Question 1

Union membership tends to increase labor demand, leading to higher wages for union members.

Accepted Answer

A) True 
 B)False

Question 2

Which three states are known for having governors who have wished to restrict the power of public employee unions?

Accepted Answer

A)  California, New Jersey, and Wisconsin 
B)  California, Ohio, and New Jersey 
C)  New York, Ohio, and New Jersey 
D)  New Jersey, Ohio, and Wisconsin 
A)  California, New Jersey, and Wisconsin 
B)  California, Ohio, and New Jersey 
C)  New York, Ohio, and New Jersey 
D)  New Jersey, Ohio, and Wisconsin

Question 3

(Table) Based on the table, if the wage rate is $75, how many workers should this firm hire?
$\begin{array}{|c|c|c|c|}
\hline \text { Units of Labor } & \begin{array}{c}
\text { Quantity of } \
\text { Output }
\end{array} & \text { Product Price } & \begin{array}{c}
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 20 & \$ 10 & \
\hline 2 & 28 & 10 & \text { A } \
\hline 3 & 35 & 10 & \text { B } \
\hline 4 & 41 & 10 & \text { C } \
\hline 5 & \text { D } & 10 & \$ 30 \
\hline 6 & 35 & 10 & \
\hline
\end{array}$

Accepted Answer

A)  1 worker 
B)  2 workers 
C)  3 workers 
D)  4 workers 
A)  1 worker 
B)  2 workers 
C)  3 workers 
D)  4 workers

Question 4

If labor's share of the total cost is small, then the demand for labor tends to be rather elastic.

Accepted Answer

A) True 
 B)False

Question 5

Jessica learned that she must pay union dues even though she is not a part of the union. Her workplace is a(n) _____ shop.

Accepted Answer

A)  closed 
B)  union 
C)  open 
D)  agency 
A)  closed 
B)  union 
C)  open 
D)  agency

Question 6

(Figure: Labor Supply Curve) Based on the graph, the substitution effect is shown by segment

Accepted Answer

A)  ab. 
B)  ac. 
C)  bc. 
D)  abc. 
A)  ab. 
B)  ac. 
C)  bc. 
D)  abc.

Question 7

The demand for labor that arises from consumer demand for the firm's product and the productivity of labor is called _____ demand.

Accepted Answer

A)  secondary 
B)  primary 
C)  derived 
D)  direct 
A)  secondary 
B)  primary 
C)  derived 
D)  direct

Question 8

When a labor market is imperfect due to market power by a firm, the result in that market typically is _____ their marginal value.

Accepted Answer

A)  fewer workers hired at a wage below 
B)  fewer workers hired at a wage above 
C)  more workers hired than in a competitive market, at a wage below 
D)  more workers hired than in a competitive market, at a wage above 
A)  fewer workers hired at a wage below 
B)  fewer workers hired at a wage above 
C)  more workers hired than in a competitive market, at a wage below 
D)  more workers hired than in a competitive market, at a wage above

Question 9

(Table) The amount of labor and corresponding output are provided in the table. The price per unit of output is $11.50. The wage paid per day is $115. To maximize economic profit, how many people should the firm hire?
$\begin{array}{|c|c|}
\hline \text { Labor } & \text { Output } \
\hline 0 & 0 \
\hline 1 & 7 \
\hline 2 & 19 \
\hline 3 & 34 \
\hline 4 & 47 \
\hline 5 & 57 \
\hline
\end{array}$

Accepted Answer

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

Question 10

An increase in demand for a firm's product will lead to a lower MRPL.

Accepted Answer

A) True 
 B)False

Question 11

Reece Inc. has just discovered that the marginal revenue product generated by the last worker hired was $120, while the marginal factor cost was $90. What should Reece Inc. do?

Accepted Answer

A)  It should reduce the amount produced. 
B)  It should collect more information before making a decision. 
C)  It should leave the level of production unchanged. 
D)  It should increase the amount of labor hired. 
A)  It should reduce the amount produced. 
B)  It should collect more information before making a decision. 
C)  It should leave the level of production unchanged. 
D)  It should increase the amount of labor hired.

Question 12

Which antidiscrimination act was signed first?

Accepted Answer

A)  Civil Rights Act 
B)  Lily Ledbetter Act 
C)  Age Discrimination in Employment Act 
D)  Equal Pay Act 
A)  Civil Rights Act 
B)  Lily Ledbetter Act 
C)  Age Discrimination in Employment Act 
D)  Equal Pay Act

Question 13

The _____ splits the labor market into primary and secondary sectors.

Accepted Answer

A)  dual labor market hypothesis 
B)  job crowding hypothesis 
C)  insider-outsider theory 
D)  efficient markets theory 
A)  dual labor market hypothesis 
B)  job crowding hypothesis 
C)  insider-outsider theory 
D)  efficient markets theory

Question 14

Which of these acts or policies was MOST favorable to the growth of unions?

Accepted Answer

A)  Taft-Hartley Act 
B)  yellow-dog contracts 
C)  Wagner Act 
D)  right-to-work laws 
A)  Taft-Hartley Act 
B)  yellow-dog contracts 
C)  Wagner Act 
D)  right-to-work laws

Question 15

Costs of union membership include all of these EXCEPT

Accepted Answer

A)  lost wages during a strike. 
B)  required union dues. 
C)  greater exposure to work rules. 
D)  less job security. 
A)  lost wages during a strike. 
B)  required union dues. 
C)  greater exposure to work rules. 
D)  less job security.

Question 16

In the United States, it is illegal for a company to restrict hiring to only workers who have already joined a union.

Accepted Answer

A) True 
 B)False

Question 17

Which piece of legislation is also known as the National Labor Relations Act?

Accepted Answer

A)  Norris-LaGuardia Act 
B)  Taft-Hartley Act 
C)  Wagner Act 
D)  Executive Order 10988 
A)  Norris-LaGuardia Act 
B)  Taft-Hartley Act 
C)  Wagner Act 
D)  Executive Order 10988

Question 18

(Table) Based on the table, if the wage rate is $25, how many workers should this firm hire?
$\begin{array}{|c|c|c|c|}
\hline \text { Units of Labor } & \begin{array}{c}
\text { Quantity of } \
\text { Output }
\end{array} & \text { Product Price } & \begin{array}{c}
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 20 & \$ 10 & \
\hline 2 & 28 & 10 & \text { A } \
\hline 3 & 35 & 10 & \text { B } \
\hline 4 & 41 & 10 & \text { C } \
\hline 5 & \text { D } & 10 & \$ 30 \
\hline 6 & 35 & 10 & \
\hline
\end{array}$

Accepted Answer

A)  3 workers 
B)  4 workers 
C)  5 workers 
D)  6 workers 
A)  3 workers 
B)  4 workers 
C)  5 workers 
D)  6 workers

Question 19

Which legislative act MOST directly addresses wage inequality based on gender?

Accepted Answer

A)  Civil Rights Act 
B)  Affirmative Action 
C)  Lily Ledbetter Act 
D)  Equality Act 
A)  Civil Rights Act 
B)  Affirmative Action 
C)  Lily Ledbetter Act 
D)  Equality Act

Question 20

(Figure: Labor Supply Curve) Based on the graph, we see that this person is willing to supply _____ hours of labor at wage rate W1 than at W2 and _____ hours of labor at wage rate W3 than at W2.

Accepted Answer

A)  more; more 
B)  more; fewer 
C)  fewer; fewer 
D)  fewer; more 
A)  more; more 
B)  more; fewer 
C)  fewer; fewer 
D)  fewer; more

Union membership tends to increase labor demand, leading to higher wages for union members.

Which three states are known for having governors who have wished to restrict the power of public employee unions?

(Table) Based on the table, if the wage rate is $75, how many workers should this firm hire? Units of Labor Quantity of Output Product Price Marginal Revenue Product 1 20 \ 10 2 28 10 A 3 35 10 B 4 41 10 C 5 D 10 \ 30 6 35 10

If labor's share of the total cost is small, then the demand for labor tends to be rather elastic.

Jessica learned that she must pay union dues even though she is not a part of the union. Her workplace is a(n) _____ shop.

(Figure: Labor Supply Curve) Based on the graph, the substitution effect is shown by segment

The demand for labor that arises from consumer demand for the firm's product and the productivity of labor is called _____ demand.

When a labor market is imperfect due to market power by a firm, the result in that market typically is _____ their marginal value.

(Table) The amount of labor and corresponding output are provided in the table. The price per unit of output is $11.50. The wage paid per day is $115. To maximize economic profit, how many people should the firm hire? Labor Output 0 0 1 7 2 19 3 34 4 47 5 57

An increase in demand for a firm's product will lead to a lower MRP_L.

Reece Inc. has just discovered that the marginal revenue product generated by the last worker hired was $120, while the marginal factor cost was $90. What should Reece Inc. do?

Which antidiscrimination act was signed first?

The _____ splits the labor market into primary and secondary sectors.

Which of these acts or policies was MOST favorable to the growth of unions?

Costs of union membership include all of these EXCEPT

In the United States, it is illegal for a company to restrict hiring to only workers who have already joined a union.

Which piece of legislation is also known as the National Labor Relations Act?

(Table) Based on the table, if the wage rate is $25, how many workers should this firm hire? Units of Labor Quantity of Output Product Price Marginal Revenue Product 1 20 \ 10 2 28 10 A 3 35 10 B 4 41 10 C 5 D 10 \ 30 6 35 10

Which legislative act MOST directly addresses wage inequality based on gender?

(Figure: Labor Supply Curve) Based on the graph, we see that this person is willing to supply _ hours of labor at wage rate W₁ than at W₂ and _ hours of labor at wage rate W₃ than at W₂.

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

Exam 11: The Labor Market

Union membership tends to increase labor demand, leading to higher wages for union members.

Which three states are known for having governors who have wished to restrict the power of public employee unions?

(Table) Based on the table, if the wage rate is $75, how many workers should this firm hire? Units of Labor Quantity of Output Product Price Marginal Revenue Product 1 20 \ 10 2 28 10 A 3 35 10 B 4 41 10 C 5 D 10 \ 30 6 35 10

If labor's share of the total cost is small, then the demand for labor tends to be rather elastic.

Jessica learned that she must pay union dues even though she is not a part of the union. Her workplace is a(n) _____ shop.

(Figure: Labor Supply Curve) Based on the graph, the substitution effect is shown by segment

The demand for labor that arises from consumer demand for the firm's product and the productivity of labor is called _____ demand.

When a labor market is imperfect due to market power by a firm, the result in that market typically is _____ their marginal value.

(Table) The amount of labor and corresponding output are provided in the table. The price per unit of output is $11.50. The wage paid per day is $115. To maximize economic profit, how many people should the firm hire? Labor Output 0 0 1 7 2 19 3 34 4 47 5 57

An increase in demand for a firm's product will lead to a lower MRPL.

Reece Inc. has just discovered that the marginal revenue product generated by the last worker hired was $120, while the marginal factor cost was $90. What should Reece Inc. do?

Which antidiscrimination act was signed first?

The _____ splits the labor market into primary and secondary sectors.

Which of these acts or policies was MOST favorable to the growth of unions?

Costs of union membership include all of these EXCEPT

In the United States, it is illegal for a company to restrict hiring to only workers who have already joined a union.

Which piece of legislation is also known as the National Labor Relations Act?

(Table) Based on the table, if the wage rate is $25, how many workers should this firm hire? Units of Labor Quantity of Output Product Price Marginal Revenue Product 1 20 \ 10 2 28 10 A 3 35 10 B 4 41 10 C 5 D 10 \ 30 6 35 10

Which legislative act MOST directly addresses wage inequality based on gender?

(Figure: Labor Supply Curve) Based on the graph, we see that this person is willing to supply _____ hours of labor at wage rate W1 than at W2 and _____ hours of labor at wage rate W3 than at W2.

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

An increase in demand for a firm's product will lead to a lower MRP_L.

(Figure: Labor Supply Curve) Based on the graph, we see that this person is willing to supply _ hours of labor at wage rate W₁ than at W₂ and _ hours of labor at wage rate W₃ than at W₂.