1-1
Chapter 01 Test Bank KEY
1. Because resources are scarce relative to human wants, economics is best described as
D. the set of natural laws that govern human behavior in the face of adverse conditions. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
2. Labor economics is studied as a distinct subfield of economics because
D. All of these choices are correct. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
3. The bulk of national income flows to
D. workers in the form of wages and salaries. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
4. As distinct from product market transactions, labor market transactions are unique in that
D. they are less complex. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
5. The concept of demand must be modified when applied to labor markets to reflect the fact that
D. the demand for output is derived from the demand for labor used to produce that output. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
1-2
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
D. institutions; description AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: The "Old" and the "New"
D. must have perfect information. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Economic Perspective
8. The three basic characteristics of the economic perspective are
D. prices, quantities, and incomes. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Economic Perspective
9. Which one of the following topics is most suited to macroeconomic analysis?
D. the impact of a recession on the country’s unemployment rate AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
10. Which one of the following topics is most suited to microeconomic analysis?
D. mobility and migration decisions AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
D. economics of discrimination. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
12. Nobel Laureate Gary Becker’s basic professional contribution is his
D. explanation of the limitations of the economic perspective in explaining labor markets. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
13. According to a newspaper account from Washington State, lottery winners in that state
D. were less likely to quit work the larger was the prize. AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Overview
Chapter 01 Test Bank Summary
Category
# of Questi
ons
AACSB: Reflective Thinking
13
Accessibility: Keyboard Navigation
13
Blooms: Remember
11
Blooms: Understand
2
Difficulty: 1 Easy
11
Difficulty: 2 Medium
2
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
6
Learning Objective: 01-