Question1.Voluntary migration of skilled craftworkers fro

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.

earnings reflect pricing power rather than marginal revenue product.

small differences in talent get magnified into huge differences in pay.

entry and exit rarely occur.

product demand is typically highly elastic.

redistribution of a larger domestic output.

larger domestic output but no redistribution.

smaller domestic output but no redistribution.

redistribution of a smaller domestic output.

indicates that price increases bring forth more of a resource.

is the idea that competitive markets will always clear.

applies to all resources.

only applies to land.

a perfectly elastic labor supply curve and a downsloping labor demand curve.

a perfectly elastic labor demand curve and an upsloping labor supply curve.

labor demand and labor supply curves both of which are perfectly elastic.

a downsloping labor demand curve and an upsloping labor supply curve.

capital and labor being complementary inputs.

capital and labor being substitute inputs.

the output effect being greater than the substitution effect.

diminishing returns being applicable to capital but not to labor.

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.

horizontal; vertical

vertical; horizontal

downsloping; upsloping

upsloping; downsloping

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.

the tariff and quota both generate the same amount of revenue for the United States Treasury.

the tariff generates revenue for the United States Treasury but the quota does not.

the quota generates revenue for the United States Treasury but the tariff does not.

neither the tariff nor the quota generates revenue for the United States Treasury.

relative levels of GDP.

comparative advantage.

relative exchange rates.

relative inflation rates.

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.

increases the personal income tax liability of low-income working families.

provides a cash payment to low-income working families if their tax credit exceeds their tax liability.

is designed to make labor force employment less attractive.

was eliminated as part of welfare reform in 1996.

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.

declined sharply since 1900 because of the growing strength of labor unions.

remained approximately constant in this century.

increased significantly because of rising rents.

fallen in this century because of the declining importance of corporations.

is a form of price discrimination illegal under U.S. antitrust laws.

is the practice of selling goods in a foreign market at less than cost.

constitutes a general case for permanent tariffs.

is defined as selling more goods than allowed by an import quota.

the functional distribution of income.

the ratio of labor to capitalist income.

the personal distribution of income.

income equality.

normally causes a surplus on the capital and financial account.

normally causes a deficit on the capital and financial account.

has no relationship to the capital and financial account.

means that a nation is making international transfers.

contains inpayment items, but not outpayment items.

includes service exports and service imports.

includes both inpayments and outpayments.

includes net investment income and net transfers.

results in a less-experienced work force.

increases the incentive for firms to provide training to their workers.

allows firms to employ a greater number of younger, more energetic workers.

increases the incentive for firms to substitute labor for capital in the production process.

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.

increased demand for workers in complementary jobs.

keeping U.S. firms profitable by lowering production costs.

reduced prices for consumers.

all of these.

rise more slowly than those of less-educated workers.

rise more rapidly than those of less-educated workers.

rise at about the same rate as those of less-educated workers.

stagnate earlier than do those of less-educated workers.

government should subsidize the most productive workers through a system of transfer payments.

each individual should receive income based on his contribution to total output.

resource owners should receive income based on the idea of “from each according to his ability, to each according to his wants.”

resource owners should receive income based upon their needs.

resource substitutability.

rising marginal resource cost.

elasticity of resource demand.

the derived demand for labor.

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.

0 and 10,000.

1 and 10.

1 and +1.

0 and 1.

real capital.

entrepreneurial profits.

land.

labor income.

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.

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.

the optimal amount of immigration to the United States is probably zero.

everyone who wishes to come to the United States should be allowed to do so.

a particular level of immigration may be too low or too high.

efforts to reduce the inflow of illegal immigrants should be abandoned.

rich people buy too much health care and poor people buy too little.

some resources now used in the health care industry could produce alternative goods and services that society values more highly.

health care is being purchased in amounts such that marginal benefits exceed marginal costs.

the price of health care is below equilibrium so that quantity demanded exceeds quantity supplied.

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.

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.

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.

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.

wages and hours.

union status.

seniority and job opportunities.

all of these.

the very rich establish consumption patterns that are desirable for the rest of society to emulate.

the rich buy luxury goods that soon become affordable to everyone else because of economies of scale.

income inequality is essential to maintain incentives to produce.

inequality undermines incentives and tends to reduce the size of the national income.

measures the average number of children that a woman is expected to have during her lifetime.

measures the average number of children that each couple is expected to have during their lifetime.

equals the rate of population change over time.

rises as income rises.

$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.

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.

resource market.

bond market.

stock market.

foreign exchange market.

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.

lower wage rate and hire fewer workers than will a purely competitive employer.

higher wage rate but hire fewer workers than will a purely competitive employer.

lower wage rate but hire a larger number of workers than will a purely competitive employer.

higher wage rate and hire a larger number of workers than will a purely competitive employer.

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.

labor costs and product prices are not related.

there is no discernible relationship between wage rates and labor productivity.

wage rates and labor productivity are directly related.

wage rates and labor productivity are inversely related.

a situation in which a union forces an employer to hire union workers in preference to nonunion workers.

the requirement that unneeded workers be retained on a job.

the refusal by one union to handle or transport goods produced by workers in another union.

disputes among two or more unions as to which will perform certain jobs.

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.

Temporary Assistance for Needy Households; unemployment compensation

Supplemental Security Income; unemployment compensation

Social Security; food stamps

Medicaid; Medicare

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.