Questions:
1.Suppose that we compare shares of income earned by different U.S. groups by dividing all households into five groups. Which of the following statements about the income distribution in the United States is correct?
A. Shares of income increase as we move from the lowest quintile to the highest quintile.
B. Shares of income remain roughly constant as we move from the lowest quintile to the highest quintile.
C. Shares of income decrease as we move from the lowest quintile to the highest quintile.
D. none of the above
2.An equilibrium in the labor market is a situation in which
a. There is no unemployment.
B. Marginal revenue product equals the wage.
C. Wages exceed minimum wage.
D. There is no pressure for wages to change.
3.When wages increase the income effect of labor supply _______ the quantity of labor supplied because
A. increases; the price of leisure has increased.
B. reduces; workers acquire more of all normal goods when income increases.
C. reduces; the price of leisure has increased.
D. increases; the value of working has increased.
4.Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until
A. average total costs are minimized.
B. marginal revenur product of the last worker hired equals the wage.
C. marginal productivity begins to diminish.
D. the price of the product equals the wage of the worker.
5.What are the two critical measurement of a nation's economic health?
A. sales and taxes
B. income and spending
C. production and income
D. wages and raises
6.If real GDP was 100 in 2011 and 104.4 in 2012, the groth rate of real GDP between 2011 and 2012 was
A. 2.2 percent
B. 4.4 percent
C. 100 percent
D. 102.2 percent