Question 1

The largest employer in the United States is

Accepted Answer

A) The federal government. 
B) General Motors. 
C) Walmart. 
D) Ford Motor Company. 
A) The federal government. 
B) General Motors. 
C) Walmart. 
D) Ford Motor Company.

Question 2

The market labor supply curve is downward-sloping.

Accepted Answer

A) True 
 B)False

Question 3

What are the optimal wage and employment level from the perspective of a union in Figure 31.1?

Accepted Answer

A) $11;32 workers. 
B) $5;16 workers. 
C) $4;13 workers. 
D) $8;10 workers. 
A) $11;32 workers. 
B) $5;16 workers. 
C) $4;13 workers. 
D) $8;10 workers.

Question 4

Union work rules may restrict productivity in all of the following ways except

Accepted Answer

A) Limiting the pace of production. 
B) Restricting the types of jobs a particular individual can do. 
C) Requiring a maximum number of workers for a certain task. 
D) Requiring a minimum number of workers for a certain task. 
A) Limiting the pace of production. 
B) Restricting the types of jobs a particular individual can do. 
C) Requiring a maximum number of workers for a certain task. 
D) Requiring a minimum number of workers for a certain task.

Question 5

Unions do not need to worry about the effects of greater employment numbers on the wage rate.

Accepted Answer

A) True 
 B)False

Question 6

When only one buyer has access to a particular labor market,

Accepted Answer

A) A monopoly exists. 
B) There is no seller concentration. 
C) A monopsony exists. 
D) There is no buyer concentration. 
A) A monopoly exists. 
B) There is no seller concentration. 
C) A monopsony exists. 
D) There is no buyer concentration.

Question 7

A monopsony

Accepted Answer

A) Is a market in which there is a only one buyer. 
B) Is a market in which there is a single seller. 
C) Occurs when sellers have declining long-run average costs. 
D) Occurs when buyers have declining long-run average costs. 
A) Is a market in which there is a only one buyer. 
B) Is a market in which there is a single seller. 
C) Occurs when sellers have declining long-run average costs. 
D) Occurs when buyers have declining long-run average costs.

Question 8

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000,the marginal wage of the 33rd worker is

Accepted Answer

A) $273. 
B) $3,667. 
C) $121,000. 
D) $9,000. 
A) $273. 
B) $3,667. 
C) $121,000. 
D) $9,000.

Question 9

Labor markets where power exists on both the demand side and the supply side are rare.

Accepted Answer

A) True 
 B)False

Question 10

The refusal to work by unionized labor is an example of

Accepted Answer

A) The right to work. 
B) A lockout. 
C) Collective bargaining. 
D) A strike. 
A) The right to work. 
B) A lockout. 
C) Collective bargaining. 
D) A strike.

Question 11

If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11th worker is

Accepted Answer

A) $4 per hour. 
B) $14 per hour. 
C) $154 per hour. 
D) -$1 per hour. 
A) $4 per hour. 
B) $14 per hour. 
C) $154 per hour. 
D) -$1 per hour.

Question 12

Because a union is a form of monopoly,it must be concerned about the ________ slope of the demand curve for labor.

Accepted Answer

A) vertical 
B) horizontal 
C) downward 
D) upward 
A) vertical 
B) horizontal 
C) downward 
D) upward

Question 13

The relative decline in manufacturing in the United States has contributed to the decline in unionization.

Accepted Answer

A) True 
 B)False

Question 14

What is the difference between the competitive level of employment and the union optimum level of employment in Figure 31.1?

Accepted Answer

A) 22 workers. 
B) 6 workers. 
C) 3 workers. 
D) Zero. 
A) 22 workers. 
B) 6 workers. 
C) 3 workers. 
D) Zero.

Question 15

Increased global competition is one reason why unionization has become more popular.

Accepted Answer

A) True 
 B)False

Question 16

Unionization rates have

Accepted Answer

A) Risen in the private sector but fallen in the public sector. 
B) Fallen in both the private and public sectors. 
C) Risen in the United States due to new favorable legislation. 
D) Fallen in the private sector but risen in the public sector. 
A) Risen in the private sector but fallen in the public sector. 
B) Fallen in both the private and public sectors. 
C) Risen in the United States due to new favorable legislation. 
D) Fallen in the private sector but risen in the public sector.

Question 17

If a firm hires 10 workers at $6 per hour each and the 11th worker will be hired only if the wage rate falls to $5 per hour,the marginal wage rate must be

Accepted Answer

A) -$5. 
B) $5. 
C) -$5.50. 
D) $5.50. 
A) -$5. 
B) $5. 
C) -$5.50. 
D) $5.50.

Question 18

The current unionization rate for the U.S.labor force

Accepted Answer

A) Has been rising since the mid 
B) Reflects the relative decline in U.S.manufacturing. 
C) Is above 20 percent. 
D) Has increased due to the growth of the service sector. 
A) Has been rising since the mid 
B) Reflects the relative decline in U.S.manufacturing. 
C) Is above 20 percent. 
D) Has increased due to the growth of the service sector.

Question 19

A primary objective of unions is to raise the wages of union members.

Accepted Answer

A) True 
 B)False

Question 20

The distinguishing characteristic of labor market monopsonies is the fact that

Accepted Answer

A) They can hire any number of workers they want without affecting the market wage. 
B) Their hiring decisions directly affect the market wage rate. 
C) They can pay any wage they want for the number of workers they need. 
D) They must usually hire unionized workers. 
A) They can hire any number of workers they want without affecting the market wage. 
B) Their hiring decisions directly affect the market wage rate. 
C) They can pay any wage they want for the number of workers they need. 
D) They must usually hire unionized workers.

Exam 31: Labor Unions

The largest employer in the United States is

The market labor supply curve is downward-sloping.

What are the optimal wage and employment level from the perspective of a union in Figure 31.1?

Union work rules may restrict productivity in all of the following ways except

Unions do not need to worry about the effects of greater employment numbers on the wage rate.

When only one buyer has access to a particular labor market,

A monopsony

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000,the marginal wage of the 33rd worker is

Labor markets where power exists on both the demand side and the supply side are rare.

The refusal to work by unionized labor is an example of

If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11th worker is

Because a union is a form of monopoly,it must be concerned about the ________ slope of the demand curve for labor.

The relative decline in manufacturing in the United States has contributed to the decline in unionization.

What is the difference between the competitive level of employment and the union optimum level of employment in Figure 31.1?

Increased global competition is one reason why unionization has become more popular.

Unionization rates have

If a firm hires 10 workers at $6 per hour each and the 11th worker will be hired only if the wage rate falls to $5 per hour,the marginal wage rate must be

The current unionization rate for the U.S.labor force

A primary objective of unions is to raise the wages of union members.

The distinguishing characteristic of labor market monopsonies is the fact that

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11^th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11^th worker is

If a firm hires 10 workers at $6 per hour each and the 11^th worker will be hired only if the wage rate falls to $5 per hour,the marginal wage rate must be