Question 1

Suppose a worker feels unhappy with his job and consequently quits.This illustrates

Accepted Answer

A) the voice mechanism. 
B) featherbedding. 
C) the exit mechanism. 
D) blacklisting. 
A) the voice mechanism. 
B) featherbedding. 
C) the exit mechanism. 
D) blacklisting.

Question 2

Which of the following involves the creation of human capital?

Accepted Answer

A) The XYZ Corporation upgrades the machinery on its assembly line. 
B) Jones receives apprenticeship training as a carpenter. 
C) Smith buys 30 shares of common stock. 
D) A retired person decides to reenter the labor force. 
A) The XYZ Corporation upgrades the machinery on its assembly line. 
B) Jones receives apprenticeship training as a carpenter. 
C) Smith buys 30 shares of common stock. 
D) A retired person decides to reenter the labor force.

Question 3

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage aspects, the two firms offer the same job characteristics.We would expect

Accepted Answer

A) wage rates at Ajax to be higher than at Acme. 
B) wage rates at Ajax to be lower than at Acme. 
C) wage rates at Ajax and Acme to be the same. 
D) workers at Ajax would have to be monitored more closely than those at Acme. 
A) wage rates at Ajax to be higher than at Acme. 
B) wage rates at Ajax to be lower than at Acme. 
C) wage rates at Ajax and Acme to be the same. 
D) workers at Ajax would have to be monitored more closely than those at Acme.

Question 4

In the demand-enhancing union model, a union tries to increase the wage rate through actions such as promoting the industry's product or raising labor productivity.

Accepted Answer

A) True 
 B)False

Question 5

The earnings of highly educated workers

Accepted Answer

A) rise more slowly than those of less-educated workers. 
B) rise more rapidly than those of less-educated workers. 
C) rise at about the same rate as those of less-educated workers. 
D) stagnate earlier than do those of less-educated workers. 
A) rise more slowly than those of less-educated workers. 
B) rise more rapidly than those of less-educated workers. 
C) rise at about the same rate as those of less-educated workers. 
D) stagnate earlier than do those of less-educated workers.

Question 6

Minimum wage laws have contributed to higher unemployment levels among teenagers and minorities.

Accepted Answer

A) True 
 B)False

Question 7

Inclusive unionism is practiced mostly by

Accepted Answer

A) professional and semiprofessional employees. 
B) small unions consisting of skilled workers, such as the bricklayers. 
C) industrial unions. 
D) craft unions. 
A) professional and semiprofessional employees. 
B) small unions consisting of skilled workers, such as the bricklayers. 
C) industrial unions. 
D) craft unions.

Question 8

In 2015, approximately 5 percent of all work time lost was due to work stoppages.

Accepted Answer

A) True 
 B)False

Question 9

Independent unions

Accepted Answer

A) have greater combined membership than the AFL-CIO. 
B) are not affiliated with the AFL-CIO or Change to Win. 
C) include the United Autoworkers and United Steelworkers. 
D) have about the same combined membership as the AFL-CIO. 
A) have greater combined membership than the AFL-CIO. 
B) are not affiliated with the AFL-CIO or Change to Win. 
C) include the United Autoworkers and United Steelworkers. 
D) have about the same combined membership as the AFL-CIO.

Question 10

A monopsonistic employer may sell its product in a competitive market.

Accepted Answer

A) True 
 B)False

Question 11

Unions may increase productivity by

Accepted Answer

A) providing an exit mechanism for workers. 
B) increasing worker turnover so that younger workers are more likely to be employed. 
C) reducing the amount of capital used per worker. 
D) providing a voice mechanism for workers. 
A) providing an exit mechanism for workers. 
B) increasing worker turnover so that younger workers are more likely to be employed. 
C) reducing the amount of capital used per worker. 
D) providing a voice mechanism for workers.

Question 12

The supply curve of labor faced by an individual firm in a purely competitive labor market is horizontal.

Accepted Answer

A) True 
 B)False

Question 13

The idea of compensating differences is used

Accepted Answer

A) by inclusive unions as an argument in bargaining for wage rate increases. 
B) to justify the application of minimum wages to low-wage labor markets. 
C) to explain the divergence between wage rates and marginal resource cost. 
D) to explain wage rate differences based on differing nonmonetary aspects of jobs. 
A) by inclusive unions as an argument in bargaining for wage rate increases. 
B) to justify the application of minimum wages to low-wage labor markets. 
C) to explain the divergence between wage rates and marginal resource cost. 
D) to explain wage rate differences based on differing nonmonetary aspects of jobs.

Question 14

Labor unions are restrained in their wage demands because

Accepted Answer

A) legislation limits annual increases in nominal wages to 6 percent. 
B) the labor demand curve is downsloping. 
C) marginal wage cost curves lie above labor supply curves in most labor markets. 
D) most unions deal with monopsonists who have superior bargaining power. 
A) legislation limits annual increases in nominal wages to 6 percent. 
B) the labor demand curve is downsloping. 
C) marginal wage cost curves lie above labor supply curves in most labor markets. 
D) most unions deal with monopsonists who have superior bargaining power.

Question 15

Which of the following factors is not relevant in explaining the persistence of wage differentials?

Accepted Answer

A) labor immobility 
B) compensating differences 
C) free public education 
D) noncompeting groups 
A) labor immobility 
B) compensating differences 
C) free public education 
D) noncompeting groups

Question 16

Pay plans that are designed to elicit a desired level of performance from workers are generally called

Accepted Answer

A) basic wage-plus-fringe benefits plans. 
B) annual-and-renewable salary plans. 
C) pay for performance plans. 
D) design-and-performance plans. 
A) basic wage-plus-fringe benefits plans. 
B) annual-and-renewable salary plans. 
C) pay for performance plans. 
D) design-and-performance plans.

Question 17

If all workers were homogeneous, all jobs were equally attractive to workers, and labor markets were perfectly competitive,

Accepted Answer

A) compensating differences would cause wage differentials. 
B) noncompeting groups of workers would result in wage differentials. 
C) all workers would receive the same wage rate. 
D) worker mobility would occur such that wage differentials would widen. 
A) compensating differences would cause wage differentials. 
B) noncompeting groups of workers would result in wage differentials. 
C) all workers would receive the same wage rate. 
D) worker mobility would occur such that wage differentials would widen.

Question 18

In 2015, food workers had a much higher unionization rate than teachers, according to U.S.Bureau of Labor Statistics data.

Accepted Answer

A) True 
 B)False

Question 19

An industrial union

Accepted Answer

A) is most concerned with increasing the demand for workers in an industry. 
B) restricts the supply of labor through licensing requirements. 
C) organizes a wide range of workers in an industry to gain bargaining power. 
D) is most effective in a purely competitive industry. 
A) is most concerned with increasing the demand for workers in an industry. 
B) restricts the supply of labor through licensing requirements. 
C) organizes a wide range of workers in an industry to gain bargaining power. 
D) is most effective in a purely competitive industry.

Question 20

In the United States,

Accepted Answer

A) whites have higher unionization rates than African Americans. 
B) men have higher unionization rates than women. 
C) managers have higher unionization rates than transportation workers. 
D) workers in mining have higher unionization rates than workers in government. 
A) whites have higher unionization rates than African Americans. 
B) men have higher unionization rates than women. 
C) managers have higher unionization rates than transportation workers. 
D) workers in mining have higher unionization rates than workers in government.

Exam 17: Wage Determination

Suppose a worker feels unhappy with his job and consequently quits.This illustrates

Which of the following involves the creation of human capital?

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage aspects, the two firms offer the same job characteristics.We would expect

In the demand-enhancing union model, a union tries to increase the wage rate through actions such as promoting the industry's product or raising labor productivity.

The earnings of highly educated workers

Minimum wage laws have contributed to higher unemployment levels among teenagers and minorities.

Inclusive unionism is practiced mostly by

In 2015, approximately 5 percent of all work time lost was due to work stoppages.

Independent unions

A monopsonistic employer may sell its product in a competitive market.

Unions may increase productivity by

The supply curve of labor faced by an individual firm in a purely competitive labor market is horizontal.

The idea of compensating differences is used

Labor unions are restrained in their wage demands because

Which of the following factors is not relevant in explaining the persistence of wage differentials?

Pay plans that are designed to elicit a desired level of performance from workers are generally called

If all workers were homogeneous, all jobs were equally attractive to workers, and labor markets were perfectly competitive,

In 2015, food workers had a much higher unionization rate than teachers, according to U.S.Bureau of Labor Statistics data.

An industrial union

In the United States,

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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