Question 1

The demand for labor in a competitive labor market is found by _______ the ________ curves of individual firms.

Accepted Answer

A)  averaging; MFC 
B)  averaging; MRP 
C)  summing; MFC 
D)  summing; MRP 
A)  averaging; MFC 
B)  averaging; MRP 
C)  summing; MFC 
D)  summing; MRP

Question 2

An essential characteristic of imperfect competition in factor markets is that:

Accepted Answer

A)  individual firms face a downward-sloping demand curve for their output. 
B)  the MFC curve lies above the factor supply curve. 
C)  P of output is less than MR. 
D)  MFC is downward-sloping. 
A)  individual firms face a downward-sloping demand curve for their output. 
B)  the MFC curve lies above the factor supply curve. 
C)  P of output is less than MR. 
D)  MFC is downward-sloping.

Question 3

A firm buying factors of production in a perfectly competitive factor market will hire labor where:

Accepted Answer

A)  the MR and MC curves cross. 
B)  MRP = MC. 
C)  MRP = MFC. 
D)  MRP = MP of labor times the price of output. 
A)  the MR and MC curves cross. 
B)  MRP = MC. 
C)  MRP = MFC. 
D)  MRP = MP of labor times the price of output.

Question 4

Use the following to answer question(s): Labor Market
  
-(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a wage of _______ and a labor quantity of _______ .

Accepted Answer

A)  F; P 
B)  G; L 
C)  I; N 
D)  J; K 
A)  F; P 
B)  G; L 
C)  I; N 
D)  J; K

Question 5

The Case in Point on the salaries of professional baseball players suggested that the value of a player to the team owners could be measured by his:

Accepted Answer

A)  marginal factor cost. 
B)  marginal revenue product. 
C)  number of times at bat. 
D)  previous performance in the minor leagues. 
A)  marginal factor cost. 
B)  marginal revenue product. 
C)  number of times at bat. 
D)  previous performance in the minor leagues.

Question 6

A wage negotiated by an industrial union that is higher than the wage determined by demand and supply causes the quantity of labor employed to:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  increase, but only over the life of the contract. 
D)  decrease at first, then increase later. 
A)  increase. 
B)  decrease. 
C)  increase, but only over the life of the contract. 
D)  decrease at first, then increase later.

Question 7

Monopsony power exists if a buyer faces a(n):

Accepted Answer

A)  upward-sloping demand curve. 
B)  downward-sloping supply curve. 
C)  upward-sloping supply curve. 
D)  horizontal demand or supply curve. 
A)  upward-sloping demand curve. 
B)  downward-sloping supply curve. 
C)  upward-sloping supply curve. 
D)  horizontal demand or supply curve.

Question 8

Use the following to answer question(s): Monopsony
  
-(Exhibit: Monopsony) Given monopsony in the factor market, how much labor will be hired?

Accepted Answer

A)  L₀ 
B)  L₁ 
C)  L₂ 
D)  L₃ 
A)  L₀ 
B)  L₁ 
C)  L₂ 
D)  L₃

Question 9

Use the following to answer question(s): Monopsony
  
-(Exhibit: Monopsony) Given ________ in the labor market, labor receives a wage that is _______ the MRP; in _______ , labor receives a wage that is ________ MRP.

Accepted Answer

A)  monopoly; less than; perfectly competitive factor markets; greater than 
B)  monopsony; less than; perfectly competitive factor markets; equal to 
C)  perfect competition; equal to; monopsonistic factor markets; greater than 
D)  perfect competition; less than; monopsonistic factor markets; equal to 
A)  monopoly; less than; perfectly competitive factor markets; greater than 
B)  monopsony; less than; perfectly competitive factor markets; equal to 
C)  perfect competition; equal to; monopsonistic factor markets; greater than 
D)  perfect competition; less than; monopsonistic factor markets; equal to

Question 10

A firm's demand curve for labor is the downward-sloping part of its MRP curve of labor.

Accepted Answer

A) True 
 B)False

Question 11

In a competitive labor market, a minimum wage will lead to unemployment.

Accepted Answer

A) True 
 B)False

Question 12

Under perfect competition in the product market, the price of a product will be ________ MC, and under perfect competition in the factor market, the price of a factor will be _______ MRP.

Accepted Answer

A)  greater than; less than 
B)  less than; greater than 
C)  equal to; equal to 
D)  greater than; greater than 
A)  greater than; less than 
B)  less than; greater than 
C)  equal to; equal to 
D)  greater than; greater than

Question 13

A firm buying factors of production in a perfectly competitive factor market has a horizontal demand for labor.

Accepted Answer

A) True 
 B)False

Question 14

A union composed of workers in the same skilled occupation is best termed a(n):

Accepted Answer

A)  craft union. 
B)  national union. 
C)  occupational union. 
D)  industrial union. 
A)  craft union. 
B)  national union. 
C)  occupational union. 
D)  industrial union.

Question 15

Unions generally favor immigration.

Accepted Answer

A) True 
 B)False

Question 16

The wage paid by a firm buying labor in a monopsonistic market:

Accepted Answer

A)  is greater than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market. 
B)  is less than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market. 
C)  decreases with the quantity of labor hired. 
D)  does not change with the quantity of labor hired. 
A)  is greater than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market. 
B)  is less than the wage in the situation where the monopsony firm was broken up into a large number of firms buying inputs in a perfectly competitive factor market. 
C)  decreases with the quantity of labor hired. 
D)  does not change with the quantity of labor hired.

Question 17

In a factor market characterized by monopsony, the supply of the factor to an individual firm is:

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  upward sloping. 
D)  downward sloping. 
A)  vertical. 
B)  horizontal. 
C)  upward sloping. 
D)  downward sloping.

Question 18

Studies indicate that the labor market for baseball players before the late 1970s was best represented by:

Accepted Answer

A)  duopoly. 
B)  monopoly. 
C)  monopsony. 
D)  perfect competition. 
A)  duopoly. 
B)  monopoly. 
C)  monopsony. 
D)  perfect competition.

Question 19

In a labor market characterized by bilateral monopoly, such as a union and a single firm employing union members, the wage rate is:

Accepted Answer

A)  theoretically indeterminate and depends on the relative bargaining strengths of the buyer and seller. 
B)  usually established at the wage sought by the union. 
C)  usually established at the competitive level. 
D)  usually established at the level desired by the employer. 
A)  theoretically indeterminate and depends on the relative bargaining strengths of the buyer and seller. 
B)  usually established at the wage sought by the union. 
C)  usually established at the competitive level. 
D)  usually established at the level desired by the employer.

Question 20

In 1955, approximately _______ percent of the U.S.labor force belong to a union.Today less than _______ percent of workers in the private sector belong to unions.

Accepted Answer

A)  10; 50 
B)  35; 10 
C)  50; 5 
D)  60; 2 
A)  10; 50 
B)  35; 10 
C)  50; 5 
D)  60; 2

The demand for labor in a competitive labor market is found by _ the __ curves of individual firms.

An essential characteristic of imperfect competition in factor markets is that:

A firm buying factors of production in a perfectly competitive factor market will hire labor where:

Use the following to answer question(s): Labor Market -(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a wage of _ and a labor quantity of _ .

The Case in Point on the salaries of professional baseball players suggested that the value of a player to the team owners could be measured by his:

A wage negotiated by an industrial union that is higher than the wage determined by demand and supply causes the quantity of labor employed to:

Monopsony power exists if a buyer faces a(n):

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given monopsony in the factor market, how much labor will be hired?

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given ____ in the labor market, labor receives a wage that is _ the MRP; in _ , labor receives a wage that is ____ MRP.

A firm's demand curve for labor is the downward-sloping part of its MRP curve of labor.

In a competitive labor market, a minimum wage will lead to unemployment.

Under perfect competition in the product market, the price of a product will be __ MC, and under perfect competition in the factor market, the price of a factor will be _ MRP.

A firm buying factors of production in a perfectly competitive factor market has a horizontal demand for labor.

A union composed of workers in the same skilled occupation is best termed a(n):

Unions generally favor immigration.

The wage paid by a firm buying labor in a monopsonistic market:

In a factor market characterized by monopsony, the supply of the factor to an individual firm is:

Studies indicate that the labor market for baseball players before the late 1970s was best represented by:

In a labor market characterized by bilateral monopoly, such as a union and a single firm employing union members, the wage rate is:

In 1955, approximately _ percent of the U.S.labor force belong to a union.Today less than _ percent of workers in the private sector belong to unions.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 14: Imperfectly Competitive Markets for Factors of Production

The demand for labor in a competitive labor market is found by _______ the ________ curves of individual firms.

An essential characteristic of imperfect competition in factor markets is that:

A firm buying factors of production in a perfectly competitive factor market will hire labor where:

Use the following to answer question(s): Labor Market -(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a wage of _______ and a labor quantity of _______ .

The Case in Point on the salaries of professional baseball players suggested that the value of a player to the team owners could be measured by his:

A wage negotiated by an industrial union that is higher than the wage determined by demand and supply causes the quantity of labor employed to:

Monopsony power exists if a buyer faces a(n):

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given monopsony in the factor market, how much labor will be hired?

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given ________ in the labor market, labor receives a wage that is _______ the MRP; in _______ , labor receives a wage that is ________ MRP.

A firm's demand curve for labor is the downward-sloping part of its MRP curve of labor.

In a competitive labor market, a minimum wage will lead to unemployment.

Under perfect competition in the product market, the price of a product will be ________ MC, and under perfect competition in the factor market, the price of a factor will be _______ MRP.

A firm buying factors of production in a perfectly competitive factor market has a horizontal demand for labor.

A union composed of workers in the same skilled occupation is best termed a(n):

Unions generally favor immigration.

The wage paid by a firm buying labor in a monopsonistic market:

In a factor market characterized by monopsony, the supply of the factor to an individual firm is:

Studies indicate that the labor market for baseball players before the late 1970s was best represented by:

In a labor market characterized by bilateral monopoly, such as a union and a single firm employing union members, the wage rate is:

In 1955, approximately _______ percent of the U.S.labor force belong to a union.Today less than _______ percent of workers in the private sector belong to unions.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

The demand for labor in a competitive labor market is found by _ the __ curves of individual firms.

Use the following to answer question(s): Labor Market -(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a wage of _ and a labor quantity of _ .

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given ____ in the labor market, labor receives a wage that is _ the MRP; in _ , labor receives a wage that is ____ MRP.

Under perfect competition in the product market, the price of a product will be __ MC, and under perfect competition in the factor market, the price of a factor will be _ MRP.

In 1955, approximately _ percent of the U.S.labor force belong to a union.Today less than _ percent of workers in the private sector belong to unions.