Question 1

A monopsonistic employer's marginal resource (labor) cost curve

Accepted Answer

A) is always more elastic than the labor supply curve. 
B) coincides with the labor supply curve. 
C) lies below the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers. 
D) lies above the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers. 
A) is always more elastic than the labor supply curve. 
B) coincides with the labor supply curve. 
C) lies below the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers. 
D) lies above the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers.

Question 2

According to international comparisons, which nation had the highest hourly pay in U.S.dollar terms in 2013?

Accepted Answer

A) United States 
B) Germany 
C) Australia 
D) Sweden 
A) United States 
B) Germany 
C) Australia 
D) Sweden

Question 3

Under conditions of imperfect competition in the labor market, union efforts to increase wages

Accepted Answer

A) will necessarily cause unemployment. 
B) will necessarily reduce unemployment. 
C) will strengthen the monopoly power of management. 
D) may either increase or decrease the level of employment. 
A) will necessarily cause unemployment. 
B) will necessarily reduce unemployment. 
C) will strengthen the monopoly power of management. 
D) may either increase or decrease the level of employment.

Question 4

Critics contend that imposing a minimum wage higher than the equilibrium wage in a competitive industry would

Accepted Answer

A) decrease the number of workers employed in that industry. 
B) decrease the quantity of labor supplied to that industry. 
C) increase the demand for labor in the industry. 
D) increase employment in that industry. 
A) decrease the number of workers employed in that industry. 
B) decrease the quantity of labor supplied to that industry. 
C) increase the demand for labor in the industry. 
D) increase employment in that industry.

Question 5

A characteristic of a purely competitive labor market would be

Accepted Answer

A) "price-maker" behavior by the workers. 
B) "wage-taker" behavior by workers. 
C) many firms selling the same product. 
D) many workers with different skills. 
A) "price-maker" behavior by the workers. 
B) "wage-taker" behavior by workers. 
C) many firms selling the same product. 
D) many workers with different skills.

Question 6

Since 1960, real hourly compensation in the United States has approximately

Accepted Answer

A) remained the same. 
B) risen by 40 percent. 
C) doubled. 
D) tripled. 
A) remained the same. 
B) risen by 40 percent. 
C) doubled. 
D) tripled.

Question 7

In a labor market characterized by bilateral monopoly, the wage rate will

Accepted Answer

A) be logically indeterminate. 
B) be established at the level desired by the union. 
C) be established at the level desired by the employer. 
D) always be established at the competitive level. 
A) be logically indeterminate. 
B) be established at the level desired by the union. 
C) be established at the level desired by the employer. 
D) always be established at the competitive level.

Question 8

The principal-agent problem arises primarily because

Accepted Answer

A) principals and agents share a common interest, leading to free-rider problems. 
B) principals and agents are in an adversarial role, sharing no common interests. 
C) principals pursue some of their own objectives, which may conflict with the objectives of the agents. 
D) agents pursue some of their own objectives, which may conflict with the objectives of the principals. 
A) principals and agents share a common interest, leading to free-rider problems. 
B) principals and agents are in an adversarial role, sharing no common interests. 
C) principals pursue some of their own objectives, which may conflict with the objectives of the agents. 
D) agents pursue some of their own objectives, which may conflict with the objectives of the principals.

Question 9

Private-sector strikes and lockouts typically end because

Accepted Answer

A) the federal government intervenes with a back-to-work order. 
B) the parties eventually tire of bickering. 
C) they are costly in terms of lost profits and lost wage income. 
D) the parties rely heavily on outside arbitration. 
A) the federal government intervenes with a back-to-work order. 
B) the parties eventually tire of bickering. 
C) they are costly in terms of lost profits and lost wage income. 
D) the parties rely heavily on outside arbitration.

Question 10

In 2015, about percent of employed wage and salary workers belonged to unions.

Accepted Answer

A) 25.0 
B) 5.5 
C) 16.4 
D) 11.1 
A) 25.0 
B) 5.5 
C) 16.4 
D) 11.1

Question 11

Productivity measures (such as output per worker-hour) and wage rates adjusted for inflation in the United States are

Accepted Answer

A) inversely related. 
B) unrelated. 
C) directly, but not closely, related. 
D) directly and closely related. 
A) inversely related. 
B) unrelated. 
C) directly, but not closely, related. 
D) directly and closely related.

Question 12

Suppose that under its collective bargaining agreement, the ABC Corporation can hire nonunion workers, but such workers must join the union within 30 days.This agreement embodies

Accepted Answer

A) an open shop. 
B) a closed shop. 
C) a union shop. 
D) an agency shop. 
A) an open shop. 
B) a closed shop. 
C) a union shop. 
D) an agency shop.

Question 13

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

Accepted Answer

A) decrease by 6 percent. 
B) decrease by 4 percent. 
C) decrease by 2 percent. 
D) increase by 2 percent. 
A) decrease by 6 percent. 
B) decrease by 4 percent. 
C) decrease by 2 percent. 
D) increase by 2 percent.

Question 14

Craft unions tend to do all of the following except

Accepted Answer

A) adopting restrictive membership policies. 
B) supporting strict restrictions on immigration. 
C) pushing for mandatory membership for all workers. 
D) requiring apprenticeships or occupational licensing. 
A) adopting restrictive membership policies. 
B) supporting strict restrictions on immigration. 
C) pushing for mandatory membership for all workers. 
D) requiring apprenticeships or occupational licensing.

Question 15

If the nominal wages of carpenters rose by 5 percent in 2013 and the price level increased by 3 percent, then the real wages of carpenters

Accepted Answer

A) decreased by 2 percent. 
B) increased by 2 percent. 
C) increased by 3 percent. 
D) increased by 8 percent. 
A) decreased by 2 percent. 
B) increased by 2 percent. 
C) increased by 3 percent. 
D) increased by 8 percent.

Question 16

Real wages in the United States are

Accepted Answer

A) the highest in the world. 
B) relatively high, but not as high as in some other industrially advanced nations. 
C) much higher than output per worker. 
D) higher than nominal wages. 
A) the highest in the world. 
B) relatively high, but not as high as in some other industrially advanced nations. 
C) much higher than output per worker. 
D) higher than nominal wages.

Question 17

For a monopsonist in the labor market, the marginal resource cost of labor is

Accepted Answer

A) higher than the wage rate or price of labor. 
B) less than the wage rate or price of labor. 
C) equal to the wage rate or price of labor. 
D) inversely related to the wage rate or price of labor.Topic: Monopsony Model 
A) higher than the wage rate or price of labor. 
B) less than the wage rate or price of labor. 
C) equal to the wage rate or price of labor. 
D) inversely related to the wage rate or price of labor.Topic: Monopsony Model

Question 18

According to U.S.Bureau of Labor Statistics data, which of the following industries had the highest unionization rate in 2015?

Accepted Answer

A) finance 
B) construction 
C) transportation 
D) manufacturing 
A) finance 
B) construction 
C) transportation 
D) manufacturing

Question 19

AFL-CIO stands for

Accepted Answer

A) American Federation of Labor-Congress of Industrial Organizations. 
B) American Federation of Labor-Committee for Industrial Opportunity. 
C) Assembly of Factory Laborers-Congress of Industrial Organizations. 
D) Assembly of Factory Laborers-Committee for Industrial Opportunity. 
A) American Federation of Labor-Congress of Industrial Organizations. 
B) American Federation of Labor-Committee for Industrial Opportunity. 
C) Assembly of Factory Laborers-Congress of Industrial Organizations. 
D) Assembly of Factory Laborers-Committee for Industrial Opportunity.

Question 20

The majority of union members in the United States belong to unions that are

Accepted Answer

A) affiliated with the United Workers of America (UW
A) . 
B) affiliated with the AFL-CIO. 
C) independent unions that are not affiliated with the AFL-CIO. 
D) growing rapidly in membership. 
A) affiliated with the United Workers of America (UW
A) . 
B) affiliated with the AFL-CIO. 
C) independent unions that are not affiliated with the AFL-CIO. 
D) growing rapidly in membership.

Exam 17: Wage Determination

A monopsonistic employer's marginal resource (labor) cost curve

According to international comparisons, which nation had the highest hourly pay in U.S.dollar terms in 2013?

Under conditions of imperfect competition in the labor market, union efforts to increase wages

Critics contend that imposing a minimum wage higher than the equilibrium wage in a competitive industry would

A characteristic of a purely competitive labor market would be

Since 1960, real hourly compensation in the United States has approximately

In a labor market characterized by bilateral monopoly, the wage rate will

The principal-agent problem arises primarily because

Private-sector strikes and lockouts typically end because

In 2015, about percent of employed wage and salary workers belonged to unions.

Productivity measures (such as output per worker-hour) and wage rates adjusted for inflation in the United States are

Suppose that under its collective bargaining agreement, the ABC Corporation can hire nonunion workers, but such workers must join the union within 30 days.This agreement embodies

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

Craft unions tend to do all of the following except

If the nominal wages of carpenters rose by 5 percent in 2013 and the price level increased by 3 percent, then the real wages of carpenters

Real wages in the United States are

For a monopsonist in the labor market, the marginal resource cost of labor is

According to U.S.Bureau of Labor Statistics data, which of the following industries had the highest unionization rate in 2015?

AFL-CIO stands for

The majority of union members in the United States belong to unions that are

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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