Question 1

Given that unions face a downward-sloping demand curve for labor,which of the following is not true concerning the optimal union wage rate at a given employment level?

Accepted Answer

A) It exceeds the competitive wage. 
B) It is above the labor supply curve. 
C) It is above the marginal wage. 
D) It is above the labor demand curve. 
A) It exceeds the competitive wage. 
B) It is above the labor supply curve. 
C) It is above the marginal wage. 
D) It is above the labor demand curve.

Question 2

From the 1930s until today,unions have experienced particularly fast growth in the United States.

Accepted Answer

A) True 
 B)False

Question 3

Distinguish between the market wage and the marginal wage.Why is the marginal wage significant to an employer and to a labor union?

Accepted Answer

The market wage is the actual wage the e

Question 4

An oligopsony exists if

Accepted Answer

A) Only a few firms produce most of the industry's output. 
B) Only a few firms account for most of the industry's employment. 
C) Only one firm accounts for most of the industry's employment. 
D) There is no buyer concentration in the labor market. 
A) Only a few firms produce most of the industry's output. 
B) Only a few firms account for most of the industry's employment. 
C) Only one firm accounts for most of the industry's employment. 
D) There is no buyer concentration in the labor market.

Exam 31: Labor Unions

Given that unions face a downward-sloping demand curve for labor,which of the following is not true concerning the optimal union wage rate at a given employment level?

From the 1930s until today,unions have experienced particularly fast growth in the United States.

Distinguish between the market wage and the marginal wage.Why is the marginal wage significant to an employer and to a labor union?

An oligopsony exists if

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