Question 1

One reason current European unemployment rates are significantly above those in the United States is that European

Accepted Answer

A)  labor laws seem designed mainly to protect the higher wages received by mostly male workers in the 25- to 54-year age bracket. 
B)  countries typically have less generous social welfare benefits than those in the United States. 
C)  inflation-adjusted labor costs have risen less rapidly than those in the United States over the last 30 years. 
D)  workers are more productive than U.S. workers. 
E)  countries import most of the goods they consume. 
A)  labor laws seem designed mainly to protect the higher wages received by mostly male workers in the 25- to 54-year age bracket. 
B)  countries typically have less generous social welfare benefits than those in the United States. 
C)  inflation-adjusted labor costs have risen less rapidly than those in the United States over the last 30 years. 
D)  workers are more productive than U.S. workers. 
E)  countries import most of the goods they consume. A

Question 2

The real wage

Accepted Answer

A)  equals the amount of goods and services that can be bought with the money wage. 
B)  is the amount of money received per unit of time. 
C)  unlike the money wage, is unaffected by changes in the price level. 
D)  rises faster than the money wage as the price level rises. 
E)  is the money wage adjusted for changes in real output. 
A)  equals the amount of goods and services that can be bought with the money wage. 
B)  is the amount of money received per unit of time. 
C)  unlike the money wage, is unaffected by changes in the price level. 
D)  rises faster than the money wage as the price level rises. 
E)  is the money wage adjusted for changes in real output. A

Question 3

Which sequence correctly ranks (from highest to lowest)the average weekly earnings of workers in the industries listed?

Accepted Answer

A)  services, construction, manufacturing 
B)  construction, services, manufacturing 
C)  manufacturing, services, construction 
D)  construction, manufacturing, services 
E)  services, manufacturing, construction 
A)  services, construction, manufacturing 
B)  construction, services, manufacturing 
C)  manufacturing, services, construction 
D)  construction, manufacturing, services 
E)  services, manufacturing, construction D

Question 4

Which of the following protects union members from abuse by union leaders?

Accepted Answer

A)  Norris-La Guardia Act 
B)  Lewis Act 
C)  Taft-Hartley Act 
D)  Landrum-Griffin Act 
E)  Wagner Act 
A)  Norris-La Guardia Act 
B)  Lewis Act 
C)  Taft-Hartley Act 
D)  Landrum-Griffin Act 
E)  Wagner Act

Question 5

The Taft-Hartley Act

Accepted Answer

A)  established the eight-hour workday and additional pay for overtime work. 
B)  was intended to redress the balance between labor and employers. 
C)  makes it an unfair labor practice for employers to refuse to bargain collectively with unions. 
D)  outlaws lockouts, the checkoff, and yellow dog contracts. 
E)  protects union members from abuse by union leaders. 
A)  established the eight-hour workday and additional pay for overtime work. 
B)  was intended to redress the balance between labor and employers. 
C)  makes it an unfair labor practice for employers to refuse to bargain collectively with unions. 
D)  outlaws lockouts, the checkoff, and yellow dog contracts. 
E)  protects union members from abuse by union leaders.

Question 6

The AFL-CIO is

Accepted Answer

A)  a loose affiliation of small local unions. 
B)  a powerful management-sponsored organization designed to bargain with large national labor unions. 
C)  a government agency to mediate labor-employer disputes. 
D)  a federation of national unions that serves as a spokesperson for the U.S. labor movement. 
E)  the governing body of all U.S. labor unions. 
A)  a loose affiliation of small local unions. 
B)  a powerful management-sponsored organization designed to bargain with large national labor unions. 
C)  a government agency to mediate labor-employer disputes. 
D)  a federation of national unions that serves as a spokesperson for the U.S. labor movement. 
E)  the governing body of all U.S. labor unions.

Question 7

Union membership,as a percentage of the total U.S.labor force

Accepted Answer

A)  has declined fairly steadily for about 30 years now. 
B)  has stayed about the same since the turn of the century. 
C)  has grown slightly since the 1930s. 
D)  has grown rapidly since the 1930s. 
E)  declined from the early 1950s to the 1970s but is now growing slowly. 
A)  has declined fairly steadily for about 30 years now. 
B)  has stayed about the same since the turn of the century. 
C)  has grown slightly since the 1930s. 
D)  has grown rapidly since the 1930s. 
E)  declined from the early 1950s to the 1970s but is now growing slowly.

Question 8

The following question are based on the following graph depicting a perfectly competitive labor market:
  
-The equilibrium wage is

Accepted Answer

A)  0W₁. 
B)  0W₂. 
C)  0W₃. 
D)  0W₄. 
E)  0W₅. 
A)  0W₁. 
B)  0W₂. 
C)  0W₃. 
D)  0W₄. 
E)  0W₅.

Question 9

The demand for labor and other inputs is a derived demand because

Accepted Answer

A)  as the price rises, the quantity demanded falls. 
B)  under certain conditions it is backward bending. 
C)  the firm's demand curve for labor is derived from the market demand curve for labor. 
D)  inputs are demanded to produce other things and not as an end in themselves. 
E)  workers derive income from working. 
A)  as the price rises, the quantity demanded falls. 
B)  under certain conditions it is backward bending. 
C)  the firm's demand curve for labor is derived from the market demand curve for labor. 
D)  inputs are demanded to produce other things and not as an end in themselves. 
E)  workers derive income from working.

Question 10

Wage differentials that persist in labor markets because of the inability of individuals to gain the training necessary to enter highly paid occupations are an example of

Accepted Answer

A)  noncompeting groups. 
B)  a derived demand. 
C)  perfectly competitive homogeneous labor markets. 
D)  a bilateral involvement. 
E)  a marginal attachment. 
A)  noncompeting groups. 
B)  a derived demand. 
C)  perfectly competitive homogeneous labor markets. 
D)  a bilateral involvement. 
E)  a marginal attachment.

Question 11

In a union shop,workers

Accepted Answer

A)  must be union members before they can be hired. 
B)  need not be union members to work. 
C)  must become union members within a certain period of time once they have been hired. 
D)  are not able to strike under any circumstances. 
E)  sign yellow dog contracts before they begin work. 
A)  must be union members before they can be hired. 
B)  need not be union members to work. 
C)  must become union members within a certain period of time once they have been hired. 
D)  are not able to strike under any circumstances. 
E)  sign yellow dog contracts before they begin work.

Question 12

The purpose of the Landrum-Griffin Act is to

Accepted Answer

A)  outlaw the closed shop. 
B)  eliminate the checkoff system. 
C)  ban yellow dog contracts. 
D)  make it an unfair labor practice for employers to refuse to bargain collectively with unions representing a majority of their workers. 
E)  protect the rights of individual union members from abuse by union leaders. 
A)  outlaw the closed shop. 
B)  eliminate the checkoff system. 
C)  ban yellow dog contracts. 
D)  make it an unfair labor practice for employers to refuse to bargain collectively with unions representing a majority of their workers. 
E)  protect the rights of individual union members from abuse by union leaders.

Question 13

One function of the National Labor Relations Board is to

Accepted Answer

A)  sanction strikes. 
B)  set wages and working conditions. 
C)  control the composition of the AFL-CIO. 
D)  hold elections to determine which, if any, union would represent various groups of employees. 
E)  enforce compliance with the so-called American Labor Plan. 
A)  sanction strikes. 
B)  set wages and working conditions. 
C)  control the composition of the AFL-CIO. 
D)  hold elections to determine which, if any, union would represent various groups of employees. 
E)  enforce compliance with the so-called American Labor Plan.

Question 14

Under perfect competition,the supply curve of labor or other inputs to an individual firm is

Accepted Answer

A)  horizontal. 
B)  backward bending. 
C)  downward sloping. 
D)  vertical. 
E)  identical with the market supply curve of the input. 
A)  horizontal. 
B)  backward bending. 
C)  downward sloping. 
D)  vertical. 
E)  identical with the market supply curve of the input.

Question 15

The marginal product of labor multiplied by the price of the product produced is called the

Accepted Answer

A)  value of the marginal product of labor. 
B)  firm's supply curve of labor. 
C)  revenue possibilities curve of labor. 
D)  capitalization of labor curve. 
E)  labor productivity curve. 
A)  value of the marginal product of labor. 
B)  firm's supply curve of labor. 
C)  revenue possibilities curve of labor. 
D)  capitalization of labor curve. 
E)  labor productivity curve.

Question 16

The largest national union in the United States is the

Accepted Answer

A)  Teamsters. 
B)  National Education Association. 
C)  United Auto Workers. 
D)  AFL-CIO. 
E)  American Association of Federal, County, and Municipal Employees. 
A)  Teamsters. 
B)  National Education Association. 
C)  United Auto Workers. 
D)  AFL-CIO. 
E)  American Association of Federal, County, and Municipal Employees.

Question 17

After some point,increased real wage rates that make people richer cause the supply curve of labor to

Accepted Answer

A)  become horizontal. 
B) shift to the right. 
C)  fluctuate unpredictably. 
D)  remain vertical. 
E)  bend backward. 
A)  become horizontal. 
B) shift to the right. 
C)  fluctuate unpredictably. 
D)  remain vertical. 
E)  bend backward.

Question 18

Unions regularly encourage Congress to reduce both immigration and working hours because unions want to

Accepted Answer

A)  shift the supply curve for labor to the left. 
B) shift the demand curve for labor to the right. 
C)  promote the unemployment of nonunion members. 
D)  encourage the importation of consumer goods from abroad. 
E)  stimulate the introduction of labor-saving machinery. 
A)  shift the supply curve for labor to the left. 
B) shift the demand curve for labor to the right. 
C)  promote the unemployment of nonunion members. 
D)  encourage the importation of consumer goods from abroad. 
E)  stimulate the introduction of labor-saving machinery.

Question 19

The fact that surgeons receive higher hourly wages than school teachers reflects the

Accepted Answer

A)  higher hourly value of a surgeon's marginal product. 
B)  shortage of school teachers. 
C)  surplus of surgeons. 
D)  longer hours worked by surgeons. 
E)  incompetence of school teachers. 
A)  higher hourly value of a surgeon's marginal product. 
B)  shortage of school teachers. 
C)  surplus of surgeons. 
D)  longer hours worked by surgeons. 
E)  incompetence of school teachers.

Question 20

The demand for labor (and other inputs),not as ends in themselves but as means to produce other things,is called ________ demand.

Accepted Answer

A)  derived 
B)  aggregate 
C)  complementary 
D)  transactions 
E)  exogenous 
A)  derived 
B)  aggregate 
C)  complementary 
D)  transactions 
E)  exogenous

Exam 10: The Supply and Demand for Labor

One reason current European unemployment rates are significantly above those in the United States is that European

The real wage

Which sequence correctly ranks (from highest to lowest)the average weekly earnings of workers in the industries listed?

Which of the following protects union members from abuse by union leaders?

The Taft-Hartley Act

The AFL-CIO is

Union membership,as a percentage of the total U.S.labor force

The following question are based on the following graph depicting a perfectly competitive labor market: -The equilibrium wage is

The demand for labor and other inputs is a derived demand because

Wage differentials that persist in labor markets because of the inability of individuals to gain the training necessary to enter highly paid occupations are an example of

In a union shop,workers

The purpose of the Landrum-Griffin Act is to

One function of the National Labor Relations Board is to

Under perfect competition,the supply curve of labor or other inputs to an individual firm is

The marginal product of labor multiplied by the price of the product produced is called the

The largest national union in the United States is the

After some point,increased real wage rates that make people richer cause the supply curve of labor to

Unions regularly encourage Congress to reduce both immigration and working hours because unions want to

The fact that surgeons receive higher hourly wages than school teachers reflects the

The demand for labor (and other inputs),not as ends in themselves but as means to produce other things,is called ________ demand.

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters