Question 1

Suppose that the government eases restrictions on the immigration of scientists and engineers. What would happen in the labor market for these professions, all else equal?

Accepted Answer

A)  Equilibrium wages would rise, and labor quantity would fall. 
B)  Equilibrium wages would fall, and labor quantity would rise. 
C)  Both equilibrium wages and labor quantity would fall. 
D)  Both equilibrium wages and labor quantity would rise. 
A)  Equilibrium wages would rise, and labor quantity would fall. 
B)  Equilibrium wages would fall, and labor quantity would rise. 
C)  Both equilibrium wages and labor quantity would fall. 
D)  Both equilibrium wages and labor quantity would rise.

Question 2

Which employer would BEST represent a monopsony?

Accepted Answer

A)  McDonalds 
B)  Starbucks 
C)  AT&T Wireless 
D)  the U.S. military 
A)  McDonalds 
B)  Starbucks 
C)  AT&T Wireless 
D)  the U.S. military

Question 3

(Figure: Determining Labor and Wages) A competitive firm hires _____ workers and pays them _____ wage.

Accepted Answer

A)  L0; W0 
B)  L0; W1 
C)  Lc; W1 
D)  Lc; W0 
A)  L0; W0 
B)  L0; W1 
C)  Lc; W1 
D)  Lc; W0

Question 4

(Table) Based on the table, what is the value of A?
$\begin{array}{|c|c|c|c|}
\hline \text { Units of Labor } & \begin{array}{c}
\text { Quantity of } \
\text { Output }
\end{array} & \text { Product Price } & \begin{array}{c}
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 20 & \$ 10 & \
\hline 2 & 28 & 10 & \text { A } \
\hline 3 & 35 & 10 & \text { B } \
\hline 4 & 41 & 10 & \text { C } \
\hline 5 & \text { D } & 10 & \$ 30 \
\hline 6 & 35 & 10 & \
\hline
\end{array}$

Accepted Answer

A)  $280 
B)  $28 
C)  $80 
D)  $8 
A)  $280 
B)  $28 
C)  $80 
D)  $8

Question 5

(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. Assuming labor is the only cost of production, the wages paid per day are $115. The economic profit earned by this profit-maximizing firm is
$\begin{array}{|c|c|}
\hline \text { Labor } & \text { Output } \
\hline 0 & 0 \
\hline 1 & 7 \
\hline 2 & 19 \
\hline 3 & 34 \
\hline 4 & 47 \
\hline 5 & 57 \
\hline
\end{array}$

Accepted Answer

A)  $80.50. 
B)  $90. 
C)  $110.50. 
D)  $125. 
A)  $80.50. 
B)  $90. 
C)  $110.50. 
D)  $125.

Question 6

Which labor supply curves will bend backward at high wages?

Accepted Answer

A)  only the individual labor supply curve 
B)  only the market labor supply curve 
C)  both the individual and market labor supply curve 
D)  neither the individual nor the market labor supply curve 
A)  only the individual labor supply curve 
B)  only the market labor supply curve 
C)  both the individual and market labor supply curve 
D)  neither the individual nor the market labor supply curve

Question 7

An increase in the _____ will NOT increase the supply of labor.

Accepted Answer

A)  number of two-income households 
B)  nonwage aspects of a job 
C)  wage rate for a job 
D)  deportation of immigrants 
A)  number of two-income households 
B)  nonwage aspects of a job 
C)  wage rate for a job 
D)  deportation of immigrants

Question 8

Public employees cannot collectively bargain.

Accepted Answer

A) True 
 B)False

Question 9

For an individual supply curve, the slope is always positive.

Accepted Answer

A) True 
 B)False

Question 10

Which example would BEST represent job crowding in labor markets?

Accepted Answer

A)  Workers in right-to-work states choose not to join the union. 
B)  Female workers choose flexible jobs that are more conducive to parenting. 
C)  Discrimination forces workers into secondary sectors with poor working conditions. 
D)  Too many people choose the same career, causing a surplus in the labor market. 
A)  Workers in right-to-work states choose not to join the union. 
B)  Female workers choose flexible jobs that are more conducive to parenting. 
C)  Discrimination forces workers into secondary sectors with poor working conditions. 
D)  Too many people choose the same career, causing a surplus in the labor market.

Question 11

Suppose a city is developed on the Moon that requires every worker to be a member of the Space Union before she or he can begin work. This union requirement is best described as a _____ shop.

Accepted Answer

A)  closed 
B)  union 
C)  agency 
D)  right-to-work 
A)  closed 
B)  union 
C)  agency 
D)  right-to-work

Question 12

The act requiring that men and women receive equal pay for equal work is the Equal Pay Act of 1963.

Accepted Answer

A) True 
 B)False

Question 13

In general, the union wage differential is 10% to 20% above wages of nonunion members.

Accepted Answer

A) True 
 B)False

Question 14

Which of these is MOST likely to decrease the demand for labor in the nursing industry?

Accepted Answer

A)  increase in demand for health care services 
B)  increase in the productivity of nurses as they perform services previously done by doctors 
C)  increase in Web-based medical services that allow patients to self-diagnose minor illnesses 
D)  decrease in the number of colleges offering four-year nursing degrees 
A)  increase in demand for health care services 
B)  increase in the productivity of nurses as they perform services previously done by doctors 
C)  increase in Web-based medical services that allow patients to self-diagnose minor illnesses 
D)  decrease in the number of colleges offering four-year nursing degrees

Question 15

If the demand for luxury cruises is price elastic, one can conclude that the demand for the staff working on the vessels is sensitive to the wage rate of these workers.

Accepted Answer

A) True 
 B)False

Question 16

What types of industries have been outsourced from the United States because of international trade?

Accepted Answer

A)  industries that require a large amount of labor 
B)  industries that require highly skilled workers 
C)  industries that require cell-phone connectivity 
D)  industries that require a high degree of technology 
A)  industries that require a large amount of labor 
B)  industries that require highly skilled workers 
C)  industries that require cell-phone connectivity 
D)  industries that require a high degree of technology

Question 17

Which change will cause the market labor supply curve of industry A to shift to the right?

Accepted Answer

A)  an increase in wages paid in industry B 
B)  a decrease in the average benefit package paid to workers in industry A 
C)  an increase in nonwage income for all workers in the market 
D)  an increase in immigration that results in more workers being available to industry A 
A)  an increase in wages paid in industry B 
B)  a decrease in the average benefit package paid to workers in industry A 
C)  an increase in nonwage income for all workers in the market 
D)  an increase in immigration that results in more workers being available to industry A

Question 18

If unions are successful at restricting the supply of unionized workers and increasing the demand for them

Accepted Answer

A)  no wage differential will exist between union workers and nonunion workers. 
B)  the wage differential between union workers and nonunion workers will increase. 
C)  the wage differential between union workers and nonunion workers will decrease. 
D)  consumers will buy the union label. 
A)  no wage differential will exist between union workers and nonunion workers. 
B)  the wage differential between union workers and nonunion workers will increase. 
C)  the wage differential between union workers and nonunion workers will decrease. 
D)  consumers will buy the union label.

Question 19

Which of these describes a labor market in which most of a small town's workers are employed by one large company?

Accepted Answer

A)  monopoly 
B)  oligopoly 
C)  monopsony 
D)  monopolistic competition 
A)  monopoly 
B)  oligopoly 
C)  monopsony 
D)  monopolistic competition

Question 20

Suppose the wage rate rises. After the product price adjusts in the long run, the market demand for labor will

Accepted Answer

A)  become more elastic. 
B)  stay unchanged. 
C)  become less elastic. 
D)  shift to the left. 
A)  become more elastic. 
B)  stay unchanged. 
C)  become less elastic. 
D)  shift to the left.

Suppose that the government eases restrictions on the immigration of scientists and engineers. What would happen in the labor market for these professions, all else equal?

Which employer would BEST represent a monopsony?

(Figure: Determining Labor and Wages) A competitive firm hires _ workers and pays them _ wage.

(Table) Based on the table, what is the value of A? 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 labor supply curves will bend backward at high wages?

An increase in the _____ will NOT increase the supply of labor.

Public employees cannot collectively bargain.

For an individual supply curve, the slope is always positive.

Which example would BEST represent job crowding in labor markets?

Suppose a city is developed on the Moon that requires every worker to be a member of the Space Union before she or he can begin work. This union requirement is best described as a _____ shop.

The act requiring that men and women receive equal pay for equal work is the Equal Pay Act of 1963.

In general, the union wage differential is 10% to 20% above wages of nonunion members.

Which of these is MOST likely to decrease the demand for labor in the nursing industry?

If the demand for luxury cruises is price elastic, one can conclude that the demand for the staff working on the vessels is sensitive to the wage rate of these workers.

What types of industries have been outsourced from the United States because of international trade?

Which change will cause the market labor supply curve of industry A to shift to the right?

If unions are successful at restricting the supply of unionized workers and increasing the demand for them

Which of these describes a labor market in which most of a small town's workers are employed by one large company?

Suppose the wage rate rises. After the product price adjusts in the long run, the market demand for labor will

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

Suppose that the government eases restrictions on the immigration of scientists and engineers. What would happen in the labor market for these professions, all else equal?

Which employer would BEST represent a monopsony?

(Figure: Determining Labor and Wages) A competitive firm hires _____ workers and pays them _____ wage.

(Table) Based on the table, what is the value of A? 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 labor supply curves will bend backward at high wages?

An increase in the _____ will NOT increase the supply of labor.

Public employees cannot collectively bargain.

For an individual supply curve, the slope is always positive.

Which example would BEST represent job crowding in labor markets?

Suppose a city is developed on the Moon that requires every worker to be a member of the Space Union before she or he can begin work. This union requirement is best described as a _____ shop.

The act requiring that men and women receive equal pay for equal work is the Equal Pay Act of 1963.

In general, the union wage differential is 10% to 20% above wages of nonunion members.

Which of these is MOST likely to decrease the demand for labor in the nursing industry?

If the demand for luxury cruises is price elastic, one can conclude that the demand for the staff working on the vessels is sensitive to the wage rate of these workers.

What types of industries have been outsourced from the United States because of international trade?

Which change will cause the market labor supply curve of industry A to shift to the right?

If unions are successful at restricting the supply of unionized workers and increasing the demand for them

Which of these describes a labor market in which most of a small town's workers are employed by one large company?

Suppose the wage rate rises. After the product price adjusts in the long run, the market demand for labor will

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

(Figure: Determining Labor and Wages) A competitive firm hires _ workers and pays them _ wage.