Question 1

The best example of an industrial union is the

Accepted Answer

A)   United Association of Plumbers and Pipefitters.
B)   International Brotherhood of Electrical Workers.
C)   American Medical Association.
D)   United Auto Workers.

Question 2

If the supply of labor in a purely competitive labor market increases, then the product

Accepted Answer

A)   supply curve for a single employer will shift to the right.
B)   supply curve for a single employer will shift to the left.
C)   demand curve for a single employer will shift to the right.
D)   demand curve for a single employer will shift to the left.

Question 3

Which of the following has not been a major factor contributing to the high productivity of labor in the United States?

Accepted Answer

A)   high wage rates
B)   technological advancement
C)   education and training of workers
D)   high levels of capital investment

Question 4

If a firm is hiring variable resources D and F in imperfectly competitive input markets, it will maximize profits by employing D and F in such quantifies that

Accepted Answer

A)   MRPD/MRC⁡D=MRPF/MRCF=1\mathrm{MRP} D / \operatorname{MRC} D=\mathrm{MRP} F / \mathrm{MRC} F=1MRPD/MRCD=MRPF/MRCF=1 
B)   MRPD / MRCD = MRPF / MRCF.
C)   MRPD / PD = MRPF / PF = 1.
D)   MRPD / PD = MRPF / PF.

Question 5

Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of

Accepted Answer

A)   total output.
B)   stock of capital.
C)   output per worker.
D)   international trade.

Question 6

Craft unions

Accepted Answer

A)   attempt to organize workers at all skill levels in a firm or industry.
B)   have been declared illegal by federal legislation.
C)   only organize workers who have a particular set of skills.
D)   attempt to increase the supply of their particular type of labor.

Question 7

Which action taken by a worker would not be an investment in human capital?

Accepted Answer

A)   enrolling in college
B)   enrolling in trade school
C)   purchasing exercise equipment
D)   purchasing stock in a pharmaceutical company

Question 8

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

Accepted Answer

A)   decrease by 6 percent.
B)   decrease by 4 percent.
C)   decrease by 2 percent.
D)   increase by 2 percent.

Question 9

A characteristic of a purely competitive labor market would be

Accepted Answer

A)   "price-maker" behavior by the workers.
B)   "wage-taker" behavior by workers.
C)   many firms selling the same product.
D)   many workers with different skills.

Question 10

Data on education and earnings reveal

Accepted Answer

A)   negative age-earnings profiles for male workers.
B)   no relationship between the two.
C)   a positive relationship between the two.
D)   a negative relationship between the two.

Question 11

Craft unions have typically been most effective in raising wage rates by

Accepted Answer

A)   legislating a minimum wage rate above the competitive equilibrium level.
B)   increasing the demand for labor of union members.
C)   decreasing the supply of labor through licensing and training requirements.
D)   organizing all of the employees in a factory or industry and demanding wage hikes.

Question 12

W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by

Accepted Answer

A)   1.
B)   2.
C)   3.
D)   4.

Question 13

If a firm must pay a daily wage of $35 to hire 11 workers and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the 12th worker is $40.

Accepted Answer

A) True 
 B)False

Question 14

Industrial unions are more likely to increase wage rates by restricting the supply of labor than are craft unions.

Accepted Answer

A) True 
 B)False

Question 15

In a labor dispute in which the existing contract has expired, a

Accepted Answer

A)   firm can legally lock up unruly workers.
B)   firm can legally lock out union workers.
C)   union can legally restrict customer access to the firm.
D)   union can legally restrict physical access by management to the firm.

Question 16

Compensating differences in wages pay workers for

Accepted Answer

A)   differences in worker training and skills.
B)   differences in the nonmonetary characteristics of jobs.
C)   geographic immobility.
D)   discrimination in hiring and firing.

Question 17

Exclusive unionism has the economic effect of

Accepted Answer

A)   strengthening the bargaining position of an industrial union.
B)   weakening the bargaining position of a craft union.
C)   decreasing the supply of labor.
D)   increasing the demand for labor.

Question 18

The electricians' union is a good example of

Accepted Answer

A)   exclusive unionism.
B)   an industrial union.
C)   how unions can simultaneously increase wage rates and employment by increasing the demand for labor.
D)   inclusive unionism.

Question 19

Which of the following bargaining tactics is illegal?

Accepted Answer

A)   a lockout
B)   a strike
C)   refusal to meet with union representatives
D)   hiring strikebreakers

Question 20

A bilateral monopoly case is a situation where a firm is a monopolist in its product market and is also a monopsonist in the market where it acquires its major resource.

Accepted Answer

A) True 
 B)False

Exam 17: Wage Determination

A bilateral monopoly case is a situation where a firm is a monopolist in its product market and is also a monopsonist in the market where it acquires its major resource.

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If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

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Which of the following bargaining tactics is illegal?

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Data on education and earnings reveal

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A characteristic of a purely competitive labor market would be

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Exclusive unionism has the economic effect of

Correct AnswerverifiedShow Answer

W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by

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Craft unions

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Which action taken by a worker would not be an investment in human capital?

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If a firm is hiring variable resources D and F in imperfectly competitive input markets, it will maximize profits by employing D and F in such quantifies that

Correct AnswerverifiedShow Answer

In a labor dispute in which the existing contract has expired, a

Correct AnswerverifiedShow Answer

If a firm must pay a daily wage of $35 to hire 11 workers and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the 12th worker is $40.

Correct AnswerverifiedShow Answer

If the supply of labor in a purely competitive labor market increases, then the product

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Compensating differences in wages pay workers for

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Which of the following has not been a major factor contributing to the high productivity of labor in the United States?

Correct AnswerverifiedShow Answer

The best example of an industrial union is the

Correct AnswerverifiedShow Answer

Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of

Correct AnswerverifiedShow Answer

The electricians' union is a good example of

Correct AnswerverifiedShow Answer

Craft unions have typically been most effective in raising wage rates by

Correct AnswerverifiedShow Answer

Industrial unions are more likely to increase wage rates by restricting the supply of labor than are craft unions.

Correct AnswerverifiedShow Answer

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