Question 1

Evaluate the statement: "There is no difference between the labor supply curve for the single competitive firm and the supply curve in a competitive market for labor."

Accepted Answer

The statement is incorrect. The supply c

Question 2

If you received a 4 percent increase in your nominal wage and the price level increased by 6 percent, then your real wage has increased by 2 percent.

Accepted Answer

A) True 
 B)False

Question 3

Who belongs to unions? Answer in terms of the types of industries and occupations, and the personal characteristics of workers.

Accepted Answer

The unionization rate is high in governm

Question 4

What is a bilateral monopoly? What is the economic outcome from a bilateral monopoly? Is a bilateral monopoly a bad situation for society?

Accepted Answer

A bilateral monopoly is a market in whic

Question 5

The labor supply curve facing a purely competitive firm is perfectly inelastic.

Accepted Answer

A) True 
 B)False

Question 6

Union workers have higher rates of job turnover than do nonunion workers.

Accepted Answer

A) True 
 B)False

Question 7

A firm hiring labor in a perfectly competitive labor market faces a

Accepted Answer

A) downsloping labor supply curve and upsloping labor demand curve. 
B) upsloping labor supply curve and downsloping labor demand curve. 
C) upsloping labor supply curve and horizontal labor demand curve. 
D) horizontal competitive wage curve and downsloping labor demand curve. 
A) downsloping labor supply curve and upsloping labor demand curve. 
B) upsloping labor supply curve and downsloping labor demand curve. 
C) upsloping labor supply curve and horizontal labor demand curve. 
D) horizontal competitive wage curve and downsloping labor demand curve.

Question 8

Refer to the given data. If the market wage rate is $14, this firm will employ

Accepted Answer

A) 2 workers. 
B) 4 workers. 
C) 3 workers. 
D) 5 workers. 
A) 2 workers. 
B) 4 workers. 
C) 3 workers. 
D) 5 workers.

Question 9

Marginal resource (labor)cost will always exceed the wage rate when the employer is selling its product in an imperfectly competitive market.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the given data. If the market wage rate is $8 and the firm hires its profit-maximizing number of workers, the firm's total wage bill (payment)will be

Accepted Answer

A) $16. 
B) $24. 
C) $32. 
D) $48. 
A) $16. 
B) $24. 
C) $32. 
D) $48.

Question 11

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left; exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

Accepted Answer

A) True 
 B)False

Question 12

The individual firm that hires labor under competitive conditions faces a labor supply curve that

Accepted Answer

A) slopes downward to the right. 
B) is perfectly elastic. 
C) is perfectly inelastic. 
D) is of unit elasticity. 
A) slopes downward to the right. 
B) is perfectly elastic. 
C) is perfectly inelastic. 
D) is of unit elasticity.

Question 13

The table shows labor demand data on the left and labor supply data on the right. What will be the profit-maximizing selling price of the product?

Accepted Answer

A) $1.20 
B) $1.60 
C) $1.40 
D) $1.80 
A) $1.20 
B) $1.60 
C) $1.40 
D) $1.80

Question 14

Shirking refers to the behavior of workers who provide less-than-expected effort on the job.

Accepted Answer

A) True 
 B)False

Question 15

The table shows labor demand data on the left and labor supply data on the right. The firm will maximize profits (or minimize losses)by employing

Accepted Answer

A) 2 workers. 
B) 4 workers. 
C) 5 workers. 
D) 3 workers. 
A) 2 workers. 
B) 4 workers. 
C) 5 workers. 
D) 3 workers.

Question 16

If the nominal wages of carpenters rose by 5 percent in 2019 and the price level decreased by 3 percent, then the real wages of carpenters

Accepted Answer

A) decreased by 2 percent. 
B) increased by 8 percent. 
C) increased by 2 percent. 
D) increased by 5 percent. 
A) decreased by 2 percent. 
B) increased by 8 percent. 
C) increased by 2 percent. 
D) increased by 5 percent.

Question 17

In a purely competitive labor market, a profit-maximizing firm will hire labor up to the point where the marginal resource cost equals the wage rate.

Accepted Answer

A) True 
 B)False

Question 18

What are the three different union strategies pursued to increase wages?

Accepted Answer

The three different union strategies are

Question 19

What is the difference between an exclusive union and an inclusive union?

Accepted Answer

An exclusive union is one in which a uni

Question 20

Refer to the given data. If the market wage rate is $5 and the firm hires its profit-maximizing number of workers, the firm's total revenue will exceed its total wage payment by

Accepted Answer

A) $70. 
B) $25. 
C) $45. 
D) $15. 
A) $70. 
B) $25. 
C) $45. 
D) $15.

Exam 17: Wage Determination

Evaluate the statement: "There is no difference between the labor supply curve for the single competitive firm and the supply curve in a competitive market for labor."

If you received a 4 percent increase in your nominal wage and the price level increased by 6 percent, then your real wage has increased by 2 percent.

Who belongs to unions? Answer in terms of the types of industries and occupations, and the personal characteristics of workers.

What is a bilateral monopoly? What is the economic outcome from a bilateral monopoly? Is a bilateral monopoly a bad situation for society?

The labor supply curve facing a purely competitive firm is perfectly inelastic.

Union workers have higher rates of job turnover than do nonunion workers.

A firm hiring labor in a perfectly competitive labor market faces a

Refer to the given data. If the market wage rate is $14, this firm will employ

Marginal resource (labor)cost will always exceed the wage rate when the employer is selling its product in an imperfectly competitive market.

Refer to the given data. If the market wage rate is $8 and the firm hires its profit-maximizing number of workers, the firm's total wage bill (payment)will be

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left; exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

The individual firm that hires labor under competitive conditions faces a labor supply curve that

The table shows labor demand data on the left and labor supply data on the right. What will be the profit-maximizing selling price of the product?

Shirking refers to the behavior of workers who provide less-than-expected effort on the job.

The table shows labor demand data on the left and labor supply data on the right. The firm will maximize profits (or minimize losses)by employing

If the nominal wages of carpenters rose by 5 percent in 2019 and the price level decreased by 3 percent, then the real wages of carpenters

In a purely competitive labor market, a profit-maximizing firm will hire labor up to the point where the marginal resource cost equals the wage rate.

What are the three different union strategies pursued to increase wages?

What is the difference between an exclusive union and an inclusive union?

Refer to the given data. If the market wage rate is $5 and the firm hires its profit-maximizing number of workers, the firm's total revenue will exceed its total wage payment by

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

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Pure Monopoly

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Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

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The Balance of Payments, Exchange Rates, and Trade Deficits

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