Question 1

Private-sector strikes and lockouts typically end because:

Accepted Answer

A)  the federal government intervenes with a "back-to-work" order. 
B)  the parties eventually tire of bickering. 
C)  they are costly in terms of lost profits and lost wage income. 
D)  the parties rely heavily on outside arbitration. 
A)  the federal government intervenes with a "back-to-work" order. 
B)  the parties eventually tire of bickering. 
C)  they are costly in terms of lost profits and lost wage income. 
D)  the parties rely heavily on outside arbitration.

Question 2

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left;exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

Accepted Answer

A) True 
 B)False

Question 3

If the minimum wage is set too high,in some labor markets we can expect to see:

Accepted Answer

A)  a shortage of labor. 
B)  an increase in on-the-job training. 
C)  a surplus of labor. 
D)  a decline in wage costs. 
A)  a shortage of labor. 
B)  an increase in on-the-job training. 
C)  a surplus of labor. 
D)  a decline in wage costs.

Question 4

Since 1980,labor union membership in the United States has been:

Accepted Answer

A)  increasing absolutely and as a percentage of the labor force. 
B)  increasing absolutely but declining as a percentage of the labor force. 
C)  decreasing absolutely and as a percentage of the labor force. 
D)  decreasing absolutely but increasing as a percentage of the labor force. 
A)  increasing absolutely and as a percentage of the labor force. 
B)  increasing absolutely but declining as a percentage of the labor force. 
C)  decreasing absolutely and as a percentage of the labor force. 
D)  decreasing absolutely but increasing as a percentage of the labor force.

Question 5

Suppose a worker feels unhappy with his job and consequently quits.This illustrates:

Accepted Answer

A)  the voice mechanism. 
B)  featherbedding. 
C)  the exit mechanism. 
D)  blacklisting. 
A)  the voice mechanism. 
B)  featherbedding. 
C)  the exit mechanism. 
D)  blacklisting.

Question 6

Suppose in some economy there are 100 million workers;10 million of those workers work in retail trade,and 1 million of the retail workers belong to unions.Total union membership in this economy is 40 million.The rate of unionization in retail trade is:

Accepted Answer

A)  1 percent. 
B)  10 percent. 
C)  40 percent. 
D)  100 percent. 
A)  1 percent. 
B)  10 percent. 
C)  40 percent. 
D)  100 percent.

Question 7

Efficiency wages are established at below-equilibrium levels.

Accepted Answer

A) True 
 B)False

Question 8

The Overnight Construction Company has just signed a collective bargaining contract in which it agrees that all workers it hires must be union members in good standing at the time they are hired.This provision reflects:

Accepted Answer

A)  preferential hiring. 
B)  a maintenance-of-membership shop. 
C)  a union shop. 
D)  a closed shop. 
A)  preferential hiring. 
B)  a maintenance-of-membership shop. 
C)  a union shop. 
D)  a closed shop.

Question 9

Which one of the following research findings is most consistent with the hypothesis that unions increase productivity?

Accepted Answer

A)  Other things equal,firm profits are lower where unions are present. 
B)  Union workers receive,on average,higher fringe benefits relative to wages than nonunion workers. 
C)  The average amount of work time lost annually to strikes is surprisingly small. 
D)  Labor turnover is less in unionized firms than in nonunionized firms. 
A)  Other things equal,firm profits are lower where unions are present. 
B)  Union workers receive,on average,higher fringe benefits relative to wages than nonunion workers. 
C)  The average amount of work time lost annually to strikes is surprisingly small. 
D)  Labor turnover is less in unionized firms than in nonunionized firms.

Question 10

Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
15\
28\
39\
48\
55\
60
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 2.20 \
2.00 \
1.80 \
1.60 \
1.40 \
1.20 \
1.00 
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6 
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
-- \
\$1.00 \
2.00\
3.00 \
4.00 \
5.00 \
6.00
\end{array}
\end{array}$
  Refer to the given data.How many workers will this profit-maximizing firm choose to employ?

Accepted Answer

A)  6. 
B)  5. 
C)  4. 
D)  3. 
A)  6. 
B)  5. 
C)  4. 
D)  3.

Question 11

In 2011,about ____ percent of employed wage and salary workers belonged to unions.

Accepted Answer

A)  8.4 
B)  5.5 
C)  14.8 
D)  11.8 
A)  8.4 
B)  5.5 
C)  14.8 
D)  11.8

Question 12

Which of the following is not an example of a market imperfection that might explain persistent wage differentials within an occupation?

Accepted Answer

A)  Geographic immobility of workers. 
B)  Discrimination. 
C)  Noncompeting groups. 
D)  Poor information about job opportunities and pay. 
A)  Geographic immobility of workers. 
B)  Discrimination. 
C)  Noncompeting groups. 
D)  Poor information about job opportunities and pay.

Question 13

State right-to-work laws:

Accepted Answer

A)  permit employers to hire nonunion workers only if union labor is unavailable. 
B)  prohibit employers from discriminating against minority groups in hiring workers. 
C)  prohibit unions from discriminating against minority groups in recruiting members. 
D)  make compulsory union membership (for example,a union shop)illegal. 
A)  permit employers to hire nonunion workers only if union labor is unavailable. 
B)  prohibit employers from discriminating against minority groups in hiring workers. 
C)  prohibit unions from discriminating against minority groups in recruiting members. 
D)  make compulsory union membership (for example,a union shop)illegal.

Question 14

Unions may increase productivity by:

Accepted Answer

A)  providing an exit mechanism for workers. 
B)  increasing worker turnover so that younger workers are more likely to be employed. 
C)  reducing the amount of capital used per worker. 
D)  providing a voice mechanism for workers. 
A)  providing an exit mechanism for workers. 
B)  increasing worker turnover so that younger workers are more likely to be employed. 
C)  reducing the amount of capital used per worker. 
D)  providing a voice mechanism for workers.

Question 15

A profit-maximizing firm will:

Accepted Answer

A)  expand employment if marginal revenue product equals marginal resource cost. 
B)  reduce employment if marginal revenue product equals marginal resource cost. 
C)  reduce employment if marginal revenue product is less than marginal resource cost. 
D)  expand employment if marginal revenue product is less than marginal resource cost. 
A)  expand employment if marginal revenue product equals marginal resource cost. 
B)  reduce employment if marginal revenue product equals marginal resource cost. 
C)  reduce employment if marginal revenue product is less than marginal resource cost. 
D)  expand employment if marginal revenue product is less than marginal resource cost.

Question 16

Use the resource demand data shown on the left and the resource supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
15\
28\
39\
48\
55\
60
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 2.20 \
2.00 \
1.80 \
1.60 \
1.40 \
1.20 \
1.00 
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6 
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
-- \
\$1.00 \
2.00\
3.00 \
4.00 \
5.00 \
6.00
\end{array}
\end{array}$
  Refer to the given data.What will be the profit-maximizing wage rate?

Accepted Answer

A)  $6. 
B)  $5. 
C)  $4. 
D)  $3. 
A)  $6. 
B)  $5. 
C)  $4. 
D)  $3.

Question 17

Unions prefer:

Accepted Answer

A)  open shops to agency shops. 
B)  agency shops to closed shops. 
C)  agency shops to union shops. 
D)  union shops to agency shops. 
A)  open shops to agency shops. 
B)  agency shops to closed shops. 
C)  agency shops to union shops. 
D)  union shops to agency shops.

Question 18

Union workers have higher rates of job turnover than do nonunion workers.

Accepted Answer

A) True 
 B)False

Question 19

Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer.This is an example of:

Accepted Answer

A)  equalizing differences. 
B)  a nonmonetary job disadvantage. 
C)  shirking. 
D)  the free-rider problem. 
A)  equalizing differences. 
B)  a nonmonetary job disadvantage. 
C)  shirking. 
D)  the free-rider problem.

Question 20

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

Accepted Answer

A)  results in a less-experienced workforce. 
B)  increases the incentive for firms to provide training to their workers. 
C)  allows firms to employ a greater number of younger,more energetic workers. 
D)  increases the incentive for firms to substitute labor for capital in the production process. 
A)  results in a less-experienced workforce. 
B)  increases the incentive for firms to provide training to their workers. 
C)  allows firms to employ a greater number of younger,more energetic workers. 
D)  increases the incentive for firms to substitute labor for capital in the production process.

Private-sector strikes and lockouts typically end because:

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left;exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

If the minimum wage is set too high,in some labor markets we can expect to see:

Since 1980,labor union membership in the United States has been:

Suppose a worker feels unhappy with his job and consequently quits.This illustrates:

Suppose in some economy there are 100 million workers;10 million of those workers work in retail trade,and 1 million of the retail workers belong to unions.Total union membership in this economy is 40 million.The rate of unionization in retail trade is:

Efficiency wages are established at below-equilibrium levels.

The Overnight Construction Company has just signed a collective bargaining contract in which it agrees that all workers it hires must be union members in good standing at the time they are hired.This provision reflects:

Which one of the following research findings is most consistent with the hypothesis that unions increase productivity?

In 2011,about ____ percent of employed wage and salary workers belonged to unions.

Which of the following is not an example of a market imperfection that might explain persistent wage differentials within an occupation?

State right-to-work laws:

Unions may increase productivity by:

A profit-maximizing firm will:

Unions prefer:

Union workers have higher rates of job turnover than do nonunion workers.

Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer.This is an example of:

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

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 Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

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

Filters

Exam 16: Wage Determination

Private-sector strikes and lockouts typically end because:

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left;exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

If the minimum wage is set too high,in some labor markets we can expect to see:

Since 1980,labor union membership in the United States has been:

Suppose a worker feels unhappy with his job and consequently quits.This illustrates:

Suppose in some economy there are 100 million workers;10 million of those workers work in retail trade,and 1 million of the retail workers belong to unions.Total union membership in this economy is 40 million.The rate of unionization in retail trade is:

Efficiency wages are established at below-equilibrium levels.

The Overnight Construction Company has just signed a collective bargaining contract in which it agrees that all workers it hires must be union members in good standing at the time they are hired.This provision reflects:

Which one of the following research findings is most consistent with the hypothesis that unions increase productivity?

In 2011,about ____ percent of employed wage and salary workers belonged to unions.

Which of the following is not an example of a market imperfection that might explain persistent wage differentials within an occupation?

State right-to-work laws:

Unions may increase productivity by:

A profit-maximizing firm will:

Unions prefer:

Union workers have higher rates of job turnover than do nonunion workers.

Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer.This is an example of:

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

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 Cost of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition and Oligopoly

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

Filters