Question 1

The best example of an industrial union is the

Accepted Answer

A)  United Association of Plumbers and Pipefitters. 
B)  International Brotherhood of Electrical Workers. 
C)  American Medical Association. 
D)  United Auto Workers. 
A)  United Association of Plumbers and Pipefitters. 
B)  International Brotherhood of Electrical Workers. 
C)  American Medical Association. 
D)  United Auto Workers.

Question 2

Exclusive unionism has the economic effect of

Accepted Answer

A)  strengthening the bargaining position of an industrial union. 
B)  weakening the bargaining position of a craft union. 
C)  decreasing the supply of labor. 
D)  increasing the demand for labor. 
A)  strengthening the bargaining position of an industrial union. 
B)  weakening the bargaining position of a craft union. 
C)  decreasing the supply of labor. 
D)  increasing the demand for labor.

Question 3

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 4

Which of the following has not been a major factor contributing to the high productivity of labor in the United States?

Accepted Answer

A)  high wage rates 
B)  technological advancement 
C)  education and training of workers 
D)  high levels of capital investment 
A)  high wage rates 
B)  technological advancement 
C)  education and training of workers 
D)  high levels of capital investment

Question 5

Data on education and earnings reveal

Accepted Answer

A)  negative age-earnings profiles for male workers. 
B)  no relationship between the two. 
C)  a positive relationship between the two. 
D)  a negative relationship between the two. 
A)  negative age-earnings profiles for male workers. 
B)  no relationship between the two. 
C)  a positive relationship between the two. 
D)  a negative relationship between the two.

Question 6

A bilateral monopoly case is a situation where a firm is a monopolist in its product market and is also a monopsonist in the market where it acquires its major resource.

Accepted Answer

A) True 
 B)False

Question 7

Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of

Accepted Answer

A)  total output. 
B)  stock of capital. 
C)  output per worker. 
D)  international trade. 
A)  total output. 
B)  stock of capital. 
C)  output per worker. 
D)  international trade.

Question 8

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 9

Which of the following bargaining tactics is illegal?

Accepted Answer

A)  a lockout 
B)  a strike 
C)  refusal to meet with union representatives 
D)  hiring strikebreakers 
A)  a lockout 
B)  a strike 
C)  refusal to meet with union representatives 
D)  hiring strikebreakers

Question 10

Industrial unions are more likely to increase wage rates by restricting the supply of labor than are craft unions.

Accepted Answer

A) True 
 B)False

Question 11

If the supply of labor in a purely competitive labor market increases, then the product

Accepted Answer

A)  supply curve for a single employer will shift to the right. 
B)  supply curve for a single employer will shift to the left. 
C)  demand curve for a single employer will shift to the right. 
D)  demand curve for a single employer will shift to the left. 
A)  supply curve for a single employer will shift to the right. 
B)  supply curve for a single employer will shift to the left. 
C)  demand curve for a single employer will shift to the right. 
D)  demand curve for a single employer will shift to the left.

Question 12

Compensating differences in wages pay workers for

Accepted Answer

A)  differences in worker training and skills. 
B)  differences in the nonmonetary characteristics of jobs. 
C)  geographic immobility. 
D)  discrimination in hiring and firing. 
A)  differences in worker training and skills. 
B)  differences in the nonmonetary characteristics of jobs. 
C)  geographic immobility. 
D)  discrimination in hiring and firing.

Question 13

Which action taken by a worker would not be an investment in human capital?

Accepted Answer

A)  enrolling in college 
B)  enrolling in trade school 
C)  purchasing exercise equipment 
D)  purchasing stock in a pharmaceutical company 
A)  enrolling in college 
B)  enrolling in trade school 
C)  purchasing exercise equipment 
D)  purchasing stock in a pharmaceutical company

Question 14

If a firm is hiring variable resources D and F in imperfectly competitive input markets, it will maximize profits by employing D and F in such quantifies that

Accepted Answer

A) $\mathrm{MRP} D / \operatorname{MRC} D=\mathrm{MRP} F / \mathrm{MRC} F=1$ 
B)  MRPD / MRCD = MRPF / MRCF. 
C)  MRPD / PD = MRPF / PF = 1. 
D)  MRPD / PD = MRPF / PF. 
A) $\mathrm{MRP} D / \operatorname{MRC} D=\mathrm{MRP} F / \mathrm{MRC} F=1$ 
B)  MRPD / MRCD = MRPF / MRCF. 
C)  MRPD / PD = MRPF / PF = 1. 
D)  MRPD / PD = MRPF / PF.

Question 15

Craft unions have typically been most effective in raising wage rates by

Accepted Answer

A)  legislating a minimum wage rate above the competitive equilibrium level. 
B)  increasing the demand for labor of union members. 
C)  decreasing the supply of labor through licensing and training requirements. 
D)  organizing all of the employees in a factory or industry and demanding wage hikes. 
A)  legislating a minimum wage rate above the competitive equilibrium level. 
B)  increasing the demand for labor of union members. 
C)  decreasing the supply of labor through licensing and training requirements. 
D)  organizing all of the employees in a factory or industry and demanding wage hikes.

Question 16

Craft unions

Accepted Answer

A)  attempt to organize workers at all skill levels in a firm or industry. 
B)  have been declared illegal by federal legislation. 
C)  only organize workers who have a particular set of skills. 
D)  attempt to increase the supply of their particular type of labor. 
A)  attempt to organize workers at all skill levels in a firm or industry. 
B)  have been declared illegal by federal legislation. 
C)  only organize workers who have a particular set of skills. 
D)  attempt to increase the supply of their particular type of labor.

Question 17

In a labor dispute in which the existing contract has expired, a

Accepted Answer

A)  firm can legally lock up unruly workers. 
B)  firm can legally lock out union workers. 
C)  union can legally restrict customer access to the firm. 
D)  union can legally restrict physical access by management to the firm. 
A)  firm can legally lock up unruly workers. 
B)  firm can legally lock out union workers. 
C)  union can legally restrict customer access to the firm. 
D)  union can legally restrict physical access by management to the firm.

Question 18

The electricians' union is a good example of

Accepted Answer

A)  exclusive unionism. 
B)  an industrial union. 
C)  how unions can simultaneously increase wage rates and employment by increasing the demand for labor. 
D)  inclusive unionism. 
A)  exclusive unionism. 
B)  an industrial union. 
C)  how unions can simultaneously increase wage rates and employment by increasing the demand for labor. 
D)  inclusive unionism.

Question 19

If a firm must pay a daily wage of $35 to hire 11 workers and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the 12th worker is $40.

Accepted Answer

A) True 
 B)False

Question 20

W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by

Accepted Answer

A)  1. 
B)  2. 
C)  3. 
D)  4. 
A)  1. 
B)  2. 
C)  3. 
D)  4.

Exam 17: Wage Determination

The best example of an industrial union is the

Exclusive unionism has the economic effect of

A characteristic of a purely competitive labor market would be

Which of the following has not been a major factor contributing to the high productivity of labor in the United States?

Data on education and earnings reveal

A bilateral monopoly case is a situation where a firm is a monopolist in its product market and is also a monopsonist in the market where it acquires its major resource.

Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of

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

Which of the following bargaining tactics is illegal?

Industrial unions are more likely to increase wage rates by restricting the supply of labor than are craft unions.

If the supply of labor in a purely competitive labor market increases, then the product

Compensating differences in wages pay workers for

Which action taken by a worker would not be an investment in human capital?

If a firm is hiring variable resources D and F in imperfectly competitive input markets, it will maximize profits by employing D and F in such quantifies that

Craft unions have typically been most effective in raising wage rates by

Craft unions

In a labor dispute in which the existing contract has expired, a

The electricians' union is a good example of

If a firm must pay a daily wage of $35 to hire 11 workers and a daily wage of $40 to hire 12 workers, its marginal resource cost of hiring the 12th worker is $40.

W > MRP; W > MRC Refer to the list. The outcome in a monopsony labor market is shown by

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

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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