Question 1The profit-maximizing firm equates the marginal benefit of labor to the marginal __________.cost of labor

production

units of labor

profit

question 2

Salaries for professions (such as architect or medical doctor) that require a long period of study are typically higher than those for other jobs. The reasons for this are all of the following EXCEPT __________.

students sacrifice a good deal of present income

status deserves more reward in the form of wages

long periods of schooling incur greater current costs

future income is worth less than present income

question 3

The demand for labor has three features. Which of the following is NOT one of those features?

talent and efficiency demand

interdependent demand

technologically determined demand

derived demand

question 4

If paying living expenses for a foster child in New York City makes the Iowan Reynolds family feel better, the child and the family have __________.

regional interdependencies

egalitarian philosophy and goals

interdependent utility functions

independent utility functions

question 5

Jonas is an elderly person living in poverty in rural Georgia. He is more likely to benefit from a redistribution policy that __________.

depends on productivity

is based on equality of results

seeks equality of opportunity

encourages economic growth

question 6

Jonas is an elderly person living in poverty in rural Georgia. He is more likely to benefit from a redistribution policy that __________.

depends on productivity

is based on equality of results

seeks equality of opportunity

encourages economic growth

question 7

Monopoly rent seeking is a(n) __________.

benefit to society

efficient allocation of resources

advantage for large corporations

extra cost of monopoly

question 8

The "rent" involved in rent seeking __________.

represents a transfer from producer to consumer

represents a transfer from producer to government

is artificially created by a government or quasigovernment unit

is artificially created by a monopoly or oligopoly

question 9

In public choice theory, what assumption is made regarding the private market?

The private market never fails; thus, there is no need for government intervention.

The private market may fail, but the government may also fail in attempting to correct the problem.

The private market may fail, but government will always improve the outcome.

The private market and the government both encourage public interest rather than self-interest.

question 10

Public choice theory suggests that voters are more likely to adopt proposals with long-delayed benefits if the __________.

benefits favor one region over another, so that there is the opportunity for logrolling

benefits are dispersed rather than concentrated

costs can be delayed or concealed

costs are presented as present values