Micro Eco Final Test Review

  1. Derived demand is the demand that arises because
    Demand for a resource produce a product
  2. The marginal revenue product of labor in a
    competitive market decrease as a firm increases the quantity of labor used
    because of the
    Law of diminishing returns
  3. Marginal revenue profit is the
    increase in
    • Total revenue from the use of
    • additional use of a resource
  4. Which is an example of  a change in productivity that increases labor
    • A technological change increases
    • output per worker in the computer industry thus increasing the demand for
    • computer workers
  5. Gambling increases in popularity
    thus increasing the demand for card dealers in casinos. This would be caused by
    which change in a determinate of labor demand
    Increase in product demand
  6. Which would decrease the firms
    demand for a particular resource
    • A decrease in the productivity of
    • the resource
  7. In a purely competitive industry,
    which of the following would cause a firms marginal revenue product  for an economic resource to increase
    • An increase in the demand for the
    • firms product
  8. From 2008 to 2018 it is estimated
    that there will be a fall in demand for
    Sewing machine operators
  9. From greater relative scarcity of
    heart sergeant as compared with clerical workers could be partly accounted for
    all of the following except
    • A heart sergeant derives a greater
    • level of satisfaction.
  10. According to component of human
    capital theory education,
    Increases a workers’ productivity
  11. TF  If a price of a product produced by an input
    decreases the qty demanded but not demand, the input will also decrease
  12. TF  Assume that capital and labor are
    substitutes in production, the output affect of an increase in the price of
    capital decreases the demand for labor
  13. TF A monopstis is the only seller of
    a good or service in a market area
  14. TF In demand enhancing union model, the union increases the wage rate by
    increasing labor demand through actions that increase product demand, raise
    productivity or alter the price of related inputs
  15. TF  Occupational licensing is a means
    of decreasing the supply of specific kinds of labor
  16. Which is an example of a non cash
  17. Which contributes more to the
    reduction of income inequality
    Transfer Payments
  18. Suppose that gene earns 10000 in
    year one and 100000 in year two. Jim earns 1000 year one, 10000 year 2, is
    there income inequality for the two individuals.
    • The annual data indicate
    • inequality but the two year indicate quality
  19. One of the major causes of income
    inequality is the difference in
  20. Which would be a significant cause
    of income inequality in the USA
  21. The wages and salaries that people
    earn differ partly because of differences in
  22. The flow of wages and salary earning
    along with grant interest and profits is considered
  23. A stock reflecting at a given time
    the finical and real assets an individual is
  24. Which would best be considered
    part of income
    Wages and salaries
  25. Which is a cause of growing income
    inequality in the US in the last decade
    • The widening wage gap between
    • skilled and unskilled workers
  26. TF The data from the distribution of
    personal incomes for households in the US indicates that there is a
    considerable income equality
  27. TF  About ¼ of all American households
    have annual incomes of 100000 or more
  28. TF  the distribution of personal income
    in the US is significantly more equal after taxes and transfer payments are
    taken into account.
  29. TF  During the past 35 years, the degree of income
    inequality has decreased considerably
  30. TF  Those who favor inequality in the
    distribution of income contend that it will lead to stronger incentives to work
    save and invest in thus to a greater national income and output
  31. The burden of taxes in the USA is
    • On the low end when compared to
    • the other industrial countries of the world
  32. Transfer payments are about X
    percent of US domestic output
  33. Total amount of US tax revenue
    needed to finance the public sector,
    • Is larger today as a percentage of
    • total output than the 1960
  34. The largest source of tax revenue
    in the US federal government is
    Personal income tax
  35. The largest category of federal
    spending is for
    Pensions and income security
  36. A progressive tax is such that
    • The same tax applies to all income
    • receivers so that the rich pay more taxes than the poor
  37. The ability to pay principle  of taxation
    • Suggest that the tax burden should
    • vary directly with the people’s income and wealth.
  38. Which of the following is correct
    • The federal tax system is
    • progressive while the state and local tax systems are regressive
  39. Sales and excite taxes are levied
    over retailers but retailers add these taxes in the prices of the product, This
    illustrates that
    • The ability to pay principal
    • taxation
  40. Which of the following taxes is
    the least likely to be shifted?
    Personal income tax
  41. TF  The largest source of local governments
    revenue is the sales tax
  42. TF  A tax is progressive if the
    average tax rises as income increases
  43. TF  A tax is progressive if the
    average tax rises as income increases
  44. TF  The marginal tax rate is the tax
    rate that applies to additional income
  45. TF  Benefits that receive principle of
    taxation is used to support cooperate personal income taxes
Card Set
Micro Eco Final Test Review
Eco 203 test questions