Exam 19: Labor and Entrepreneurship: the Human Inputs

Wages in American industry are very high because of wage laws.

Studies have shown that in the 1980s the wage gap between college-educated workers and those with high school education or less

A change in wages creates a substitution and income effect on the quantity of labor supplied.

In the collective bargaining process,

During the twentieth century, the real income of the average American grew by a factor of more than seven.

Give some explanations for the decline in union membership in the United States.

Which economist created the theory of creative destruction?

Less than 13 percent of U.S. workers belong to unions.

An economist would describe college fees as

The United States suffers more from strikes than Japan but fewer strikes than Canada.

The price of leisure is the

Which of the following would not be a prediction from economic labor theory regarding the wage of a field hand?

Labor union membership, as a percent of workers, has steadily declined since the 1930s.

Wages are comparatively low in markets where demand for labor is high and supply is low.

Creative destruction by innovation means

The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers.

Anything that influences a good's price or the marginal physical product of labor will influence wages.

Union leaders who focus on increasing the size of their union will be aggressive in demanding higher wages.

The substitution effect makes workers want to work less when the wage increases.

It has been shown that when offered higher wages, women will work more hours. This is likely because