Question 1

The market labor supply curve is

Accepted Answer

A) the sum of individual labor supply curves at each quantity of labor 
B) the sum of individual labor supply curves at each wage rate 
C) the average of all individual labor supply curves 
D) the sum of the upward-sloping portions of individual labor supply curves 
E) the sum of the downward-sloping portions of individual labor supply curves 
A) the sum of individual labor supply curves at each quantity of labor 
B) the sum of individual labor supply curves at each wage rate 
C) the average of all individual labor supply curves 
D) the sum of the upward-sloping portions of individual labor supply curves 
E) the sum of the downward-sloping portions of individual labor supply curves B

Question 2

The threat of a strike

Accepted Answer

A) can serve as an incentive for labor and management to reach an agreement 
B) destroys incentives for labor and management to reach an agreement 
C) is usually not taken seriously because employers know the workers will suffer during a strike 
D) is not taken seriously unless management expects to suffer 
E) is not taken seriously if public safety is at risk 
A) can serve as an incentive for labor and management to reach an agreement 
B) destroys incentives for labor and management to reach an agreement 
C) is usually not taken seriously because employers know the workers will suffer during a strike 
D) is not taken seriously unless management expects to suffer 
E) is not taken seriously if public safety is at risk A

Question 3

A labor union is a group of workers and business owners who join together to improve working conditions.

Accepted Answer

A) True 
 B)False  False

Question 4

It may be that unions increase worker productivity by

Accepted Answer

A) minimizing conflicts, resolving differences, and reducing job turnover 
B) using seniority rules to keep the most experienced workers employed 
C) increasing job turnover so that the least experienced workers quit 
D) allowing workers to goof off, which improves morale 
E) increasing the number of workers required to perform each task 
A) minimizing conflicts, resolving differences, and reducing job turnover 
B) using seniority rules to keep the most experienced workers employed 
C) increasing job turnover so that the least experienced workers quit 
D) allowing workers to goof off, which improves morale 
E) increasing the number of workers required to perform each task

Question 5

If an electricians' union is successful in its attempts to restrict entry into that craft, it will shift

Accepted Answer

A) the supply curve of electricians to the right 
B) the supply curve of electricians to the left 
C) the demand curve for electricians to the right 
D) the demand curve for electricians to the left 
E) both the supply and demand curves for electricians 
A) the supply curve of electricians to the right 
B) the supply curve of electricians to the left 
C) the demand curve for electricians to the right 
D) the demand curve for electricians to the left 
E) both the supply and demand curves for electricians

Question 6

Unions are less likely to strike today than in the past because

Accepted Answer

A) real wages have increased over the last 20 years 
B) employers are less willing to hire strike breakers 
C) most workers in the U.S.are already union members 
D) more workers, both union and nonunion, are willing to cross picket lines 
E) many high-profile strikes (e.g., Caterpillar)have succeeded in winning job security 
A) real wages have increased over the last 20 years 
B) employers are less willing to hire strike breakers 
C) most workers in the U.S.are already union members 
D) more workers, both union and nonunion, are willing to cross picket lines 
E) many high-profile strikes (e.g., Caterpillar)have succeeded in winning job security

Question 7

The equilibrium wage

Accepted Answer

A) is the same in all labor markets 
B) occurs where the supply of labor curve begins to bend backward 
C) cannot be calculated because there are so many labor markets 
D) is determined by the market demand for labor and the market supply of labor 
E) is irrelevant because of unions 
A) is the same in all labor markets 
B) occurs where the supply of labor curve begins to bend backward 
C) cannot be calculated because there are so many labor markets 
D) is determined by the market demand for labor and the market supply of labor 
E) is irrelevant because of unions

Question 8

Leisure time is not subject to diminishing marginal utility.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would reduce the supply of an athletic trainer's services at today's wage rate, other things constant?

Accepted Answer

A) a reduction in the individual's income from other sources 
B) an improvement in the quality of the work environment 
C) an increase in the amount of control the trainer has over the use of time on the job 
D) a trainer's future earning possibilities go down due to a new negative image associated with this work 
E) an increase in the trainer's preference for this type of work 
A) a reduction in the individual's income from other sources 
B) an improvement in the quality of the work environment 
C) an increase in the amount of control the trainer has over the use of time on the job 
D) a trainer's future earning possibilities go down due to a new negative image associated with this work 
E) an increase in the trainer's preference for this type of work

Question 10

Because of discrimination, which of the following have systematically earned less than others of equal ability?

Accepted Answer

A) only African-Americans 
B) only Hispanics 
C) only African-Americans and Hispanics 
D) African-Americans, Hispanics, and women 
E) only Hispanics and women 
A) only African-Americans 
B) only Hispanics 
C) only African-Americans and Hispanics 
D) African-Americans, Hispanics, and women 
E) only Hispanics and women

Question 11

Other things equal, the supply of labor will be lower to a job that

Accepted Answer

A) offers more prestige 
B) offers valuable on-the-job training 
C) requires advanced skills or education 
D) provides a climate-controlled work environment 
E) allows for flexible work schedules 
A) offers more prestige 
B) offers valuable on-the-job training 
C) requires advanced skills or education 
D) provides a climate-controlled work environment 
E) allows for flexible work schedules

Question 12

An increase in the wage rate will decrease the demand for labor.

Accepted Answer

A) True 
 B)False

Question 13

If union demands result in a surplus of labor in some industries, the resulting

Accepted Answer

A) increased demand for labor in the nonunion sector drives nonunion wages up 
B) decreased demand for labor in the nonunion sector drives nonunion wages down 
C) increased supply of labor in the nonunion sector drives nonunion wages down 
D) increased supply of labor in the nonunion sector drives nonunion wages up 
E) decreased supply of labor in the nonunion sector drives nonunion wages up 
A) increased demand for labor in the nonunion sector drives nonunion wages up 
B) decreased demand for labor in the nonunion sector drives nonunion wages down 
C) increased supply of labor in the nonunion sector drives nonunion wages down 
D) increased supply of labor in the nonunion sector drives nonunion wages up 
E) decreased supply of labor in the nonunion sector drives nonunion wages up

Question 14

Exhibit 12-9   In Exhibit 12-9, the labor supply and labor demand in a unionized labor market is represented by the demand curve D0 and Supply curve S0.Which of the market equilibria is the most likely outcome of the union imposing more restrictive licensing requirements?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
E) either a or d 
A) a 
B) b 
C) c 
D) d 
E) either a or d

Question 15

An appeal to consumers to purchase union-made products represents an attempt to

Accepted Answer

A) increase the supply of union labor 
B) increase the demand for union labor 
C) decrease the supply of union labor 
D) decrease the quantity demanded of union labor 
E) decrease the demand for union labor 
A) increase the supply of union labor 
B) increase the demand for union labor 
C) decrease the supply of union labor 
D) decrease the quantity demanded of union labor 
E) decrease the demand for union labor

Question 16

If a union negotiates a wage above the market equilibrium, each firm hiring union members faces

Accepted Answer

A) a perfectly inelastic supply curve for labor 
B) a perfectly elastic supply curve for labor 
C) a perfectly inelastic demand curve for labor 
D) a perfectly elastic demand curve for labor 
E) perfectly inelastic supply and demand curves for labor 
A) a perfectly inelastic supply curve for labor 
B) a perfectly elastic supply curve for labor 
C) a perfectly inelastic demand curve for labor 
D) a perfectly elastic demand curve for labor 
E) perfectly inelastic supply and demand curves for labor

Question 17

The process by which union members and the firm's management negotiate a contract is called

Accepted Answer

A) settlement negotiation 
B) collective bargaining 
C) a union contract 
D) collection arbitration 
E) settlement bargaining 
A) settlement negotiation 
B) collective bargaining 
C) a union contract 
D) collection arbitration 
E) settlement bargaining

Question 18

A medical doctor who specializes in a particular field (e.g., surgery)generally earns more than a general practitioner because

Accepted Answer

A) of greater education and training requirements 
B) of differences in labor mobility 
C) a general practitioner is more likely to work in an urban area 
D) of discrimination 
E) a general practitioner treats a greater number of patients per day 
A) of greater education and training requirements 
B) of differences in labor mobility 
C) a general practitioner is more likely to work in an urban area 
D) of discrimination 
E) a general practitioner treats a greater number of patients per day

Question 19

If a person's labor supply curve is positively sloped, the income effect outweighs the substitution effect.

Accepted Answer

A) True 
 B)False

Question 20

If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market

Accepted Answer

A) is horizontal at that particular wage rate until it intersects the original supply of labor curve 
B) is vertical at that particular wage rate until it intersects the original supply of labor curve 
C) shifts to the left 
D) disappears 
E) slopes downward 
A) is horizontal at that particular wage rate until it intersects the original supply of labor curve 
B) is vertical at that particular wage rate until it intersects the original supply of labor curve 
C) shifts to the left 
D) disappears 
E) slopes downward

Exam 12: Labor Markets and Labor Unions

The market labor supply curve is

The threat of a strike

A labor union is a group of workers and business owners who join together to improve working conditions.

It may be that unions increase worker productivity by

If an electricians' union is successful in its attempts to restrict entry into that craft, it will shift

Unions are less likely to strike today than in the past because

The equilibrium wage

Leisure time is not subject to diminishing marginal utility.

Which of the following would reduce the supply of an athletic trainer's services at today's wage rate, other things constant?

Because of discrimination, which of the following have systematically earned less than others of equal ability?

Other things equal, the supply of labor will be lower to a job that

An increase in the wage rate will decrease the demand for labor.

If union demands result in a surplus of labor in some industries, the resulting

Exhibit 12-9 In Exhibit 12-9, the labor supply and labor demand in a unionized labor market is represented by the demand curve D0 and Supply curve S0.Which of the market equilibria is the most likely outcome of the union imposing more restrictive licensing requirements?

An appeal to consumers to purchase union-made products represents an attempt to

If a union negotiates a wage above the market equilibrium, each firm hiring union members faces

The process by which union members and the firm's management negotiate a contract is called

A medical doctor who specializes in a particular field (e.g., surgery)generally earns more than a general practitioner because

If a person's labor supply curve is positively sloped, the income effect outweighs the substitution effect.

If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exhibit 12-9 In Exhibit 12-9, the labor supply and labor demand in a unionized labor market is represented by the demand curve D₀ and Supply curve S₀.Which of the market equilibria is the most likely outcome of the union imposing more restrictive licensing requirements?