A. output demand
B. indirect demand
C. derived demand
D. the value of the marginal product of auto workers.
Economics Mcqs
The substitution effect of higher wages suggests that as the wage rate increases ?
A. leisure becomes less expensive and households buy more of it
B. leisure becomes more expensive and households buy more of it
C. leisure becomes more expensive and households buy less of it
D. leisure becomes less expensive and households buy less of it.
If the income effect is smaller than the substitution effect, higher net wages will ?
A. reduce the supply of labour.
B. increase the demand for labour
C. increase the supply of labour
D. have no effect on the supply of labour
Differences in wages that result from differences in working conditions are known as ?
A. occupational differentials
B. search differentials
C. job differentials.
D. compensating differentials
In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?
A. total labour cost
B. the marginal product
C. the price of the product
D. the wage rate
The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?
A. MPL + PX
B. (MPL) (PX)
C. PX/MPL
D. MPL/PX
An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?
A. the Rs500 weekly salary that he has forgone to search for another job
B. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
C. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone
D. Rs0, since he is currently unemployed
If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then ?
A. wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be
B. the wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be
C. both the wages and the marginal productivity of men will be lower than they otherwise would be
D. both the wages and the marginal productivity of men will be higher than they otherwise would be
The term ‘rent’ as it is used by economists. refers to ?
A. the return to any factor of production that is in fixed supply
B. the profit earned by the owner of any housing unit.
C. the amount paid each year by a tenant for an apartment
D. any profit earned by stockholders when they sell their stock
The Gini coefficient is ?
A. the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families
B. the most common way of representing the income distribution graphically
C. a commonly used measure of the degree of inequality in an income distribution
D. a commonly used measure of the degree of inequity in an income distribution