Question 1

Which change in the labor market has led to more women entering the workforce?

Accepted Answer

A)  reduction in family leave benefits 
B)  court-imposed reversals of affirmative action programs 
C)  improved telecommuting technologies 
D)  increased outsourcing of call-center jobs 
A)  reduction in family leave benefits 
B)  court-imposed reversals of affirmative action programs 
C)  improved telecommuting technologies 
D)  increased outsourcing of call-center jobs

Question 2

States that have adopted right-to-work laws

Accepted Answer

A)  have made union shops illegal. 
B)  allow union shops to dictate the rules. 
C)  allow union shops if no other union is available. 
D)  allow discriminatory practices as long as they are not noticeable. 
A)  have made union shops illegal. 
B)  allow union shops to dictate the rules. 
C)  allow union shops if no other union is available. 
D)  allow discriminatory practices as long as they are not noticeable.

Question 3

(Table) Based on the table, at what wage rate is the supply curve backward bending?
$\begin{array}{c}
\text { Labor Supply Schedule }\
\begin{array}{|c|c|}
\hline \text { Wage Rate (S/hr.) } & \text { Hours of Work (per week) } \
\hline 20 & 30 \
\hline 30 & 40 \
\hline 40 & 50 \
\hline 50 & 40 \
\hline 60 & 30 \
\hline
\end{array}
\end{array}$

Accepted Answer

A)  after $20 per hour 
B)  after $30 per hour 
C)  after $40 per hour 
D)  after $50 per hour 
A)  after $20 per hour 
B)  after $30 per hour 
C)  after $40 per hour 
D)  after $50 per hour

Question 4

Input markets are also called factor markets.

Accepted Answer

A) True 
 B)False

Question 5

The labor force participation rate is the percentage of individuals in a society who are part of the labor force.

Accepted Answer

A) True 
 B)False

Question 6

(Figure: Understanding Monopsony Markets) The graph represents a firm that is competitive in the product market but a monopsony in the input market. Which curve represents the value of the marginal product of labor?

Accepted Answer

A)  J 
B)  K 
C)  L 
D)  M 
A)  J 
B)  K 
C)  L 
D)  M

Question 7

Factors that might shift the market supply curve for an industry include all of these EXCEPT

Accepted Answer

A)  demographic changes. 
B)  nonmonetary factors. 
C)  inflation. 
D)  wages paid in other industries. 
A)  demographic changes. 
B)  nonmonetary factors. 
C)  inflation. 
D)  wages paid in other industries.

Question 8

Monopolistic exploitation of labor occurs when a monopoly hires less labor than a competitive firm and its workers are paid less than the value of their marginal products.

Accepted Answer

A) True 
 B)False

Question 9

Applegate University announces that its employees can now take college courses free of charge. This change will eventually lead to a(n)

Accepted Answer

A)  increase in labor demand. 
B)  increase in labor supply. 
C)  decrease in labor demand. 
D)  decrease in labor supply. 
A)  increase in labor demand. 
B)  increase in labor supply. 
C)  decrease in labor demand. 
D)  decrease in labor supply.

Question 10

(Figure: Labor Monopsony) The monopsony in the input market (as shown in the graph), which is also a competitive firm in the product market, would hire _____ workers.

Accepted Answer

A)  100 
B)  50 
C)  200 
D)  30 
A)  100 
B)  50 
C)  200 
D)  30

Question 11

All of these would cause a rightward shift in the labor demand curve EXCEPT a(n)

Accepted Answer

A)  increase in the demand for Chevrolets. 
B)  increase in the use of capital. 
C)  decrease in the price of other inputs. 
D)  increase in the population of Texas. 
A)  increase in the demand for Chevrolets. 
B)  increase in the use of capital. 
C)  decrease in the price of other inputs. 
D)  increase in the population of Texas.

Question 12

The elasticity of demand for labor will be more elastic in the _____ if labor's share of total production costs is _____.

Accepted Answer

A)  short run; small 
B)  short run; large 
C)  long run; large 
D)  long run; small 
A)  short run; small 
B)  short run; large 
C)  long run; large 
D)  long run; small

Question 13

What are the costs and benefits of union membership?

Accepted Answer

Without a union, each employee would hav

Question 14

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 15

Service-industry jobs generally require a lower level of training than manufacturing jobs do.

Accepted Answer

A) True 
 B)False

Question 16

If the demand for a firm's product increases, the firm's

Accepted Answer

A)  MPP will increase. 
B)  MC will increase. 
C)  MRP will increase. 
D)  VMP will decrease. 
A)  MPP will increase. 
B)  MC will increase. 
C)  MRP will increase. 
D)  VMP will decrease.

Question 17

Which factor would shift the market labor supply curve to the right?

Accepted Answer

A)  a more stringent immigration policy 
B)  a reduction in nonwage income 
C)  an increase in the market wage rate 
D)  an increase in wages in alternative jobs using the same skills 
A)  a more stringent immigration policy 
B)  a reduction in nonwage income 
C)  an increase in the market wage rate 
D)  an increase in wages in alternative jobs using the same skills

Question 18

(Figure: Determining Labor and Wages) A competitive firm will hire _____ workers, and a firm with monopoly power will hire _____ workers.

Accepted Answer

A)  L0; Lc 
B)  L0; L0 
C)  Lc; Lc 
D)  Lc; L0 
A)  L0; Lc 
B)  L0; L0 
C)  Lc; Lc 
D)  Lc; L0

Question 19

After World War II and through the Korean War, union membership constituted _____ of American workers.

Accepted Answer

A)  10% 
B)  100% 
C)  50% 
D)  33% 
A)  10% 
B)  100% 
C)  50% 
D)  33%

Question 20

A market with a single buyer or employer is known as a monopsony.

Accepted Answer

A) True 
 B)False

Which change in the labor market has led to more women entering the workforce?

States that have adopted right-to-work laws

(Table) Based on the table, at what wage rate is the supply curve backward bending? Labor Supply Schedule Wage Rate (S/hr.) Hours of Work (per week) 20 30 30 40 40 50 50 40 60 30

Input markets are also called factor markets.

The labor force participation rate is the percentage of individuals in a society who are part of the labor force.

(Figure: Understanding Monopsony Markets) The graph represents a firm that is competitive in the product market but a monopsony in the input market. Which curve represents the value of the marginal product of labor?

Factors that might shift the market supply curve for an industry include all of these EXCEPT

Monopolistic exploitation of labor occurs when a monopoly hires less labor than a competitive firm and its workers are paid less than the value of their marginal products.

Applegate University announces that its employees can now take college courses free of charge. This change will eventually lead to a(n)

(Figure: Labor Monopsony) The monopsony in the input market (as shown in the graph), which is also a competitive firm in the product market, would hire _____ workers.

All of these would cause a rightward shift in the labor demand curve EXCEPT a(n)

The elasticity of demand for labor will be more elastic in the _ if labor's share of total production costs is _.

What are the costs and benefits of union membership?

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 _.

Service-industry jobs generally require a lower level of training than manufacturing jobs do.

If the demand for a firm's product increases, the firm's

Which factor would shift the market labor supply curve to the right?

(Figure: Determining Labor and Wages) A competitive firm will hire _ workers, and a firm with monopoly power will hire _ workers.

After World War II and through the Korean War, union membership constituted _____ of American workers.

A market with a single buyer or employer is known as a monopsony.

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

Which change in the labor market has led to more women entering the workforce?

States that have adopted right-to-work laws

(Table) Based on the table, at what wage rate is the supply curve backward bending? Labor Supply Schedule Wage Rate (S/hr.) Hours of Work (per week) 20 30 30 40 40 50 50 40 60 30

Input markets are also called factor markets.

The labor force participation rate is the percentage of individuals in a society who are part of the labor force.

(Figure: Understanding Monopsony Markets) The graph represents a firm that is competitive in the product market but a monopsony in the input market. Which curve represents the value of the marginal product of labor?

Factors that might shift the market supply curve for an industry include all of these EXCEPT

Monopolistic exploitation of labor occurs when a monopoly hires less labor than a competitive firm and its workers are paid less than the value of their marginal products.

Applegate University announces that its employees can now take college courses free of charge. This change will eventually lead to a(n)

(Figure: Labor Monopsony) The monopsony in the input market (as shown in the graph), which is also a competitive firm in the product market, would hire _____ workers.

All of these would cause a rightward shift in the labor demand curve EXCEPT a(n)

The elasticity of demand for labor will be more elastic in the _____ if labor's share of total production costs is _____.

What are the costs and benefits of union membership?

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 _____.

Service-industry jobs generally require a lower level of training than manufacturing jobs do.

If the demand for a firm's product increases, the firm's

Which factor would shift the market labor supply curve to the right?

(Figure: Determining Labor and Wages) A competitive firm will hire _____ workers, and a firm with monopoly power will hire _____ workers.

After World War II and through the Korean War, union membership constituted _____ of American workers.

A market with a single buyer or employer is known as a monopsony.

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

The elasticity of demand for labor will be more elastic in the _ if labor's share of total production costs is _.

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 _.

(Figure: Determining Labor and Wages) A competitive firm will hire _ workers, and a firm with monopoly power will hire _ workers.