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Which of the following is true regarding the marginal product of labor?
a. It declines
as more capital is used.
b. It rises as the product price falls.
c. It rises as more labor is used.
d. It declines as more labor is used.
Which of the following is true?
a. Workers with more education tend to earn about the same as workers with less education.
b. Workers with more education tend to earn more, and this effect has become stronger over time.
c. Workers with more education tend to earn more, and the size of this effect has remained constant over time.
d. Workers with more education tend to earn more, but this effect has become weaker over time.
If unions become too powerful, they can reduce wages in an economy by:
a. competing among themselves for workers.
b. causing inflation rates to rise too quickly.
c. widening the gap between the wages of unionized and non-unionized workers.
d. shutting down entire industries and reducing economic efficiency.
Restrictions that make it hard for foreign medical school graduates to practice in the U.S. or that prevent nurse practitioners from competing with physicians:
a. might increase physician wages but definitely increase safety.
b. definitely increase both safety and physician wages.
c. might increase safety but definitely increase physician wages.
d. significantly increase neither safety nor physician wages.
The American Medical Association is essentially a union that attempts to:
a. restrict the supply of physicians to reduce their wages.
b. increase the supply of physicians to raise their wages.
c. restrict the supply of physicians to raise their wages.
d. increase the demand for physicians to raise their wages.
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