Exam 7: Labor Markets

Domestic labor unions often attempt to block the immigration of low-skilled foreign workers.

If the wages of a U.S. worker are double the wages of a Korean worker, the U.S. worker will be less costly to employ if its marginal productivity is ______ that of the Korean worker.

Even if U.S. wages are higher than Chinese wages, if U.S. labor is more productive than Chinese labor, U.S. labor can still be competitive.

Critics maintain that increases in the federal minimum wage tends to harm many workers, including teenagers, who seek jobs at the higher wage, but cannot find them.

Industrial unions, such as the United Auto Workers, attempt to increase the wages of their members primarily by restricting the supply of labor.

The marginal product of labor represents the total product of labor divided by the amount of labor employed.

The point of intersection of the labor demand and labor supply curves determines the equilibrium wage and level of employment.

A decrease in the supply curve of auto workers could be the result of

Immigrant workers tend to flow to countries where there is an under-abundance of labor.

Concerning the market for radio assemblers, assume that the wage rate is $12 per hour in the U.S.and $3 per hour in Mexico. Also suppose that the marginal product of a Mexican worker is 3 radios per hour. A U.S. worker will be more costly to employ than the Mexican worker if the marginal product of the U.S. worker is

In most labor negotiations, management of firms and union representatives start off far apart, but do not come closer, so that a strike takes place.

An upward movement along the demand curve for labor is caused by a(n)

In a competitive market, a firm will maximize profits by hiring workers up to the point where the value of the marginal product of labor equals the wage rate.

The experience of the U.S. auto industry illustrates how non-union workers can threaten the employment levels and wage structures of union workers.

By federal law, all workers in the U.S. are entitled to receive at least $5.15 per hour for work they perform.

Figure 8.1 The Market for Horse Groomers -Refer to Figure 8.1. The change in labor demand from D₀ to D₁ indicates that the value of the marginal product of labor curve has

Unions tend to support minimum wage laws because they increase the cost of hiring unskilled workers.

A downward movement along the demand curve for labor is caused by a(n)

The demand curve for labor is

The Wisconsin Teachers Union would be most successful in increasing wages and employment for its members if it could