Question 1

In a perfectly competitive economy,individuals would be paid according to their

Accepted Answer

A)  age and seniority. 
B)  physical ability. 
C)  education. 
D)  race or gender. 
E)  contribution to production. 
A)  age and seniority. 
B)  physical ability. 
C)  education. 
D)  race or gender. 
E)  contribution to production.

Question 2

Under which condition is the checkoff legal?

Accepted Answer

A)  the worker must agree in writing 
B)  there must be a closed shop 
C)  there must be a yellow dog contract 
D)  the union must have sufficient funds to cover the check 
E)  the union must mandate it as a condition of membership 
A)  the worker must agree in writing 
B)  there must be a closed shop 
C)  there must be a yellow dog contract 
D)  the union must have sufficient funds to cover the check 
E)  the union must mandate it as a condition of membership

Question 3

The price of labor services is generally called

Accepted Answer

A)  profits. 
B)  capital. 
C)  an occupation. 
D)  wages. 
E)  employment. 
A)  profits. 
B)  capital. 
C)  an occupation. 
D)  wages. 
E)  employment.

Question 4

The practice of featherbedding may be viewed as a(n)

Accepted Answer

A)  decrease in the wage, causing an excess demand for labor. 
B)  decrease of the labor demand curve. 
C)  increase in the wage, causing an excess supply of labor. 
D)  increase of the labor demand curve. 
E)  increase of the labor supply curve. 
A)  decrease in the wage, causing an excess demand for labor. 
B)  decrease of the labor demand curve. 
C)  increase in the wage, causing an excess supply of labor. 
D)  increase of the labor demand curve. 
E)  increase of the labor supply curve.

Question 5

The market demand curve for labor

Accepted Answer

A)  derives employment totals from the amounts supplied. 
B)  shows, for each price, the quantity of labor demanded in the entire market. 
C)  will be horizontal if the market is perfectly competitive. 
D)  relates the quantity of labor demanded to the product price. 
E)  may slope upward due to external diseconomies. 
A)  derives employment totals from the amounts supplied. 
B)  shows, for each price, the quantity of labor demanded in the entire market. 
C)  will be horizontal if the market is perfectly competitive. 
D)  relates the quantity of labor demanded to the product price. 
E)  may slope upward due to external diseconomies.

Question 6

The following question are based on the following perfectly competitive firm's demand curve for labor:
  
-If this is a profit-maximizing firm and it currently employs five workers,the value of the marginal product of the fifth worker is

Accepted Answer

A)  $5. 
B)  $40. 
C)  $50. 
D)  $200. 
E)  not determinable from the information given. 
A)  $5. 
B)  $40. 
C)  $50. 
D)  $200. 
E)  not determinable from the information given.

Question 7

A significant feature of many collective bargaining contracts in the late 1980s was the

Accepted Answer

A)  negotiation of wage settlements that encouraged supply-side inflation. 
B)  emergence of many more closed shop agreements. 
C)  rejection of two-tier wage structures. 
D)  decertification of national unions in favor of local representation. 
E)  ease with which labor unions agreed to concessions. 
A)  negotiation of wage settlements that encouraged supply-side inflation. 
B)  emergence of many more closed shop agreements. 
C)  rejection of two-tier wage structures. 
D)  decertification of national unions in favor of local representation. 
E)  ease with which labor unions agreed to concessions.

Question 8

Employers are more likely to accept union demands when

Accepted Answer

A)  income, employment, output, and sales levels are high. 
B)  there is significant competition from foreign firms. 
C)  they have the strength to ride out a strike. 
D)  the economy is in a recession. 
E)  unions face significant competition from nonunionized workers. 
A)  income, employment, output, and sales levels are high. 
B)  there is significant competition from foreign firms. 
C)  they have the strength to ride out a strike. 
D)  the economy is in a recession. 
E)  unions face significant competition from nonunionized workers.

Question 9

The supreme governing body of the national union is the

Accepted Answer

A)  AFL-CIO. 
B)  local government. 
C)  executive council. 
D)  National Labor Relations Board. 
E)  convention. 
A)  AFL-CIO. 
B)  local government. 
C)  executive council. 
D)  National Labor Relations Board. 
E)  convention.

Question 10

Determination of the price of labor under perfect competition is based on the assumption that

Accepted Answer

A)  labor is the sole input in the production process. 
B)  buyers of labor are output maximizers. 
C)  prices of inputs and outputs are taken by firms as given. 
D)  the supply curve of labor slopes upward. 
E)  all occupations are equally desirable. 
A)  labor is the sole input in the production process. 
B)  buyers of labor are output maximizers. 
C)  prices of inputs and outputs are taken by firms as given. 
D)  the supply curve of labor slopes upward. 
E)  all occupations are equally desirable.

Question 11

In a perfectly competitive market,it pays the profit-maximizing firm to employ another unit of an input as long as the

Accepted Answer

A)  price of the input is less than the price of the product produced. 
B)  price of the input exceeds the price of the product produced. 
C)  marginal product of the input exceeds the price of the product. 
D)  value of the marginal product of the input exceeds the product's price. 
E)  increase in the firm's costs are less than the price of the output times the increase in total product. 
A)  price of the input is less than the price of the product produced. 
B)  price of the input exceeds the price of the product produced. 
C)  marginal product of the input exceeds the price of the product. 
D)  value of the marginal product of the input exceeds the product's price. 
E)  increase in the firm's costs are less than the price of the output times the increase in total product.

Question 12

A union that negotiates higher wages without directly limiting the labor supply or trying to increase labor demand

Accepted Answer

A)  creates an excess demand for labor. 
B)  has the effect of creating a price floor in that labor market. 
C)  is able to secure jobs for all of its members. 
D)  violates the Landrum-Griffin Act. 
E)  is guilty of a lockout. 
A)  creates an excess demand for labor. 
B)  has the effect of creating a price floor in that labor market. 
C)  is able to secure jobs for all of its members. 
D)  violates the Landrum-Griffin Act. 
E)  is guilty of a lockout.

Question 13

The following question are based on the following information for a firm under conditions of perfect competition:
  
-The demand curve for labor slopes downward because of the falling

Accepted Answer

A)  marginal product of labor. 
B)  supply of labor. 
C)  employment of labor. 
D)  costs of production. 
E)  importance of labor. 
A)  marginal product of labor. 
B)  supply of labor. 
C)  employment of labor. 
D)  costs of production. 
E)  importance of labor.

Question 14

The existence of noncompeting groups and other occupational differences in labor markets means that

Accepted Answer

A)  homogeneous, competitive labor markets are possible in the short run. 
B)  the government must step in to ensure that enough people enter unskilled occupations. 
C)  the market demand curves for all labor groups are highly price inelastic. 
D)  wage differentials will tend to persist over time. 
E)  wages have little or no effect on the supply curves of labor. 
A)  homogeneous, competitive labor markets are possible in the short run. 
B)  the government must step in to ensure that enough people enter unskilled occupations. 
C)  the market demand curves for all labor groups are highly price inelastic. 
D)  wage differentials will tend to persist over time. 
E)  wages have little or no effect on the supply curves of labor.

Question 15

The following question are based on the following information for a firm under conditions of perfect competition:
  
-The inverse relationship between the price of labor and the amount of labor used is called the

Accepted Answer

A)  labor production possibilities curve. 
B)  demand curve for labor. 
C)  total fixed cost curve. 
D)  money wage nexus. 
E)  employment function. 
A)  labor production possibilities curve. 
B)  demand curve for labor. 
C)  total fixed cost curve. 
D)  money wage nexus. 
E)  employment function.

Question 16

Approximately ________ percent of nonfarm workers in the United States are union members.

Accepted Answer

A)  80 
B)  60 
C)  40 
D)  20 
E)  10 
A)  80 
B)  60 
C)  40 
D)  20 
E)  10

Question 17

The value of the marginal product is the same as the change in

Accepted Answer

A)  output from hiring one more unit of input. 
B)  revenue from selling one more unit of output. 
C)  cost from hiring one more unit of input. 
D)  revenue from one additional dollar of cost. 
E)  revenue from hiring one more unit of input. 
A)  output from hiring one more unit of input. 
B)  revenue from selling one more unit of output. 
C)  cost from hiring one more unit of input. 
D)  revenue from one additional dollar of cost. 
E)  revenue from hiring one more unit of input.

Question 18

The negotiation between union and management over wages and working conditions is called

Accepted Answer

A)  union-shop bargaining. 
B)  arbitration. 
C)  disinterested mediation. 
D)  labor relations. 
E)  collective bargaining. 
A)  union-shop bargaining. 
B)  arbitration. 
C)  disinterested mediation. 
D)  labor relations. 
E)  collective bargaining.

Question 19

The following question are based on the following perfectly competitive firm's demand curve for labor:
  
-This firm would hire no labor if the price per day rose above

Accepted Answer

A)  $6. 
B)  $30. 
C)  $40. 
D)  $60. 
E)  $80. 
A)  $6. 
B)  $30. 
C)  $40. 
D)  $60. 
E)  $80.

Question 20

The main reason for the current trend toward a growing spirit of cooperation between unions and management is

Accepted Answer

A)  that there is significant union presence on corporate boards of directors. 
B)  that about half of all American workers now belong to unions, so management is more inclined to listen. 
C)  the lack of urgency in meeting demands, since most workers now enjoy comfortable wages and working conditions. 
D)  a desire to survive in a highly competitive economy under increasing pressure from foreign competition. 
E)  the passage of new federal labor laws that now require cooperation under threat of federal intervention. 
A)  that there is significant union presence on corporate boards of directors. 
B)  that about half of all American workers now belong to unions, so management is more inclined to listen. 
C)  the lack of urgency in meeting demands, since most workers now enjoy comfortable wages and working conditions. 
D)  a desire to survive in a highly competitive economy under increasing pressure from foreign competition. 
E)  the passage of new federal labor laws that now require cooperation under threat of federal intervention.

Exam 10: The Supply and Demand for Labor

In a perfectly competitive economy,individuals would be paid according to their

Under which condition is the checkoff legal?

The price of labor services is generally called

The practice of featherbedding may be viewed as a(n)

The market demand curve for labor

The following question are based on the following perfectly competitive firm's demand curve for labor: -If this is a profit-maximizing firm and it currently employs five workers,the value of the marginal product of the fifth worker is

A significant feature of many collective bargaining contracts in the late 1980s was the

Employers are more likely to accept union demands when

The supreme governing body of the national union is the

Determination of the price of labor under perfect competition is based on the assumption that

In a perfectly competitive market,it pays the profit-maximizing firm to employ another unit of an input as long as the

A union that negotiates higher wages without directly limiting the labor supply or trying to increase labor demand

The following question are based on the following information for a firm under conditions of perfect competition: -The demand curve for labor slopes downward because of the falling

The existence of noncompeting groups and other occupational differences in labor markets means that

The following question are based on the following information for a firm under conditions of perfect competition: -The inverse relationship between the price of labor and the amount of labor used is called the

Approximately ________ percent of nonfarm workers in the United States are union members.

The value of the marginal product is the same as the change in

The negotiation between union and management over wages and working conditions is called

The following question are based on the following perfectly competitive firm's demand curve for labor: -This firm would hire no labor if the price per day rose above

The main reason for the current trend toward a growing spirit of cooperation between unions and management is

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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