Economics MCQs

Page No. 215

In order for a market to support superstars it must have which of the following characteristics ?


aIt must be involved in professional athletics

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b Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

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cEvery customer must be willing to pay an enormous amount for the product and the product must be a necessity

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dEvery customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost

✓



Competitive markets tend to ?


aIncrease labor market discrimination because some workers can charge more for their services than other workers in a competitive market

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bhave no impact on labour market discrimination

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c reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market

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d increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination

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Which of the following is not a reason why some workers are paid above the equilibrium wage ?


aminimum-wage laws

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befficiency wages

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cunions

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dbeauty

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View Answer beauty

Which of the following explanations of wage differentials is not likely to be true ?


aMen have more human capital than women

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b Employers in competitive markets are bigots

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cMen have more job experience than women

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d None of the above

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A profit-maximizing firm will hire labour until _____ equals the _______?


amarginal revenue, marginal cost

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b long run marginal revenue, long run marginal cost

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clabor output ratio, capital output ratio

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dmarginal cost of labor, marginal revenue product

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Top footballers tend to earn more than lecturers because ?


a footballers give more entertainment

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blecturers are lazy

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cthe labor markets are imperfect

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dtop footballers are relatively scarce in relation to lecturers

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Skilled labor is relatively scarce because ?


athere are too few teachers

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btoo few student places in higher education

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cit is costly to acquire human capital

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dteachers’ salaries are too low

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By restricting labor supply a trade union can _____ and _______?


aincrease the wage, increase employment

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bmaintain the wage, increase employment

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cincrease the wage, lower employment

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d maintain the wage, lower employment

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Involuntary unemployment exists if workers ?


awill not work at the offered wage

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bwould work at the going wage but can’t find jobs

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cwill not work because the hours are anti-social

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d Are not prepared to move house to get the job

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The difference between gross investment and net investment is ?


adepreciation of the existing capital stock

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bproductive investment

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cdwellings

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dinventories

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