Test Bank For Contemporary Labor Economics Campbell McConnell 11th Edition

Chapter 01 Test Bank KEY

1. Because resources are scarce relative to human wants, economics is best described as
2. the science of allocating productive resources fairly.
3. a science of choice.
4. the science of allocating goods and services fairly.
5. 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
3. the bulk of national income is received by labor.
4. the concepts of supply and demand must be revised somewhat when applied to labor markets.
5. labor economics can be used to analyze major socioeconomic trends such as the surge in the number of women workers.
6. 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
4. landowners in the form of rent.
5. capital owners in the form of interest.
6. capital owners in the form of profit.
7. 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
5. to the seller, the nonmonetary characteristics of the sale can be as important as the price.
6. labor demand curves slope upward.
7. the price of labor is not determined by supply and demand factors.
8. 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
6. nonmonetary characteristics of jobs may be as important to workers as their pay.
7. labor demand curves slope upward from left to right.
8. the demand for labor is derived from the demand for the various products that labor produces.
9. the demand for output is derived from the demand for labor used to produce that output.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember