Question 1

A market in which a single firm hires labor, but workers compete against one another for jobs, is a bilateral monopoly.

Accepted Answer

A) True 
 B)False

Question 2

Firms pay efficiency wages because these wages:

Accepted Answer

A)  minimize short-run costs. 
B)  maximize short-run profits. 
C)  increase worker productivity. 
D)  increase worker rivalry. 
A)  minimize short-run costs. 
B)  maximize short-run profits. 
C)  increase worker productivity. 
D)  increase worker rivalry.

Question 3

Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 (Kenyan Shilling) billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder. If all coffee growers had to sell their produce to Tetu Coffee, this would be a(n):

Accepted Answer

A)  natural monopoly. 
B)  price-discriminating monopoly. 
C)  oligopoly. 
D)  monopsony. 
A)  natural monopoly. 
B)  price-discriminating monopoly. 
C)  oligopoly. 
D)  monopsony.

Question 4

Refer to the graphs shown.   If labor supply shifts from S1 to S2, the market wage rate will:

Accepted Answer

A)  increase from W0 to W1. 
B)  increase from W1 to W2. 
C)  decrease from W1 to W0. 
D)  decrease from W2 to W1. 
A)  increase from W0 to W1. 
B)  increase from W1 to W2. 
C)  decrease from W1 to W0. 
D)  decrease from W2 to W1.

Question 5

If the productivity of labor diminishes only slowly as output increases, labor:

Accepted Answer

A)  demand will most likely be inelastic. 
B)  demand will most likely be elastic. 
C)  supply will most likely be elastic. 
D)  supply will most likely be inelastic. 
A)  demand will most likely be inelastic. 
B)  demand will most likely be elastic. 
C)  supply will most likely be elastic. 
D)  supply will most likely be inelastic.

Question 6

The development of complex algorithms that perform "brain work" in the future is likely to:

Accepted Answer

A)  lengthen the overall workweek. 
B)  increase overall employment. 
C)  higher income equality. 
D)  increase the number of jobs requiring little thought. 
A)  lengthen the overall workweek. 
B)  increase overall employment. 
C)  higher income equality. 
D)  increase the number of jobs requiring little thought.

Question 7

Wages under a bilateral monopoly are generally:

Accepted Answer

A)  equal to those under monopsony. 
B)  equal to those under a union monopoly. 
C)  greater than those under monopsony but less than those under a union monopoly. 
D)  greater than those under a union monopoly but less than those under monopsony. 
A)  equal to those under monopsony. 
B)  equal to those under a union monopoly. 
C)  greater than those under monopsony but less than those under a union monopoly. 
D)  greater than those under a union monopoly but less than those under monopsony.

Question 8

If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:

Accepted Answer

A)  1/5. 
B)  1/2. 
C)  2. 
D)  5. 
A)  1/5. 
B)  1/2. 
C)  2. 
D)  5.

Question 9

The same year that Derek Jeter, one-time shortstop for the New York Yankees, received an annual salary of $23.2 million, the president of the United States received an annual salary of $400,000. Based on marginal productivity theory and assuming these markets are competitive, this salary differential indicates that:

Accepted Answer

A)  Derek Jeter contributed much more to society than did the president of the United States. 
B)  the president of the United States contributed much more to society than did Derek Jeter. 
C)  Derek Jeter and the president of the United States made equal contributions to society. 
D)  the salary differential between Derek Jeter and the president of the United States indicated that their marginal productivities cannot be compared. 
A)  Derek Jeter contributed much more to society than did the president of the United States. 
B)  the president of the United States contributed much more to society than did Derek Jeter. 
C)  Derek Jeter and the president of the United States made equal contributions to society. 
D)  the salary differential between Derek Jeter and the president of the United States indicated that their marginal productivities cannot be compared.

Question 10

If the demand for legal services decreases, the demand for legal assistants probably will:

Accepted Answer

A)  not be affected. 
B)  increase. 
C)  decrease. 
D)  change in a manner that cannot be predicted. 
A)  not be affected. 
B)  increase. 
C)  decrease. 
D)  change in a manner that cannot be predicted.

A market in which a single firm hires labor, but workers compete against one another for jobs, is a bilateral monopoly.

Firms pay efficiency wages because these wages:

Refer to the graphs shown. If labor supply shifts from S₁ to S₂, the market wage rate will:

If the productivity of labor diminishes only slowly as output increases, labor:

The development of complex algorithms that perform "brain work" in the future is likely to:

Wages under a bilateral monopoly are generally:

If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:

If the demand for legal services decreases, the demand for legal assistants probably will:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters

Exam 17: Work and the Labor Market

A market in which a single firm hires labor, but workers compete against one another for jobs, is a bilateral monopoly.

Firms pay efficiency wages because these wages:

Refer to the graphs shown. If labor supply shifts from S1 to S2, the market wage rate will:

If the productivity of labor diminishes only slowly as output increases, labor:

The development of complex algorithms that perform "brain work" in the future is likely to:

Wages under a bilateral monopoly are generally:

If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:

If the demand for legal services decreases, the demand for legal assistants probably will:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters

Refer to the graphs shown. If labor supply shifts from S₁ to S₂, the market wage rate will: