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


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


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


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


bhave no impact on labour market discrimination


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


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



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


aminimum-wage laws


befficiency wages


cunions


dbeauty


View Answer beauty

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


aMen have more human capital than women


b Employers in competitive markets are bigots


cMen have more job experience than women


d None of the above



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


amarginal revenue, marginal cost


b long run marginal revenue, long run marginal cost


clabor output ratio, capital output ratio


dmarginal cost of labor, marginal revenue product



Top footballers tend to earn more than lecturers because ?


a footballers give more entertainment


blecturers are lazy


cthe labor markets are imperfect


dtop footballers are relatively scarce in relation to lecturers



Skilled labor is relatively scarce because ?


athere are too few teachers


btoo few student places in higher education


cit is costly to acquire human capital


dteachers’ salaries are too low



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


aincrease the wage, increase employment


bmaintain the wage, increase employment


cincrease the wage, lower employment


d maintain the wage, lower employment



Involuntary unemployment exists if workers ?


awill not work at the offered wage


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


cwill not work because the hours are anti-social


d Are not prepared to move house to get the job



The difference between gross investment and net investment is ?


adepreciation of the existing capital stock


bproductive investment


cdwellings


dinventories



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