Question 1

-In Exhibit P-3, the total labor cost of hiring 15 laborers is

Accepted Answer

A)  $11.50 
B)  $46.50 
C)  $172.50 
D)  $126.00 
E)  $23.30 
A)  $11.50 
B)  $46.50 
C)  $172.50 
D)  $126.00 
E)  $23.30 C

Question 2

Which of the following was seen by labor as an antilabor piece of legislation?

Accepted Answer

A)  Taft-Hartley Act of 1947 
B)  Civil Rights Act of 1964 
C)  Norris-LaGuardia Act of 1932 
D)  Wagner Act of 1935 
E)  Clayton Act of 1914 
A)  Taft-Hartley Act of 1947 
B)  Civil Rights Act of 1964 
C)  Norris-LaGuardia Act of 1932 
D)  Wagner Act of 1935 
E)  Clayton Act of 1914 A

Question 3

Which of the following is not true about a monopsonist in a unionized labor market?

Accepted Answer

A)  It can set the wage rate and hire any desired number of workers at that rate. 
B)  It is the only buyer of labor in a market. 
C)  It tries to extract returns to monopsony power. 
D)  It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor. 
E)  It must bargain in good faith with the union. 
A)  It can set the wage rate and hire any desired number of workers at that rate. 
B)  It is the only buyer of labor in a market. 
C)  It tries to extract returns to monopsony power. 
D)  It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor. 
E)  It must bargain in good faith with the union. A

Question 4

Negotiation between a labor union and the firm that employs unionized workers is called

Accepted Answer

A)  collective bargaining 
B)  a strike 
C)  return to monopsony power 
D)  a labor dispute 
E)  marginal revenue product of labor 
A)  collective bargaining 
B)  a strike 
C)  return to monopsony power 
D)  a labor dispute 
E)  marginal revenue product of labor

Question 5

Which of the following would be considered an unfair labor practice by a union?

Accepted Answer

A)  a strike called by one union in support of another union's strike 
B)  calling for a strike 
C)  demanding a wage rate increase when the firm is in financial trouble 
D)  boycotting the employer's goods 
E)  demanding that the employer bargain in good faith 
A)  a strike called by one union in support of another union's strike 
B)  calling for a strike 
C)  demanding a wage rate increase when the firm is in financial trouble 
D)  boycotting the employer's goods 
E)  demanding that the employer bargain in good faith

Question 6

Unskilled workers first gained union representation under the Congress of Industrial Organization in 1935.

Accepted Answer

A) True 
 B)False

Question 7

The Congress of Industrial Organizations was made up of an organization of craft unions.

Accepted Answer

A) True 
 B)False

Question 8

-In Exhibit P-3, the marginal labor cost of the 14th laborer is

Accepted Answer

A)  $9.00 
B)  $126.00 
C)  $46.50 
D)  $23.30 
E)  $28.80 
A)  $9.00 
B)  $126.00 
C)  $46.50 
D)  $23.30 
E)  $28.80

Question 9

Suppose Sarah Beslin is the Chief Executive Officer (CEO) of an inline skates corporation in Mayberry township. Suppose also that the corporation is a monopsony. It is customary in the U.S. that companies meet with each other at their local community Chamber of Commerce. When Sarah goes to the Mayberry Chamber of Commerce for a CEO meeting,

Accepted Answer

A)  she advises the other CEOs on how to maximize profits 
B)  the meeting participants must beware of taking actions that could be construed as collusion 
C)  there are sessions on buyer and supplier issues 
D)  CEOs discuss how to deal with the rising cost of labor 
E)  she is the only one there 
A)  she advises the other CEOs on how to maximize profits 
B)  the meeting participants must beware of taking actions that could be construed as collusion 
C)  there are sessions on buyer and supplier issues 
D)  CEOs discuss how to deal with the rising cost of labor 
E)  she is the only one there

Question 10

-In Exhibit P-7, suppose the firm is in equilibrium and that the MRP of the last worker hired is $15. Suppose now that the price of the Golden Goat Game triples. What happensto the wage rate?

Accepted Answer

A)  It increases from $10 to $15. 
B)  It decreases from $15 to $10. 
C)  It increases from $10 to $25. 
D)  It decreases from $25 to $10. 
E)  It increases from $15 to $45. 
A)  It increases from $10 to $15. 
B)  It decreases from $15 to $10. 
C)  It increases from $10 to $25. 
D)  It decreases from $25 to $10. 
E)  It increases from $15 to $45.

Question 11

During the process of a strike, both the employer and the union workers will do all of the following except

Accepted Answer

A)  signaling what they will accept 
B)  conceal agendas 
C)  disregard the return to monopsony power 
D)  reassess all relevant factors 
E)  try to obtain the best wage agreement 
A)  signaling what they will accept 
B)  conceal agendas 
C)  disregard the return to monopsony power 
D)  reassess all relevant factors 
E)  try to obtain the best wage agreement

Question 12

Monopsony power is akin to an age-old proposition in economics that scarcity brings power, except in this case power is due to scarce

Accepted Answer

A)  resources 
B)  input purchases 
C)  suppliers 
D)  purchasing time 
E)  product market 
A)  resources 
B)  input purchases 
C)  suppliers 
D)  purchasing time 
E)  product market

Question 13

A person's willingness to work depends on whether the labor market is competitive or monopsonistic.

Accepted Answer

A) True 
 B)False

Question 14

In a union shop, prospective employees must be union members before they can be hired.

Accepted Answer

A) True 
 B)False

Question 15

Workers who organize to bargain collectively for wages and working conditions form a

Accepted Answer

A)  joint council 
B)  labor cartel 
C)  labor federation 
D)  collective 
E)  labor union 
A)  joint council 
B)  labor cartel 
C)  labor federation 
D)  collective 
E)  labor union

Question 16

Strikes are a form of legitimized extortion by which workers withhold labor to extract higher returns for management.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a provision of the Taft-Hartley Act?

Accepted Answer

A)  outlaws the closed shop 
B)  prohibits union unfair labor practices 
C)  requires unions to bargain in good faith 
D)  outlaws striking in support of another union's strike 
E)  creates the National Labor Relations Board 
A)  outlaws the closed shop 
B)  prohibits union unfair labor practices 
C)  requires unions to bargain in good faith 
D)  outlaws striking in support of another union's strike 
E)  creates the National Labor Relations Board

Question 18

The Civil Rights Act of 1964

Accepted Answer

A)  was not relevant to unions 
B)  required unions to adopt affirmative action policies 
C)  protected union workers from rigged elections 
D)  banned yellow-dog contracts 
E)  created the National Labor Relations Board 
A)  was not relevant to unions 
B)  required unions to adopt affirmative action policies 
C)  protected union workers from rigged elections 
D)  banned yellow-dog contracts 
E)  created the National Labor Relations Board

Question 19

If the demand for labor is highly inelastic, an increase in wages secured by the union will cause a big increase in unemployment among union workers.

Accepted Answer

A) True 
 B)False

Question 20

A closed shop and a union shop differ primarily in that

Accepted Answer

A)  nonunion workers can retain employment in a union shop, but not in a closed shop 
B)  nonunion workers can retain employment in a closed shop, but not in a union shop 
C)  union members are not permitted to work in a closed shop, and a worker must be a union member to work in a union shop 
D)  in a closed shop, workers must be union members before they are hired but not in a union shop 
E)  workers must first be union members to work in a union shop 
A)  nonunion workers can retain employment in a union shop, but not in a closed shop 
B)  nonunion workers can retain employment in a closed shop, but not in a union shop 
C)  union members are not permitted to work in a closed shop, and a worker must be a union member to work in a union shop 
D)  in a closed shop, workers must be union members before they are hired but not in a union shop 
E)  workers must first be union members to work in a union shop

-In Exhibit P-3, the total labor cost of hiring 15 laborers is

Which of the following was seen by labor as an antilabor piece of legislation?

Which of the following is not true about a monopsonist in a unionized labor market?

Negotiation between a labor union and the firm that employs unionized workers is called

Which of the following would be considered an unfair labor practice by a union?

Unskilled workers first gained union representation under the Congress of Industrial Organization in 1935.

The Congress of Industrial Organizations was made up of an organization of craft unions.

-In Exhibit P-3, the marginal labor cost of the 14th laborer is

-In Exhibit P-7, suppose the firm is in equilibrium and that the MRP of the last worker hired is $15. Suppose now that the price of the Golden Goat Game triples. What happensto the wage rate?

During the process of a strike, both the employer and the union workers will do all of the following except

Monopsony power is akin to an age-old proposition in economics that scarcity brings power, except in this case power is due to scarce

A person's willingness to work depends on whether the labor market is competitive or monopsonistic.

In a union shop, prospective employees must be union members before they can be hired.

Workers who organize to bargain collectively for wages and working conditions form a

Strikes are a form of legitimized extortion by which workers withhold labor to extract higher returns for management.

Which of the following is not a provision of the Taft-Hartley Act?

The Civil Rights Act of 1964

If the demand for labor is highly inelastic, an increase in wages secured by the union will cause a big increase in unemployment among union workers.

A closed shop and a union shop differ primarily in that

Introduction

Production Possibilities and Opportunity Costs

Demand and Supply

Elasticity

Happiness, Utility, and Consumer Choice

Price Ceilings and Price Floors

Entrepreneurship and Business Ownership

Costs of Production

Maximizing Profit

Identifying Markets and Market Structures

Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition

Price and Output Determination Under Oligopoly

Antitrust and Regulation

Externalities, Market Failure, and Public Choice

Wage Rates in Competitive Labor Markets

Interest, Rent, and Profit

Income Distribution and Poverty

International Trade

Exchange Rates, Balance of Payments, and International Debt

The Economic Problems of Less-Developed Economies

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Exam 16: Wages and Employment: Monopsony and Labor Unions

-In Exhibit P-3, the total labor cost of hiring 15 laborers is

Which of the following was seen by labor as an antilabor piece of legislation?

Which of the following is not true about a monopsonist in a unionized labor market?

Negotiation between a labor union and the firm that employs unionized workers is called

Which of the following would be considered an unfair labor practice by a union?

Unskilled workers first gained union representation under the Congress of Industrial Organization in 1935.

The Congress of Industrial Organizations was made up of an organization of craft unions.

-In Exhibit P-3, the marginal labor cost of the 14th laborer is

-In Exhibit P-7, suppose the firm is in equilibrium and that the MRP of the last worker hired is $15. Suppose now that the price of the Golden Goat Game triples. What happensto the wage rate?

During the process of a strike, both the employer and the union workers will do all of the following except

Monopsony power is akin to an age-old proposition in economics that scarcity brings power, except in this case power is due to scarce

A person's willingness to work depends on whether the labor market is competitive or monopsonistic.

In a union shop, prospective employees must be union members before they can be hired.

Workers who organize to bargain collectively for wages and working conditions form a

Strikes are a form of legitimized extortion by which workers withhold labor to extract higher returns for management.

Which of the following is not a provision of the Taft-Hartley Act?

The Civil Rights Act of 1964

If the demand for labor is highly inelastic, an increase in wages secured by the union will cause a big increase in unemployment among union workers.

A closed shop and a union shop differ primarily in that

Introduction

Production Possibilities and Opportunity Costs

Demand and Supply

Elasticity

Happiness, Utility, and Consumer Choice

Price Ceilings and Price Floors

Entrepreneurship and Business Ownership

Costs of Production

Maximizing Profit

Identifying Markets and Market Structures

Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition

Price and Output Determination Under Oligopoly

Antitrust and Regulation

Externalities, Market Failure, and Public Choice

Wage Rates in Competitive Labor Markets

Interest, Rent, and Profit

Income Distribution and Poverty

International Trade

Exchange Rates, Balance of Payments, and International Debt

The Economic Problems of Less-Developed Economies

Filters