Exam 10: Wage Determination

A firm in a purely competitive product market finds it must increase wages to attract extra workers.The firm will hire labor up to the point where the marginal:

Suppose a powerful labor union negotiates a wage for its members above the equilibrium wage rate in a previously nonunionized market.A likely result of this is that:

Exclusive unionism has the economic effect of:

The demand for labor will most likely increase when the price of a:

The demand for labor would most likely become more elastic as a result of:

Wage differentials occur for all the following reasons except:

Refer to the above graph.The producer illustrated:

Other things being equal,a labor union will find it harder to get a wage increase for its members the:

If a factor of production has many close substitutes,we would expect that its price elasticity of demand would be:

Gambling increases in popularity,thus increasing the demand for card dealers at casinos.This would be caused by which change in a determinant of labor demand?

In which case below will the elasticity of demand for laborers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is:

In a purely competitive market for economic resources,a firm's marginal revenue product for a factor could decrease as a result of a(n):

Marginal revenue product is the increase in:

If there is a decrease in the demand for union electrical workers and at the same time there is a drastic cutback in the numbers of electricians trained by the union,then the:

If two jobs (X and Y)are similar,and there is an increase in the nonmonetary benefits of job X,with no change in the nonmonetary benefits of job Y,we would expect:

Refer to the above graph,which shows the supply and demand for unionized manufacturing workers.The initial equilibrium point is point 1.The wages paid in comparable nonunion occupations increase significantly,while at the same time the price of manufactured goods increases.Which point would represent the new equilibrium?

Refer to the above graph.Comparing monopsony with pure competition in the sale of output and hiring of labor services,the difference in the wage rate will be:

Which is an example of a change in the price of another resource that decreases labor demand?

Suppose capital is readily substitutable for labor and that the price of capital falls.We can conclude that the:

In the demand-enhancing union model,a union increases the wage rate by increasing labor demand through actions that increase product demand,raise labor productivity,or alter the prices of related inputs.