Economics Multiple Choice Questions and Answers for Practice

16. In price discrimination, which section of the market is charged the higher price?

1. the section with the richest people
2. the section with the oldest people
3. the section with the most inelastic demand
4. the section with the most elastic demand

17. The demand for labor is the same as the

1. marginal revenue product
2. marginal physical product
3. marginal cost
4. wage

18. The demand for labor slopes down and to the right because of

1. the law of demand
2. the iron law of wages
3. the law of diminishing marginal returns
4. economies of scale

19. The demand for labor will be more elastic if:

1. there are few substitutes for labor
2. there is a short time under consideration
3. labor is a large percent of the total cost of production
4. the demand for the product is relatively inelastic

20. Skills that can be transferred to other employers are called:

1. general skills
2. specific skills
3. non-pecuniary skills
4. all of the above

21. Which skills are most likely to be paid for by the employer?

1. General skills
2. Specific skills
3. Educational skills

22. If worker A earns more in wages than worker B, it could be because:

1. The product made by worker A sells for a higher price than that made by worker B
2. Worker A uses more capital per worker than worker B
3. Worker A has more natural ability than worker B
4. All of the above

23. Skills that embodied in a person are called

1. Human capital
2. Embodied skills
3. Physical capital
4. Experience skills

24. Treating an individual as typical of a group is the definition of

1. pure discrimination
2. statistical discrimination
3. human capital
4. specific skills