Question 1

Today union membership in the United States constitutes _______ of workers in the private sector.

Accepted Answer

A)  less than 10 percent 
B)  10 percent to 20 percent 
C)  25 percent to 45 percent 
D)  50 percent to 75 percent 
A)  less than 10 percent 
B)  10 percent to 20 percent 
C)  25 percent to 45 percent 
D)  50 percent to 75 percent

Question 2

A situation in which a _______ faces a _______ is called a _______ monopoly.

Accepted Answer

A)  monopoly seller; monopsony buyer; multilateral 
B)  monopsony seller; monopoly buyer; bilateral 
C)  monopoly seller; monopsony buyer; bilateral 
D)  monopsony buyer; monopsony seller; bilateral 
A)  monopoly seller; monopsony buyer; multilateral 
B)  monopsony seller; monopoly buyer; bilateral 
C)  monopoly seller; monopsony buyer; bilateral 
D)  monopsony buyer; monopsony seller; bilateral

Question 3

When jobs are open to all workers regardless of union affiliation, it is called a(n):

Accepted Answer

A)  closed shop. 
B)  union shop. 
C)  sweat shop. 
D)  none of the above. 
A)  closed shop. 
B)  union shop. 
C)  sweat shop. 
D)  none of the above.

Question 4

Use the following to answer question(s): Monopsony
  
-(Exhibit: Monopsony) Given perfect competition in the factor market, the wage would be:

Accepted Answer

A)  determined where the MRP < MFC. 
B)  W₂. 
C)  W₁. 
D)  MRP₁. 
A)  determined where the MRP < MFC. 
B)  W₂. 
C)  W₁. 
D)  MRP₁.

Question 5

Use the following to answer question(s): Labor Market
  
-(Exhibit: Labor Market) Given competitive market demand curve D and initial union members supply curve S, the effect of a union reducing the supply of workers in the factor market is illustrated by a:

Accepted Answer

A)  new demand curve FTD′. 
B)  new supply curve FTS. 
C)  new supply curve GVS′. 
D)  shift in the supply curve to S′. 
A)  new demand curve FTD′. 
B)  new supply curve FTS. 
C)  new supply curve GVS′. 
D)  shift in the supply curve to S′.

Question 6

Suppose that a factory in a small city is the only employer for thousands of unskilled workers.The model that best fits this situation is:

Accepted Answer

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

Question 7

When buyers have a degree of market power, it is called:

Accepted Answer

A)  monopoly power. 
B)  price discrimination. 
C)  differentiation power. 
D)  monopsony power. 
A)  monopoly power. 
B)  price discrimination. 
C)  differentiation power. 
D)  monopsony power.

Question 8

Monopoly implies a single _______ and monopsony implies a single _______ .

Accepted Answer

A)  buyer; seller 
B)  firm; industry 
C)  industry; firm 
D)  seller; buyer 
A)  buyer; seller 
B)  firm; industry 
C)  industry; firm 
D)  seller; buyer

Question 9

Barriers to entry into a craft union are likely to shift the:

Accepted Answer

A)  labor demand curve to the right. 
B)  labor demand curve to the left. 
C)  labor supply curve to the right. 
D)  labor supply curve to the left. 
A)  labor demand curve to the right. 
B)  labor demand curve to the left. 
C)  labor supply curve to the right. 
D)  labor supply curve to the left.

Question 10

Suppose that all clerical workers in a major city that includes 10,000 different employers decide to form a union.This could result in a situation that, of the following, is best described by the model of:

Accepted Answer

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

Question 11

Use the following to answer question 63-70.
Exhibit: Monopoly and Monopsony
  
-(Exhibit: Monopoly and Monopsony) In Panel (b), if the factor is hired beyond the quantity FQ₁:

Accepted Answer

A)  MRP > MC. 
B)  MR = P. 
C)  MR MFC. 
A)  MRP > MC. 
B)  MR = P. 
C)  MR MFC.

Question 12

In monopoly, output price is greater than the marginal cost of the output; in monopsony, the price of a factor is less than the marginal revenue product of the factor.

Accepted Answer

A) True 
 B)False

Question 13

In a perfectly competitive labor market, the equilibrium quantity of labor is determined by:

Accepted Answer

A)  collective bargaining between unions and management. 
B)  large unions. 
C)  the interaction of large unions and large firms. 
D)  demand and supply. 
A)  collective bargaining between unions and management. 
B)  large unions. 
C)  the interaction of large unions and large firms. 
D)  demand and supply.

Question 14

Use the following to answer question(s): Supply and Marginal Factor Cost
  
-(Exhibit: Supply and Marginal Factor Cost) If the MFC curve and the supply curve derived from this exhibit are plotted on a graph, the _______ curve would lie _______ the ________ curve because _______ must be paid to hire an additional factor.

Accepted Answer

A)  supply; above; MFC; more 
B)  MFC; above; supply; more 
C)  MFC; below; supply; less 
D)  supply; below; MFC; less 
A)  supply; above; MFC; more 
B)  MFC; above; supply; more 
C)  MFC; below; supply; less 
D)  supply; below; MFC; less

Question 15

Suppose that a monopsonist increases the number of workers hired from 10 to 11.If the market wage increases from $20 per worker to $21 per worker, the marginal factor cost for the eleventh worker is:

Accepted Answer

A)  $20. 
B)  $21. 
C)  $31. 
D)  $231. 
A)  $20. 
B)  $21. 
C)  $31. 
D)  $231.

Question 16

A monopsony in the factor market must also be a price setter in the product market.

Accepted Answer

A) True 
 B)False

Question 17

Use the following to answer question(s): Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets
  
-(Exhibit: Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets) If this diagram portrayed a monopsony factor market, the equilibrium employment level would be:

Accepted Answer

A)  between 0N and 0T. 
B)  0H. 
C)  0T. 
D)  0S. 
A)  between 0N and 0T. 
B)  0H. 
C)  0T. 
D)  0S.

Question 18

The factor supply curve for a monopsonist is:

Accepted Answer

A)  positively sloped. 
B)  negatively sloped. 
C)  vertical. 
D)  horizontal. 
A)  positively sloped. 
B)  negatively sloped. 
C)  vertical. 
D)  horizontal.

Question 19

A monopsony firm in the labor market:

Accepted Answer

A)  must pay the same wage to hire more labor. 
B)  must pay a higher wage to hire more labor. 
C)  faces a downward sloping supply curve of labor. 
D)  faces a horizontal supply curve of labor. 
A)  must pay the same wage to hire more labor. 
B)  must pay a higher wage to hire more labor. 
C)  faces a downward sloping supply curve of labor. 
D)  faces a horizontal supply curve of labor.

Question 20

Increasing the demand for labor requires _______ the _______ of labor or _______ the price of the good produced by labor.

Accepted Answer

A)  increasing; MP; decreasing 
B)  increasing; MP; raising 
C)  decreasing; price; raising 
D)  increasing; MFC; decreasing 
A)  increasing; MP; decreasing 
B)  increasing; MP; raising 
C)  decreasing; price; raising 
D)  increasing; MFC; decreasing

Today union membership in the United States constitutes _______ of workers in the private sector.

A situation in which a ___ faces a _ is called a _____ monopoly.

When jobs are open to all workers regardless of union affiliation, it is called a(n):

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given perfect competition in the factor market, the wage would be:

Use the following to answer question(s): Labor Market -(Exhibit: Labor Market) Given competitive market demand curve D and initial union members supply curve S, the effect of a union reducing the supply of workers in the factor market is illustrated by a:

Suppose that a factory in a small city is the only employer for thousands of unskilled workers.The model that best fits this situation is:

When buyers have a degree of market power, it is called:

Monopoly implies a single _ and monopsony implies a single _ .

Barriers to entry into a craft union are likely to shift the:

Suppose that all clerical workers in a major city that includes 10,000 different employers decide to form a union.This could result in a situation that, of the following, is best described by the model of:

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In Panel (b), if the factor is hired beyond the quantity FQ₁:

In monopoly, output price is greater than the marginal cost of the output; in monopsony, the price of a factor is less than the marginal revenue product of the factor.

In a perfectly competitive labor market, the equilibrium quantity of labor is determined by:

Use the following to answer question(s): Supply and Marginal Factor Cost -(Exhibit: Supply and Marginal Factor Cost) If the MFC curve and the supply curve derived from this exhibit are plotted on a graph, the ___ curve would lie _ the curve because _ must be paid to hire an additional factor.

Suppose that a monopsonist increases the number of workers hired from 10 to 11.If the market wage increases from $20 per worker to $21 per worker, the marginal factor cost for the eleventh worker is:

A monopsony in the factor market must also be a price setter in the product market.

Use the following to answer question(s): Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets -(Exhibit: Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets) If this diagram portrayed a monopsony factor market, the equilibrium employment level would be:

The factor supply curve for a monopsonist is:

A monopsony firm in the labor market:

Increasing the demand for labor requires ___ the _ of labor or _____ the price of the good produced by labor.

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

Today union membership in the United States constitutes _______ of workers in the private sector.

A situation in which a _______ faces a _______ is called a _______ monopoly.

When jobs are open to all workers regardless of union affiliation, it is called a(n):

Use the following to answer question(s): Monopsony -(Exhibit: Monopsony) Given perfect competition in the factor market, the wage would be:

Use the following to answer question(s): Labor Market -(Exhibit: Labor Market) Given competitive market demand curve D and initial union members supply curve S, the effect of a union reducing the supply of workers in the factor market is illustrated by a:

Suppose that a factory in a small city is the only employer for thousands of unskilled workers.The model that best fits this situation is:

When buyers have a degree of market power, it is called:

Monopoly implies a single _______ and monopsony implies a single _______ .

Barriers to entry into a craft union are likely to shift the:

Suppose that all clerical workers in a major city that includes 10,000 different employers decide to form a union.This could result in a situation that, of the following, is best described by the model of:

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In Panel (b), if the factor is hired beyond the quantity FQ₁:

In monopoly, output price is greater than the marginal cost of the output; in monopsony, the price of a factor is less than the marginal revenue product of the factor.

In a perfectly competitive labor market, the equilibrium quantity of labor is determined by:

Suppose that a monopsonist increases the number of workers hired from 10 to 11.If the market wage increases from $20 per worker to $21 per worker, the marginal factor cost for the eleventh worker is:

A monopsony in the factor market must also be a price setter in the product market.

The factor supply curve for a monopsonist is:

A monopsony firm in the labor market:

Increasing the demand for labor requires _______ the _______ of labor or _______ the price of the good produced by labor.

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

A situation in which a ___ faces a _ is called a _____ monopoly.

Monopoly implies a single _ and monopsony implies a single _ .

Increasing the demand for labor requires ___ the _ of labor or _____ the price of the good produced by labor.