Question 1

A yellow dog contract is an agreement

Accepted Answer

A)  by labor not to strike. 
B)  by employers not to participate in a lockout. 
C)  in which a worker agrees not to join a union. 
D)  to engage in pattern bargaining. 
E)  not to seek injunctions to prevent strikes and lockouts. 
A)  by labor not to strike. 
B)  by employers not to participate in a lockout. 
C)  in which a worker agrees not to join a union. 
D)  to engage in pattern bargaining. 
E)  not to seek injunctions to prevent strikes and lockouts.

Question 2

In general,a firm should employ additional units of labor as long as

Accepted Answer

A)  they are willing to work. 
B)  their wages exceed the value of their marginal product. 
C)  their wage rates do not change. 
D)  they add at least as much to revenues as they do to costs. 
E)  production is functioning. 
A)  they are willing to work. 
B)  their wages exceed the value of their marginal product. 
C)  their wage rates do not change. 
D)  they add at least as much to revenues as they do to costs. 
E)  production is functioning.

Question 3

The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit.
-If the cost to the firm of hiring this unit of labor (wages,Social Security,and other payroll taxes)is $12 per hour for an eight-hour day,a profit-maximizing firm

Accepted Answer

A)  should hire the additional unit of labor. 
B)  should not hire this extra unit. 
C)  should hire this person for half a day. 
D)  should hire this extra unit of labor plus one more. 
E)  There is not enough information available to determine the optimal number of workers. 
A)  should hire the additional unit of labor. 
B)  should not hire this extra unit. 
C)  should hire this person for half a day. 
D)  should hire this extra unit of labor plus one more. 
E)  There is not enough information available to determine the optimal number of workers.

Question 4

The purpose of right-to-work laws is to outlaw

Accepted Answer

A)  yellow dog contracts. 
B)  open shops. 
C)  union shops. 
D)  closed shops. 
E)  lockouts. 
A)  yellow dog contracts. 
B)  open shops. 
C)  union shops. 
D)  closed shops. 
E)  lockouts.

Question 5

In a closed 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 6

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

Accepted Answer

A)  no worker wishes to work for a lower wage. 
B)  a higher wage would produce an excess supply; a lower wage would produce an excess demand. 
C)  at a wage above this, employers are not willing to hire any workers. 
D)  this wage is consistent with union ambitions. 
E)  higher or lower wages generate shifts in the supply and demand curve to restore that wage. 
A)  no worker wishes to work for a lower wage. 
B)  a higher wage would produce an excess supply; a lower wage would produce an excess demand. 
C)  at a wage above this, employers are not willing to hire any workers. 
D)  this wage is consistent with union ambitions. 
E)  higher or lower wages generate shifts in the supply and demand curve to restore that wage.

Question 7

In recent years the composition of the labor force has reflected an increasing proportion of ________ workers.

Accepted Answer

A)  white-collar 
B)  blue-collar 
C)  skilled 
D)  male 
E)  unionized 
A)  white-collar 
B)  blue-collar 
C)  skilled 
D)  male 
E)  unionized

Question 8

The following question are based on the following information for a firm under conditions of perfect competition:
  
-If the price of labor increases to $50 per worker and the price of the product remains at $5 per unit,how many workers should the firm hire to maximize profits?

Accepted Answer

A)  10 
B)  11 
C)  12 
D)  13 
E)  14 
A)  10 
B)  11 
C)  12 
D)  13 
E)  14

Question 9

A labor organization set up in a specific geographic area or plant is called a

Accepted Answer

A)  national union. 
B)  closed shop. 
C)  cartel. 
D)  company union. 
E)  local union. 
A)  national union. 
B)  closed shop. 
C)  cartel. 
D)  company union. 
E)  local union.

Question 10

The money wage adjusted for the price level is called

Accepted Answer

A)  salary. 
B)  compensation. 
C)  value added. 
D)  the value of the marginal product. 
E)  the real wage. 
A)  salary. 
B)  compensation. 
C)  value added. 
D)  the value of the marginal product. 
E)  the real wage.

Question 11

The following question are based on the following information for a firm under conditions of perfect competition:
  
-A firm's demand curve for labor is

Accepted Answer

A)  backward bending, especially in the short run. 
B)  its value of labor's marginal product curve. 
C)  equal to the price of labor times its productivity. 
D)  calculated by dividing total output per day by the number of workers. 
E)  derived from the supply of labor. 
A)  backward bending, especially in the short run. 
B)  its value of labor's marginal product curve. 
C)  equal to the price of labor times its productivity. 
D)  calculated by dividing total output per day by the number of workers. 
E)  derived from the supply of labor.

Question 12

Efforts by a union representative to organize a union are protected from employer interference by the ________ Act.

Accepted Answer

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

Question 13

A court action that minimizes union power is the

Accepted Answer

A)  checkoff. 
B)  yellow dog contract. 
C)  lockout. 
D)  injunction. 
E)  strike. 
A)  checkoff. 
B)  yellow dog contract. 
C)  lockout. 
D)  injunction. 
E)  strike.

Question 14

For an employer,profits are maximized when the

Accepted Answer

A)  price of the product exceeds the price of labor. 
B)  marginal product of labor is greater than its price. 
C)  price of labor equals the price of all other inputs. 
D)  value of labor's marginal product is equal to the price of the product. 
E)  price of labor equals the value of its marginal product. 
A)  price of the product exceeds the price of labor. 
B)  marginal product of labor is greater than its price. 
C)  price of labor equals the price of all other inputs. 
D)  value of labor's marginal product is equal to the price of the product. 
E)  price of labor equals the value of its marginal product.

Question 15

A major union weapon to force a favorable settlement is the threat of

Accepted Answer

A)  a lockout. 
B)  an open shop. 
C)  featherbedding. 
D)  a strike. 
E)  collective bargaining. 
A)  a lockout. 
B)  an open shop. 
C)  featherbedding. 
D)  a strike. 
E)  collective bargaining.

Question 16

The following question are based on the following perfectly competitive firm's demand curve for labor:
  
-The firm would hire three workers if the wage of a worker were between

Accepted Answer

A)  $31 and $40. 
B)  $41 and $50. 
C)  $51 and $60. 
D)  $61 and $70. 
E)  $71 and $80. 
A)  $31 and $40. 
B)  $41 and $50. 
C)  $51 and $60. 
D)  $61 and $70. 
E)  $71 and $80.

Question 17

The period during which union membership achieved its most spectacular growth was the

Accepted Answer

A)  1910s. 
B)  1920s. 
C)  1930s. 
D)  1950s. 
E)  1960s. 
A)  1910s. 
B)  1920s. 
C)  1930s. 
D)  1950s. 
E)  1960s.

Question 18

The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit.
-What is the value of labor's marginal product?

Accepted Answer

A)  75 units 
B)  100 units 
C)  $0.75 
D)  $75 
E)  $133 
A)  75 units 
B)  100 units 
C)  $0.75 
D)  $75 
E)  $133

Question 19

Unions try to shift the demand curve for labor to the right by

Accepted Answer

A)  raising wages. 
B)  favoring legislation to shorten working hours. 
C)  featherbedding. 
D)  promoting right-to-work laws. 
E)  limiting union membership. 
A)  raising wages. 
B)  favoring legislation to shorten working hours. 
C)  featherbedding. 
D)  promoting right-to-work laws. 
E)  limiting union membership.

Question 20

In an open 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.

Exam 10: The Supply and Demand for Labor

A yellow dog contract is an agreement

In general,a firm should employ additional units of labor as long as

The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit. -If the cost to the firm of hiring this unit of labor (wages,Social Security,and other payroll taxes)is $12 per hour for an eight-hour day,a profit-maximizing firm

The purpose of right-to-work laws is to outlaw

In a closed shop,workers

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

In recent years the composition of the labor force has reflected an increasing proportion of ________ workers.

The following question are based on the following information for a firm under conditions of perfect competition: -If the price of labor increases to $50 per worker and the price of the product remains at $5 per unit,how many workers should the firm hire to maximize profits?

A labor organization set up in a specific geographic area or plant is called a

The money wage adjusted for the price level is called

The following question are based on the following information for a firm under conditions of perfect competition: -A firm's demand curve for labor is

Efforts by a union representative to organize a union are protected from employer interference by the ________ Act.

A court action that minimizes union power is the

For an employer,profits are maximized when the

A major union weapon to force a favorable settlement is the threat of

The following question are based on the following perfectly competitive firm's demand curve for labor: -The firm would hire three workers if the wage of a worker were between

The period during which union membership achieved its most spectacular growth was the

The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit. -What is the value of labor's marginal product?

Unions try to shift the demand curve for labor to the right by

In an open shop,workers

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

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