A union will ________ if it can ________.

A. raise the wage rate of its members; decrease the marginal product of its union members

B. raise the wage rate of its members; introduce minimum qualifications, which will restrict membership of the union

C. increase the number of union jobs; restrict membership of the union

D. increase the number of union jobs; increase the union wage rate

An individual’s supply of labor curve is ________. A. horizontal at the market wage rate B. upward sloping as the wage rate rises C. upward sloping at low wage rates but becomes downward sloping at high wage rates D. vertical at the standard number of hours a person works per day

A firm’s demand for labor is determined by ________. A. the market wage rate B. the price of the good that the firm produces and the wage rate it pays C. the marginal product of labor and the market wage rate D. the price of the good that the firm produces and the marginal product of labor

Why does Freeman use so many union workers? What are advantages and disadvantages of using union workers for Freeman? Describe how managing a project such as a trade show would be different if Freeman did not use union workers.

Which of the following statements is correct?

A. The closer the Lorenz curve is to the line of equality, the more unequal is the distribution of income.

B. The farther the Lorenz curve is from the line of equality, the more unequal is the distribution of income.

C. If the Lorenz curve crosses the line of equality the distribution of income is more unequal at high income levels than at low income levels.

D. The Lorenz curve for wealth is closer to the line of equality than the Lorenz curve for income

Economic inequality arises from all of the following except ________. A. inequality of human capital B. inequality of education attainment C. a shortage of high-skilled labor D. discrimination

In recent years, as the gap between the rich and the poor has increased, the Lorenz curve has ________.

A. shifted away from the line of equality

B. not changed, but there has been a movement down along it

C. shifted closer to the line of equality

D. not changed, but there has been a movement up along it

A product cost is

a. expensed in the period in which it is manufactured

b. shown with current liabilities on the balance sheet

c. shown with operating expenses on the income statement

d. expensed in the period the product is sold

Governments regulate natural monopoly by capping the price at ________.

A. marginal revenue and allowing the monopoly to maximize profit

B. marginal cost so that the monopoly is efficient and makes zero economic profit

C. average total cost, which allows the monopoly to be inefficient but make zero economic profit

D. the buyers’ willingness to pay, which makes the monopoly operate efficiently

In an advertising prisoners’ dilemma game, ________.

A. both firms will advertise and end up with lower profits than if neither advertises

B. only one firm will advertise because the other firm sees the advertising expenditure as a waste

C. the two firms agree on the total advertising budget and split it equally

D. neither firm will advertise because both realize that it lowers profit

At the shutdown point, the firm ________.

A. incurs an economic loss equal to total variable cost

B. makes zero economic profit

C. incurs a loss equal to total fixed cost

D. stops production to decrease its economic loss

If firms in oligopoly form a cartel, it will likely break down because ________.

A. firms cannot agree on how to share the economic profit

B. the price set by the cartel is too low

C. with price exceeding marginal cost, a firm might expand production to increase its profit

D. firms realize that their allocation of resources is inefficient

Conversion costs are:

a. direct materials and direct labor

b. direct materials and factory overhead c

c. factory overhead and direct labor

d. direct materials and indirect labor

Finished goods inventory is reported on the:

A. Balance sheet as a long-term asset.

B. Balance sheet as a current asset.

C. Income statement as revenue.

D. Income statement as a period cost.