Question 1

Due to an increase in the market wage rate for restaurant waiters, the supply of such waiters has

Accepted Answer

A)  decreased. 
B)  not changed. 
C)  increased. 
D)  decreased in elasticity. 
A)  decreased. 
B)  not changed. 
C)  increased. 
D)  decreased in elasticity.

Question 2

Which of these is NOT an example of a craft union?

Accepted Answer

A)  Pipe Fitter's Union 
B)  PATCO 
C)  Carpenter's Union 
D)  United Steel Workers 
A)  Pipe Fitter's Union 
B)  PATCO 
C)  Carpenter's Union 
D)  United Steel Workers

Question 3

(Table: Labor and Quantity of Output) The table shows the production function for a firm using a given amount of capital. If the price of the product is $15 each, how many workers would the firm employ if the wage per worker is $90?
$\begin{array}{|c|c|}
\hline \text { Units of Labor } & \begin{array}{c}
\text { Quantity of } \
\text { Output }
\end{array} \
\hline 1 & 20 \
\hline 2 & 28 \
\hline 3 & 35 \
\hline 4 & 41 \
\hline 5 & 44 \
\hline 6 & 35 \
\hline
\end{array}$

Accepted Answer

A)  six workers 
B)  five workers 
C)  four workers 
D)  three workers 
A)  six workers 
B)  five workers 
C)  four workers 
D)  three workers

Question 4

A(n) _____ shop is a workplace in which workers do not have to be union members to be hired but must join the union within 30 days.

Accepted Answer

A)  closed 
B)  union 
C)  agency 
D)  secondary boycott 
A)  closed 
B)  union 
C)  agency 
D)  secondary boycott

Question 5

One of the reasons that competition may fail to eliminate gender wage discrimination is

Accepted Answer

A)  a mobile workforce. 
B)  lack of mobility. 
C)  the cost of general training. 
D)  the cost of specific training. 
A)  a mobile workforce. 
B)  lack of mobility. 
C)  the cost of general training. 
D)  the cost of specific training.

Question 6

If a firm seeks additional workers in a competitive labor market, then that firm

Accepted Answer

A)  is a price taker. 
B)  can reduce wages if it is experiencing business difficulties. 
C)  can influence wages if it hires many workers. 
D)  can influence wages if it lays off workers. 
A)  is a price taker. 
B)  can reduce wages if it is experiencing business difficulties. 
C)  can influence wages if it hires many workers. 
D)  can influence wages if it lays off workers.

Question 7

Benefits of union membership include all of these EXCEPT

Accepted Answer

A)  collective bargaining power. 
B)  flexible job descriptions. 
C)  greater job security. 
D)  protection from arbitrary management decisions. 
A)  collective bargaining power. 
B)  flexible job descriptions. 
C)  greater job security. 
D)  protection from arbitrary management decisions.

Question 8

Compare an individual's labor supply with the market labor supply. Show how each is depicted graphically.

Accepted Answer

The individual labor supply is determine

Question 9

Outline some U.S. legislation intended to reduce discrimination in the labor market.

Accepted Answer

The Equal Pay Act of 1963 (which amended

Question 10

Suppose that a law passes that causes working conditions throughout the economy to improve. The labor supply curve should shift ____, and the number of workers available at any given wage rate will _____.

Accepted Answer

A)  left; decrease 
B)  left; increase 
C)  right; decrease 
D)  right; increase 
A)  left; decrease 
B)  left; increase 
C)  right; decrease 
D)  right; increase

Question 11

If Congress were to increase the minimum age at which people can receive Social Security benefits by five years, it would be expected that

Accepted Answer

A)  equilibrium wage rates would rise. 
B)  fewer workers would want to obtain a college education. 
C)  the supply of labor would increase. 
D)  the demand for workers would rise. 
A)  equilibrium wage rates would rise. 
B)  fewer workers would want to obtain a college education. 
C)  the supply of labor would increase. 
D)  the demand for workers would rise.

Question 12

In an agency shop, workers benefit from the presence of a union even if they are nonmembers.

Accepted Answer

A) True 
 B)False

Question 13

Which of these is NOT a characteristic of a competitive labor market?

Accepted Answer

A)  Information is widely available and accurate. 
B)  Firms are price makers. 
C)  No employee is considered special or unique. 
D)  There is easy entry into and exit from the market. 
A)  Information is widely available and accurate. 
B)  Firms are price makers. 
C)  No employee is considered special or unique. 
D)  There is easy entry into and exit from the market.

Question 14

The _____ amended the Fair Labor Standards Act and requires that men and women receive equal pay for equal work.

Accepted Answer

A)  Equal Pay Act 
B)  Civil Rights Act 
C)  Fair Labor Standards Act 
D)  Executive Order 11246-Affirmative Action 
A)  Equal Pay Act 
B)  Civil Rights Act 
C)  Fair Labor Standards Act 
D)  Executive Order 11246-Affirmative Action

Question 15

All of these statements about pension trends are true EXCEPT

Accepted Answer

A)  many companies stopped offering pension plans because average life expectancy of retirees has increased. 
B)  tightening state and local government budgets have made it more difficult to fulfill long-term pension obligations to public employees. 
C)  defined contribution plans-such as a 401K-provide retirees with more financial security than the pension plans that they replaced. 
D)  some cities have declared bankruptcy and became unable to honor their pension commitments. 
A)  many companies stopped offering pension plans because average life expectancy of retirees has increased. 
B)  tightening state and local government budgets have made it more difficult to fulfill long-term pension obligations to public employees. 
C)  defined contribution plans-such as a 401K-provide retirees with more financial security than the pension plans that they replaced. 
D)  some cities have declared bankruptcy and became unable to honor their pension commitments.

Question 16

Union membership in the United States rose significantly during the

Accepted Answer

A)  1940s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
A)  1940s. 
B)  1960s. 
C)  1970s. 
D)  1980s.

Question 17

Everything else held constant, there has been a decrease in the wage differential between men and women. A possible explanation for this could be a(n)

Accepted Answer

A)  increase in the demand for male-dominated jobs. 
B)  decrease in the demand for female-dominated jobs. 
C)  decrease in the demand for male-dominated jobs and an increase in the demand for female-dominated jobs. 
D)  decrease in the demand for male-dominated jobs and a decrease in the demand for female-dominated jobs. 
A)  increase in the demand for male-dominated jobs. 
B)  decrease in the demand for female-dominated jobs. 
C)  decrease in the demand for male-dominated jobs and an increase in the demand for female-dominated jobs. 
D)  decrease in the demand for male-dominated jobs and a decrease in the demand for female-dominated jobs.

Question 18

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal

Accepted Answer

A)  revenue equals marginal cost. 
B)  revenue equals the product price. 
C)  physical product of labor equals the wage rate. 
D)  physical product of labor equals the product price. 
A)  revenue equals marginal cost. 
B)  revenue equals the product price. 
C)  physical product of labor equals the wage rate. 
D)  physical product of labor equals the product price.

Question 19

Since a monopsony has a positively sloped supply curve, the MFC curve will always lie above the supply curve.

Accepted Answer

A) True 
 B)False

Question 20

Which of these does NOT describe the trend of labor markets over the past 50 years?

Accepted Answer

A)  an increase in labor force participation by women 
B)  a shift from manufacturing to service sector jobs 
C)  an increase in trade protectionism policies to restrict outsourcing of jobs 
D)  a greater reliance on real-time production methods 
A)  an increase in labor force participation by women 
B)  a shift from manufacturing to service sector jobs 
C)  an increase in trade protectionism policies to restrict outsourcing of jobs 
D)  a greater reliance on real-time production methods

Due to an increase in the market wage rate for restaurant waiters, the supply of such waiters has

Which of these is NOT an example of a craft union?

(Table: Labor and Quantity of Output) The table shows the production function for a firm using a given amount of capital. If the price of the product is $15 each, how many workers would the firm employ if the wage per worker is $90? Units of Labor Quantity of Output 1 20 2 28 3 35 4 41 5 44 6 35

A(n) _____ shop is a workplace in which workers do not have to be union members to be hired but must join the union within 30 days.

One of the reasons that competition may fail to eliminate gender wage discrimination is

If a firm seeks additional workers in a competitive labor market, then that firm

Benefits of union membership include all of these EXCEPT

Compare an individual's labor supply with the market labor supply. Show how each is depicted graphically.

Outline some U.S. legislation intended to reduce discrimination in the labor market.

Suppose that a law passes that causes working conditions throughout the economy to improve. The labor supply curve should shift , and the number of workers available at any given wage rate will _.

If Congress were to increase the minimum age at which people can receive Social Security benefits by five years, it would be expected that

In an agency shop, workers benefit from the presence of a union even if they are nonmembers.

Which of these is NOT a characteristic of a competitive labor market?

The _____ amended the Fair Labor Standards Act and requires that men and women receive equal pay for equal work.

All of these statements about pension trends are true EXCEPT

Union membership in the United States rose significantly during the

Everything else held constant, there has been a decrease in the wage differential between men and women. A possible explanation for this could be a(n)

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal

Since a monopsony has a positively sloped supply curve, the MFC curve will always lie above the supply curve.

Which of these does NOT describe the trend of labor markets over the past 50 years?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

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Exam 11: The Labor Market

Due to an increase in the market wage rate for restaurant waiters, the supply of such waiters has

Which of these is NOT an example of a craft union?

(Table: Labor and Quantity of Output) The table shows the production function for a firm using a given amount of capital. If the price of the product is $15 each, how many workers would the firm employ if the wage per worker is $90? Units of Labor Quantity of Output 1 20 2 28 3 35 4 41 5 44 6 35

A(n) _____ shop is a workplace in which workers do not have to be union members to be hired but must join the union within 30 days.

One of the reasons that competition may fail to eliminate gender wage discrimination is

If a firm seeks additional workers in a competitive labor market, then that firm

Benefits of union membership include all of these EXCEPT

Compare an individual's labor supply with the market labor supply. Show how each is depicted graphically.

Outline some U.S. legislation intended to reduce discrimination in the labor market.

Suppose that a law passes that causes working conditions throughout the economy to improve. The labor supply curve should shift ____, and the number of workers available at any given wage rate will _____.

If Congress were to increase the minimum age at which people can receive Social Security benefits by five years, it would be expected that

In an agency shop, workers benefit from the presence of a union even if they are nonmembers.

Which of these is NOT a characteristic of a competitive labor market?

The _____ amended the Fair Labor Standards Act and requires that men and women receive equal pay for equal work.

All of these statements about pension trends are true EXCEPT

Union membership in the United States rose significantly during the

Everything else held constant, there has been a decrease in the wage differential between men and women. A possible explanation for this could be a(n)

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal

Since a monopsony has a positively sloped supply curve, the MFC curve will always lie above the supply curve.

Which of these does NOT describe the trend of labor markets over the past 50 years?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Elasticity

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters

Suppose that a law passes that causes working conditions throughout the economy to improve. The labor supply curve should shift , and the number of workers available at any given wage rate will _.