Question 1

Wage-rate increases will reduce employment. The reduction in jobs will be the greatest when the demand for labour is:

Accepted Answer

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

Question 2

Assume that the steel workers' union is successful in obtaining a 10 percent wage increase from its employers. This wage increase will result in higher prices for steel. Employment in the steel industry will decline the least if:

Accepted Answer

A)  the supply of foreign-made steel is relatively inelastic. 
B)  the demand for Canadian-made steel is relatively inelastic. 
C)  there are a large number of substitutes for steel. 
D)  Canadians have no preference for using Canadian-made steel over imported steel. 
A)  the supply of foreign-made steel is relatively inelastic. 
B)  the demand for Canadian-made steel is relatively inelastic. 
C)  there are a large number of substitutes for steel. 
D)  Canadians have no preference for using Canadian-made steel over imported steel.

Question 3

Which of the following statements is true?

Accepted Answer

A)  If the MRP is greater than the MRC then a firm should keep the number of workers that it has. 
B)  If the MRP is greater than the MRC then a firm should hire more workers. 
C)  If the MRP is less than the MRC then a firm should hire more workers. 
D)  If the MRP is less than the MRC then a firm should keep the number of workers it has. 
A)  If the MRP is greater than the MRC then a firm should keep the number of workers that it has. 
B)  If the MRP is greater than the MRC then a firm should hire more workers. 
C)  If the MRP is less than the MRC then a firm should hire more workers. 
D)  If the MRP is less than the MRC then a firm should keep the number of workers it has.

Question 4

Craft unions try to shift the supply curve for their workers to the left in order to obtain higher wages. Which of the following will not result in a shift of the supply curve to the left?

Accepted Answer

A)  setting high initiation fees for new union members 
B)  lobbying the federal government to restrict immigration 
C)  compulsory retirement programs 
D)  negotiating featherbedding provisions 
A)  setting high initiation fees for new union members 
B)  lobbying the federal government to restrict immigration 
C)  compulsory retirement programs 
D)  negotiating featherbedding provisions

Question 5

The marginal resource cost is:

Accepted Answer

A)  always equal to the wage rate. 
B)  equal to the marginal product multiplied by the marginal cost. 
C)  equal to the extra cost of hiring one more worker. 
D)  equal to the marginal cost of the next unit produced. 
A)  always equal to the wage rate. 
B)  equal to the marginal product multiplied by the marginal cost. 
C)  equal to the extra cost of hiring one more worker. 
D)  equal to the marginal cost of the next unit produced.

Question 6

Insisting that an employee is a union member prior to being hired is:

Accepted Answer

A)  a type of discrimination. 
B)  a closed shop arrangement. 
C)  an equalization difference. 
D)  none of the above 
A)  a type of discrimination. 
B)  a closed shop arrangement. 
C)  an equalization difference. 
D)  none of the above

Question 7

An iron worker welding steel on a new high rise is paid an extra $5.50 per hour, this payment is called:

Accepted Answer

A)  a wage differential. 
B)  a compensating wage differential. 
C)  a skill wage differential. 
D)  an equal payment. 
A)  a wage differential. 
B)  a compensating wage differential. 
C)  a skill wage differential. 
D)  an equal payment.

Question 8

Which of the following is consistent with a negatively sloped labour supply cure?

Accepted Answer

A)  the substitution and income effects are equal 
B)  the substitution effect is larger than the income effect 
C)  the substitution and income effects are indeterminate 
D)  the substitution effect is smaller than the income effect 
A)  the substitution and income effects are equal 
B)  the substitution effect is larger than the income effect 
C)  the substitution and income effects are indeterminate 
D)  the substitution effect is smaller than the income effect

Question 9

Which of the following provides the best explanation for wage differences between dentists and cashiers?

Accepted Answer

A)  geographic barrier 
B)  skill or education requirement barrier 
C)  discrimination barrier 
D)  lack of information barrier 
A)  geographic barrier 
B)  skill or education requirement barrier 
C)  discrimination barrier 
D)  lack of information barrier

Question 10

The marginal revenue product is determined by:

Accepted Answer

A)  multiplying the marginal product by the price. 
B)  multiplying the marginal product by the marginal cost. 
C)  multiplying the marginal cost by the marginal revenue. 
D)  multiplying the marginal product by the marginal revenue. 
A)  multiplying the marginal product by the price. 
B)  multiplying the marginal product by the marginal cost. 
C)  multiplying the marginal cost by the marginal revenue. 
D)  multiplying the marginal product by the marginal revenue.

Wage-rate increases will reduce employment. The reduction in jobs will be the greatest when the demand for labour is:

Assume that the steel workers' union is successful in obtaining a 10 percent wage increase from its employers. This wage increase will result in higher prices for steel. Employment in the steel industry will decline the least if:

Which of the following statements is true?

Craft unions try to shift the supply curve for their workers to the left in order to obtain higher wages. Which of the following will not result in a shift of the supply curve to the left?

The marginal resource cost is:

Insisting that an employee is a union member prior to being hired is:

An iron worker welding steel on a new high rise is paid an extra $5.50 per hour, this payment is called:

Which of the following is consistent with a negatively sloped labour supply cure?

Which of the following provides the best explanation for wage differences between dentists and cashiers?

The marginal revenue product is determined by:

Introductory Concepts

The Operation of a Market

The Role of Government in a Market Economy

Government in Canada

Economic Indicators

Determination of National Income

Money and the Canadian Banking System

Stabilization Policy

International Economics

Industrial Organization in Canada

Production Costs

Perfect Competition : Theory and Practice

How Imperfect Competition Functions

Filters

Exam 14: The Labour Market

Wage-rate increases will reduce employment. The reduction in jobs will be the greatest when the demand for labour is:

Assume that the steel workers' union is successful in obtaining a 10 percent wage increase from its employers. This wage increase will result in higher prices for steel. Employment in the steel industry will decline the least if:

Which of the following statements is true?

Craft unions try to shift the supply curve for their workers to the left in order to obtain higher wages. Which of the following will not result in a shift of the supply curve to the left?

The marginal resource cost is:

Insisting that an employee is a union member prior to being hired is:

An iron worker welding steel on a new high rise is paid an extra $5.50 per hour, this payment is called:

Which of the following is consistent with a negatively sloped labour supply cure?

Which of the following provides the best explanation for wage differences between dentists and cashiers?

The marginal revenue product is determined by:

Introductory Concepts

The Operation of a Market

The Role of Government in a Market Economy

Government in Canada

Economic Indicators

Determination of National Income

Money and the Canadian Banking System

Stabilization Policy

International Economics

Industrial Organization in Canada

Production Costs

Perfect Competition : Theory and Practice

How Imperfect Competition Functions

Filters