Question 1

Figure 45.1
-In Figure 45.1, the opportunity cost to workers of working at the equilibrium wage-labor combination is

Accepted Answer

A) OACL* 
B) OW*CL* 
C) OBCL* 
D) ABC 
A) OACL* 
B) OW*CL* 
C) OBCL* 
D) ABC C

Question 2

If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets

Accepted Answer

A) will cause you to believe the wage will be higher than it is. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be. 
A) will cause you to believe the wage will be higher than it is. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be. A

Question 3

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

Accepted Answer

A) will cause you to believe the wage will be higher than it is. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be. 
A) will cause you to believe the wage will be higher than it is. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be. A

Question 4

The use of the supply and demand model to analyze labor markets implicitly assumes that

Accepted Answer

A) sellers of labor have good knowledge about their opportunities. 
B) there is one buyer of labor. 
C) there is one seller of labor. 
D) there is one buyer and one seller of labor. 
A) sellers of labor have good knowledge about their opportunities. 
B) there is one buyer of labor. 
C) there is one seller of labor. 
D) there is one buyer and one seller of labor.

Question 5

Figure 45.3
-In Figure 45.3, the fact that workers become more valuable to employers because of the training required for certification is shown by

Accepted Answer

A) the kinked shape of the new supply curve. 
B) the shift in old supply curve. 
C) the slope of the old demand curve. 
D) the increase in the demand curve. 
A) the kinked shape of the new supply curve. 
B) the shift in old supply curve. 
C) the slope of the old demand curve. 
D) the increase in the demand curve.

Question 6

To the degree that the IBEW conducts costly training and apprentice requirements for prospective electricians, it is

Accepted Answer

A) shifting the supply of electricians to the left. 
B) shifting the supply of electricians to the right. 
C) shifting the demand for electricians to the left. 
D) kinking the supply of electricians to make it vertical at the level of the constraint. 
A) shifting the supply of electricians to the left. 
B) shifting the supply of electricians to the right. 
C) shifting the demand for electricians to the left. 
D) kinking the supply of electricians to make it vertical at the level of the constraint.

Question 7

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

Accepted Answer

A) will cause you to believe that more people will be hired than there will be. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be. 
A) will cause you to believe that more people will be hired than there will be. 
B) is completely accurate. 
C) will cause you to believe the wage will be lower than it is. 
D) will cause you to believe that fewer people will be hired than there will be.

Question 8

The future of private sector labor unions is

Accepted Answer

A) bright, because of the spectacular success of the PATCO strike. 
B) bright, because of the increased availability of undocumented workers from other countries. 
C) bleak, because of the growing economic importance of the service and retailing industries. 
D) bleak, because of the recent increases in the minimum wage earned by non-union workers. 
A) bright, because of the spectacular success of the PATCO strike. 
B) bright, because of the increased availability of undocumented workers from other countries. 
C) bleak, because of the growing economic importance of the service and retailing industries. 
D) bleak, because of the recent increases in the minimum wage earned by non-union workers.

Question 9

To the degree that the Plumbers and Steamfitters union ensures that through its rigorous training requirements for prospective plumbers are qualified to do the work, it is

Accepted Answer

A) shifting the supply of plumbers to the left. 
B) shifting the supply of plumbers to the right. 
C) shifting the demand for plumbers to the right. 
D) kinking the supply of plumbers to make it vertical at the level of the constraint. 
A) shifting the supply of plumbers to the left. 
B) shifting the supply of plumbers to the right. 
C) shifting the demand for plumbers to the right. 
D) kinking the supply of plumbers to make it vertical at the level of the constraint.

Question 10

Figure 45.5
-In Figure 45.5, where one union is bargaining against one employer, the lowest possible negotiated wage paid to workers will be

Accepted Answer

A) W*. 
B) W1. 
C) W2. 
D) an undetermined point between W1 and W2. 
A) W*. 
B) W1. 
C) W2. 
D) an undetermined point between W1 and W2.

Question 11

Figure 45.1
-In Figure 45.1, the money that employers pay their employees at the equilibrium wage-labor combination is

Accepted Answer

A) OACL* 
B) OW*CL* 
C) OBCL* 
D) ABC 
A) OACL* 
B) OW*CL* 
C) OBCL* 
D) ABC

Question 12

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

Accepted Answer

A) the demand for these workers to increase. 
B) the wage paid to these workers to decrease. 
C) the supply for these workers to increase. 
D) the supply curve for these workers to become horizontal at some point. 
A) the demand for these workers to increase. 
B) the wage paid to these workers to decrease. 
C) the supply for these workers to increase. 
D) the supply curve for these workers to become horizontal at some point.

Question 13

Figure 45.2
-In Figure 45.2, at the one-employer "company town solution", the wage paid to workers will be

Accepted Answer

A) W* 
B) W1 
C) W2 
D) an undetermined point between W1 and W2 
A) W* 
B) W1 
C) W2 
D) an undetermined point between W1 and W2

Question 14

The future of private sector labor unions is

Accepted Answer

A) bright, because of the booming Chinese export-driven economy. 
B) bleak, because of the growing economic influence of Walmart upon its suppliers. 
C) bleak, because of the sweep of Congress by Democrats in 2006. 
D) bright, because of the numerous recent innovations in recreational technologies now available for overworked and highly-stressed union members. 
A) bright, because of the booming Chinese export-driven economy. 
B) bleak, because of the growing economic influence of Walmart upon its suppliers. 
C) bleak, because of the sweep of Congress by Democrats in 2006. 
D) bright, because of the numerous recent innovations in recreational technologies now available for overworked and highly-stressed union members.

Question 15

Public employees (more frequently than private employees)tend to have their retirements in

Accepted Answer

A) defined benefit pension programs. 
B) defined contribution programs. 
C) Ponzi schemes. 
D) private savings plans. 
A) defined benefit pension programs. 
B) defined contribution programs. 
C) Ponzi schemes. 
D) private savings plans.

Question 16

Figure 45.5
-In Figure 45.5, where one union is bargaining against one employer, the wage paid to workers will be

Accepted Answer

A) W*. 
B) W1. 
C) W2. 
D) an undetermined point between W1 and W2. 
A) W*. 
B) W1. 
C) W2. 
D) an undetermined point between W1 and W2.

Question 17

The peak of union representation in the workforce was

Accepted Answer

A) 50% in 1935. 
B) 40% in 1945. 
C) 30% in 1975. 
D) 15% in 1985. 
A) 50% in 1935. 
B) 40% in 1945. 
C) 30% in 1975. 
D) 15% in 1985.

Question 18

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

Accepted Answer

A) the demand for these workers to decrease. 
B) the wage paid to these workers to increase. 
C) the supply for these workers to increase. 
D) the supply curve for these workers to become horizontal at some point. 
A) the demand for these workers to decrease. 
B) the wage paid to these workers to increase. 
C) the supply for these workers to increase. 
D) the supply curve for these workers to become horizontal at some point.

Question 19

Figure 45.2
-In Figure 45.2, at the perfectly competitive equilibrium, the wage will be

Accepted Answer

A) W* 
B) W1 
C) W2 
D) between W1 and W2 
A) W* 
B) W1 
C) W2 
D) between W1 and W2

Question 20

Economists label the net loss to society due to an uncompetitive labor market structure as a

Accepted Answer

A) consumer surplus. 
B) producer surplus. 
C) consumer deficit. 
D) deadweight loss. 
A) consumer surplus. 
B) producer surplus. 
C) consumer deficit. 
D) deadweight loss.

Exam 45: Unions

Figure 45.1 -In Figure 45.1, the opportunity cost to workers of working at the equilibrium wage-labor combination is

If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

The use of the supply and demand model to analyze labor markets implicitly assumes that

Figure 45.3 -In Figure 45.3, the fact that workers become more valuable to employers because of the training required for certification is shown by

To the degree that the IBEW conducts costly training and apprentice requirements for prospective electricians, it is

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

The future of private sector labor unions is

To the degree that the Plumbers and Steamfitters union ensures that through its rigorous training requirements for prospective plumbers are qualified to do the work, it is

Figure 45.5 -In Figure 45.5, where one union is bargaining against one employer, the lowest possible negotiated wage paid to workers will be

Figure 45.1 -In Figure 45.1, the money that employers pay their employees at the equilibrium wage-labor combination is

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

Figure 45.2 -In Figure 45.2, at the one-employer "company town solution", the wage paid to workers will be

The future of private sector labor unions is

Public employees (more frequently than private employees)tend to have their retirements in

Figure 45.5 -In Figure 45.5, where one union is bargaining against one employer, the wage paid to workers will be

The peak of union representation in the workforce was

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

Figure 45.2 -In Figure 45.2, at the perfectly competitive equilibrium, the wage will be

Economists label the net loss to society due to an uncompetitive labor market structure as a

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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