Question 1

Everything else held constant, a decrease in demand for male-dominated jobs and an increase in demand for female-dominated jobs

Accepted Answer

A)  widens the wage differential between men and women. 
B)  increases male employment. 
C)  reduces female employment. 
D)  reduces the wage differential between men and women. 
A)  widens the wage differential between men and women. 
B)  increases male employment. 
C)  reduces female employment. 
D)  reduces the wage differential between men and women.

Question 2

The marginal factor cost is the added cost of hiring one more worker.

Accepted Answer

A) True 
 B)False

Question 3

(Figure: Market Wages and Labor Demand) Based on the figure, if the market wage is $100, the firm will employ _____ workers.

Accepted Answer

A)  four 
B)  six 
C)  seven 
D)  eight 
A)  four 
B)  six 
C)  seven 
D)  eight

Question 4

The substitution effect for labor supply states that people work

Accepted Answer

A)  less as wages rise because their ability to purchase goods increases. 
B)  more as wages rise because their ability to purchase goods increases. 
C)  less as wages rise because the opportunity cost of leisure increases. 
D)  more as wages rise because the opportunity cost of leisure increases. 
A)  less as wages rise because their ability to purchase goods increases. 
B)  more as wages rise because their ability to purchase goods increases. 
C)  less as wages rise because the opportunity cost of leisure increases. 
D)  more as wages rise because the opportunity cost of leisure increases.

Question 5

The elasticity of demand for cucumbers is 3, while the elasticity of demand for salt is 0.2. Thus, ceteris paribus, the demand for labor to pick cucumbers will be _____ compared to the demand for labor to mine salt.

Accepted Answer

A)  more elastic 
B)  less elastic 
C)  equally elastic 
D)  more inelastic 
A)  more elastic 
B)  less elastic 
C)  equally elastic 
D)  more inelastic

Question 6

Prior to 1962, collective bargaining focused on the public sector.

Accepted Answer

A) True 
 B)False

Question 7

The job crowding hypothesis segments occupations into predominately male and female jobs.

Accepted Answer

A) True 
 B)False

Question 8

The amount it costs a firm to hire one more worker is known as the

Accepted Answer

A)  marginal cost of labor. 
B)  marginal factor cost. 
C)  marginal product cost. 
D)  marginal cost. 
A)  marginal cost of labor. 
B)  marginal factor cost. 
C)  marginal product cost. 
D)  marginal cost.

Question 9

Describe what happens when women are crowded out of an industry when there is a dual labor market for men and women. Use a graph to support your answer.

Accepted Answer

As seen in the graph, in a world without

Question 10

If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the demand curve for labor is

Accepted Answer

A)  elastic. 
B)  inelastic. 
C)  unitary. 
D)  horizontal. 
A)  elastic. 
B)  inelastic. 
C)  unitary. 
D)  horizontal.

Question 11

An increase in the price of capital will

Accepted Answer

A)  lead to an increase in the demand for labor. 
B)  lead to a decrease in the demand for labor. 
C)  lead to a substitution of more capital and less labor. 
D)  not affect the demand for labor. 
A)  lead to an increase in the demand for labor. 
B)  lead to a decrease in the demand for labor. 
C)  lead to a substitution of more capital and less labor. 
D)  not affect the demand for labor.

Question 12

What is monopsony exploitation of labor? Support your discussion with a graph.

Accepted Answer

Monopsony exploitation of labor is the d

Question 13

You have recently earned an hourly pay raise. As your wages increase, the opportunity cost of going to the beach rather than working

Accepted Answer

A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  is limited by the income effect. 
A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  is limited by the income effect.

Question 14

Union membership tends to decrease labor _____, leading to _____ for union members.

Accepted Answer

A)  demand; higher wages 
B)  demand; lower wages 
C)  supply; higher wages 
D)  supply; lower wages 
A)  demand; higher wages 
B)  demand; lower wages 
C)  supply; higher wages 
D)  supply; lower wages

Question 15

_____ is the added cost associated with hiring one more unit of labor.

Accepted Answer

A)  MRP 
B)  VMP 
C)  MFC 
D)  MPP 
A)  MRP 
B)  VMP 
C)  MFC 
D)  MPP

Question 16

The substitution effect shows a _____ relationship between wages and hours worked, whereas the income effect shows a _____ relationship.

Accepted Answer

A)  negative; positive 
B)  negative; negative 
C)  positive; negative 
D)  positive; positive 
A)  negative; positive 
B)  negative; negative 
C)  positive; negative 
D)  positive; positive

Question 17

The National Labor Relations Board

Accepted Answer

A)  was disbanded by the National Labor Relations Act. 
B)  represents employers in a labor dispute. 
C)  is charged with overseeing union certification elections. 
D)  grants authorization to unions to strike. 
A)  was disbanded by the National Labor Relations Act. 
B)  represents employers in a labor dispute. 
C)  is charged with overseeing union certification elections. 
D)  grants authorization to unions to strike.

Question 18

(Table) Based on the table, the value for C is
$\begin{array}{c}
\text { Competitive Labor Market }\
\begin{array}{|c|c|c|c|c|c|}
\hline L & Q & M P P & \boldsymbol{P} & \boldsymbol{M M P} & \boldsymbol{W} \
\hline 0 & 0 & 0 & 8 & 0 & 80 \
\hline 1 & 5 & 5 & 8 & 40 & 80 \
\hline 2 & 11 & 6 & 8 & 48 & 80 \
\hline 3 & 18 & 7 & 8 & 56 & 80 \
\hline 4 & \mathrm{~A} & 9 & 8 & 72 & 80 \
\hline 5 & 38 & \mathrm{~B} & 8 & 88 & 80 \
\hline 6 & 50 & 12 & 8 & \mathrm{C} & 80 \
\hline 7 & 61 & 11 & 8 & 88 & 80 \
\hline 8 & 71 & 10 & 8 & 80 & 80 \
\hline 9 & 80 & 9 & 8 & 72 & 80 \
\hline 10 & 85 & 5 & 8 & 40 & 80 \
\hline
\end{array}
\end{array}$

Accepted Answer

A)  88. 
B)  80. 
C)  96. 
D)  400. 
A)  88. 
B)  80. 
C)  96. 
D)  400.

Question 19

Gary Becker's theory of economic discrimination explains how firms that discriminate will

Accepted Answer

A)  attract the most productive workers. 
B)  gain market share. 
C)  have higher labor costs. 
D)  have higher profits. 
A)  attract the most productive workers. 
B)  gain market share. 
C)  have higher labor costs. 
D)  have higher profits.

Question 20

The ultimate power of a union is the willingness of its members to _____ if no agreement is reached during negotiations.

Accepted Answer

A)  work at a lower production rate 
B)  go on strike 
C)  engage in collective bargaining 
D)  sabotage a company 
A)  work at a lower production rate 
B)  go on strike 
C)  engage in collective bargaining 
D)  sabotage a company

Everything else held constant, a decrease in demand for male-dominated jobs and an increase in demand for female-dominated jobs

The marginal factor cost is the added cost of hiring one more worker.

(Figure: Market Wages and Labor Demand) Based on the figure, if the market wage is $100, the firm will employ _____ workers.

The substitution effect for labor supply states that people work

The elasticity of demand for cucumbers is 3, while the elasticity of demand for salt is 0.2. Thus, ceteris paribus, the demand for labor to pick cucumbers will be _____ compared to the demand for labor to mine salt.

Prior to 1962, collective bargaining focused on the public sector.

The job crowding hypothesis segments occupations into predominately male and female jobs.

The amount it costs a firm to hire one more worker is known as the

Describe what happens when women are crowded out of an industry when there is a dual labor market for men and women. Use a graph to support your answer.

If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the demand curve for labor is

An increase in the price of capital will

What is monopsony exploitation of labor? Support your discussion with a graph.

You have recently earned an hourly pay raise. As your wages increase, the opportunity cost of going to the beach rather than working

Union membership tends to decrease labor _, leading to _ for union members.

_____ is the added cost associated with hiring one more unit of labor.

The substitution effect shows a _ relationship between wages and hours worked, whereas the income effect shows a _ relationship.

The National Labor Relations Board

(Table) Based on the table, the value for C is Competitive Labor Market L Q MPP 0 0 0 8 0 80 1 5 5 8 40 80 2 11 6 8 48 80 3 18 7 8 56 80 4 9 8 72 80 5 38 8 88 80 6 50 12 8 80 7 61 11 8 88 80 8 71 10 8 80 80 9 80 9 8 72 80 10 85 5 8 40 80

Gary Becker's theory of economic discrimination explains how firms that discriminate will

The ultimate power of a union is the willingness of its members to _____ if no agreement is reached during negotiations.

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

Everything else held constant, a decrease in demand for male-dominated jobs and an increase in demand for female-dominated jobs

The marginal factor cost is the added cost of hiring one more worker.

(Figure: Market Wages and Labor Demand) Based on the figure, if the market wage is $100, the firm will employ _____ workers.

The substitution effect for labor supply states that people work

The elasticity of demand for cucumbers is 3, while the elasticity of demand for salt is 0.2. Thus, ceteris paribus, the demand for labor to pick cucumbers will be _____ compared to the demand for labor to mine salt.

Prior to 1962, collective bargaining focused on the public sector.

The job crowding hypothesis segments occupations into predominately male and female jobs.

The amount it costs a firm to hire one more worker is known as the

Describe what happens when women are crowded out of an industry when there is a dual labor market for men and women. Use a graph to support your answer.

If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the demand curve for labor is

An increase in the price of capital will

What is monopsony exploitation of labor? Support your discussion with a graph.

You have recently earned an hourly pay raise. As your wages increase, the opportunity cost of going to the beach rather than working

Union membership tends to decrease labor _____, leading to _____ for union members.

_____ is the added cost associated with hiring one more unit of labor.

The substitution effect shows a _____ relationship between wages and hours worked, whereas the income effect shows a _____ relationship.

The National Labor Relations Board

(Table) Based on the table, the value for C is Competitive Labor Market L Q MPP 0 0 0 8 0 80 1 5 5 8 40 80 2 11 6 8 48 80 3 18 7 8 56 80 4 9 8 72 80 5 38 8 88 80 6 50 12 8 80 7 61 11 8 88 80 8 71 10 8 80 80 9 80 9 8 72 80 10 85 5 8 40 80

Gary Becker's theory of economic discrimination explains how firms that discriminate will

The ultimate power of a union is the willingness of its members to _____ if no agreement is reached during negotiations.

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

Union membership tends to decrease labor _, leading to _ for union members.

The substitution effect shows a _ relationship between wages and hours worked, whereas the income effect shows a _ relationship.