, capital, land, and entrepreneurship.
D)
labor, capital, money, and entrepreneurship.
E)
labor, investment capital, machinery, and land.
Question 2 1 / 1 point
Entrepreneurship differs from the other factors of production because it
A)
is not real.
B)
is not paid.
Correct Response
C)
is not traded in a factor market.
D)
is the most important.
E)
has only existed since the new economy of the 1990s.
Question 3 1 / 1 point
If the demand for a good increases, the demand for the factors used to produce the good
Correct Response
A)
increases.
B)
decreases.
C)
stays the same.
D)
could increase, decrease, or stay the same depending on whether the demand for the good is elastic, inelastic, or unit elastic.
E)
None of the above answers is correct.
Question 4 1 / 1 point
The value of marginal product of labor
A)
is constant as long as each worker is paid the same wage rate.
B)
always increases as more labor is hired.
C)
at first decreases and then increases as more workers are hired.
D)
declines only if each worker is paid more than the previous worker.
Correct Response
E)
at some point declines as more workers are hired.
Question 5 1 / 1 point
The wage paid to labor is
A)
a factor output.
Correct Response
B)
a factor price.
C)
part of the firm's normal profit.
D)
a factor input.
E)
an input of the workforce.
Question 6 1 / 1 point
As the wage rate rises, the quantity of labor an individual supplies
A)
increases at all wage rates.
B)
initially decreases at low wage rates and then increases at high wage rates.
Correct Response
C)
initially increases at low wage rates and then decreases at high wage rates.
D)
decreases at all wage rates.
E)
does not change.
Question 7 0 / 1 point
Unions ________ free trade and ________ a higher minimum wage.
A)
are neutral toward; oppose
B)
favor; oppose
Correct Answer
C)
oppose; favor
D)
oppose; oppose
Incorrect Response
E)
favor; favor
Question 8 1 / 1 point
Unions support immigration restrictions because the restrictions create
Correct Response
A)
an increase in the demand for union labor.
B)
a decrease in the demand for union labor.
C)
unemployment.
D)
a decrease in the supply of union labor.
E)
an increase in the supply of union labor.
Question 9 0 / 1 point
Other things remaining the same, the
Incorrect Response
A)
higher the rental rate of capital, the greater the quantity of capital demanded.
Correct Answer
B)
higher the rental rate of capital, the smaller the quantity of capital demanded.
C)
lower the rental rate of capital, the smaller the quantity of capital demanded.
D)
higher the rental rate of capital, the more the demand for capital decreases.
E)
rental rate of capital and the quantity of capital demanded are not related.
Question 10 1 / 1 point
As the price of land rises, the quantity supplied
A)
decreases.
B)
increases.
Correct Response
C)
stays the same.
D)
at first increases and then decreases.
E)
at first decreases and then increases.
Question 11 1 / 1 point
In the United States, the poorest 20 percent of the household receive approximately ________ percent of total money income.
A)
9.5
Correct Response
B)
3.3
C)
11.8
D)
17.6
E)
20.0
Question 12 1 / 1 point
In the United States, the richest 20 percent of households receive approximately ________ percent of total money income.
A)
75
Correct Response
B)
50
C)
12
D)
20
E)
33
Question 13 1 / 1 point
In 2004 the wealthiest 1 percent of all U.S. households owned what percentage of total wealth?
A)
less than 10 percent
B)
more than 50 percent
Correct Response
C)
more than 30 percent
D)
more than 40 percent
E)
more than 45 percent
Question 14 1 / 1 point
A Lorenz curve for income shows the
A)
total amount of income graphed against the total number of households.
Correct Response
B)
cumulative percentage of income graphed against cumulative percentage of households.
C)
relationship between income and wealth.
D)
average income graphed against the average number of people in the household.
E)
demand for Lorenz cough drops.
Question 15 1 / 1 point
If the Lorenz curve for income moves upward toward the 45° line, then the
A)
total household income increased.
Correct Response
B)
distribution of income has become more equal.
C)
mean (average) household income increased.
D)
distribution of income has become more unequal.
E)
total household income decreased.
Question 16 1 / 1 point
Of all the characteristics that lead to income inequality, the factor with the largest impact is
Correct Response
A)
education.
B)
sex.
C)
age.
D)
location.
E)
race.
Question 17 1 / 1 point
Workers who have invested in education and training
A)
are more likely to find jobs that are not rewarding.
Correct Response
B)
have a higher value of marginal product.
C)
have a more difficult time finding a job because their wage rate is higher.
D)
have identical supply curves to otherwise similar workers who have not invested in education and training.
E)
None of the above answers is correct.
Question 18 1 / 1 point
The three main ways that governments in the United States redistribute income are
A)
sales taxes, food stamps, and subsidized services.
B)
income taxes, rent control, and food stamps.
Correct Response
C)
income taxes, income maintenance programs, and subsidized services.
D)
using the rule of law, subsidized services, and income taxes.
E)
private property rights, income taxes and the minimum wage.
Question 19 1 / 1 point
In the United States, the federal and state income tax system is
Correct Response
A)
progressive.
B)
proportional.
C)
regressive.
D)
a flat-rate tax.
E)
None of the above answers is correct.
Question 20 1 / 1 point
Three types of income maintenance programs used by the United States are
Correct Response
A)
Social Security programs, unemployment compensation, and welfare programs.
B)
income taxes, Social Security, and subsidized services.
C)
welfare programs, income taxes, and the earned income tax credit.
D)
income taxes, Social Security, and the earned income tax credit.
E)
Social Security programs, OASDHI, and income taxes.
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