Question 1

Suppose Steve Stone takes a job with Zemo Manufacturing,whose labor contract with its unions has an agency shop clause (30 days).Steve:

Accepted Answer

A)  must join the union within 30 days. 
B)  can decide against joining the union and place the union dues in a retirement account. 
C)  can decide against joining the union but then will not receive any union-negotiated wage increases. 
D)  can decide against joining the union but nevertheless will have to pay union dues or donate an equivalent amount to an approved charity. 
A)  must join the union within 30 days. 
B)  can decide against joining the union and place the union dues in a retirement account. 
C)  can decide against joining the union but then will not receive any union-negotiated wage increases. 
D)  can decide against joining the union but nevertheless will have to pay union dues or donate an equivalent amount to an approved charity.

Question 2

In the United States:

Accepted Answer

A)  whites have higher unionization rates than African Americans. 
B)  men have higher unionization rates than women. 
C)  managers have higher unionization rates than transportation workers. 
D)  workers in mining have higher unionization rates than workers in government. 
A)  whites have higher unionization rates than African Americans. 
B)  men have higher unionization rates than women. 
C)  managers have higher unionization rates than transportation workers. 
D)  workers in mining have higher unionization rates than workers in government.

Question 3

Which of the following involves the creation of human capital?

Accepted Answer

A)  The XYZ Corporation upgrades the machinery on its assembly line. 
B)  Jones receives apprenticeship training as a carpenter. 
C)  Smith buys 30 shares of common stock. 
D)  A retired person decides to reenter the labor force. 
A)  The XYZ Corporation upgrades the machinery on its assembly line. 
B)  Jones receives apprenticeship training as a carpenter. 
C)  Smith buys 30 shares of common stock. 
D)  A retired person decides to reenter the labor force.

Question 4

(Consider This)The story about artist Pablo Picasso illustrates the point that:

Accepted Answer

A)  the demand for labor is a derived demand. 
B)  geographical immobility impedes an efficient allocation of labor resources. 
C)  principal-agent problems can occur in unusual settings. 
D)  present skills reflect past accumulations of human capital. 
A)  the demand for labor is a derived demand. 
B)  geographical immobility impedes an efficient allocation of labor resources. 
C)  principal-agent problems can occur in unusual settings. 
D)  present skills reflect past accumulations of human capital.

Question 5

Answer the question on the basis of the following supply information facing a single firm in a particular labor market: $$\begin{array}{l}
\text { Wage }\quad\quad{Quantity }\
\begin{array} { c c c } 
\text { Rate } && \text { Supplied } \
\hline
\$ 5 & & 1 \
10 & & 2 \
15 & & 3 \
20 & & 4 \
25 & & 5
\end{array}
\end{array}$$ Refer to the given information.This labor supply curve demonstrates that:

Accepted Answer

A)  the firm is selling its output under imperfectly competitive conditions. 
B)  the firm is selling its output under purely competitive conditions. 
C)  higher wage rates must be paid to successive workers to overcome their higher opportunity costs. 
D)  the firm is hiring labor under purely competitive conditions. 
A)  the firm is selling its output under imperfectly competitive conditions. 
B)  the firm is selling its output under purely competitive conditions. 
C)  higher wage rates must be paid to successive workers to overcome their higher opportunity costs. 
D)  the firm is hiring labor under purely competitive conditions.

Question 6

Real wages in the United States are:

Accepted Answer

A)  the highest in the world. 
B)  relatively high,but not as high as in some other industrially advanced nations. 
C)  much higher than output per worker. 
D)  higher than nominal wages. 
A)  the highest in the world. 
B)  relatively high,but not as high as in some other industrially advanced nations. 
C)  much higher than output per worker. 
D)  higher than nominal wages.

Question 7

A monopsonistic employer in an unorganized (nonunion)labor market will:

Accepted Answer

A)  pay a wage rate less than labor's MRP. 
B)  pay the same wage rate but hire fewer workers than if the market was purely competitive. 
C)  hire the number of workers indicated by the intersection of the MRC and the labor supply curves. 
D)  pay a wage rate in excess of labor's MRP. 
A)  pay a wage rate less than labor's MRP. 
B)  pay the same wage rate but hire fewer workers than if the market was purely competitive. 
C)  hire the number of workers indicated by the intersection of the MRC and the labor supply curves. 
D)  pay a wage rate in excess of labor's MRP.

Question 8

Occupational licensing has much the same effect as:

Accepted Answer

A)  inclusive unionism. 
B)  exclusive unionism. 
C)  bilateral monopoly. 
D)  monopsony. 
A)  inclusive unionism. 
B)  exclusive unionism. 
C)  bilateral monopoly. 
D)  monopsony.

Question 9

Collective bargaining occurs under a framework of rules established in the:

Accepted Answer

A)  Sherman Act. 
B)  Clayton Act. 
C)  National Labor Relations Act. 
D)  Employer-Employee Dispute Act. 
A)  Sherman Act. 
B)  Clayton Act. 
C)  National Labor Relations Act. 
D)  Employer-Employee Dispute Act.

Question 10

In a labor market characterized by bilateral monopoly,the wage rate will:

Accepted Answer

A)  be logically indeterminate. 
B)  be established at the level desired by the union. 
C)  be established at the level desired by the employer. 
D)  always be established at the competitive level. 
A)  be logically indeterminate. 
B)  be established at the level desired by the union. 
C)  be established at the level desired by the employer. 
D)  always be established at the competitive level.

Question 11

The long-run trend of real wages:

Accepted Answer

A)  cannot be determined from available data on nominal wages and the price level. 
B)  has been downward because the price level has risen faster than nominal wages. 
C)  has been upward. 
D)  has been downward because labor's share of the domestic income has fallen. 
A)  cannot be determined from available data on nominal wages and the price level. 
B)  has been downward because the price level has risen faster than nominal wages. 
C)  has been upward. 
D)  has been downward because labor's share of the domestic income has fallen.

Question 12

Noncompeting groups of workers are the result of:

Accepted Answer

A)  differences in the age-earnings profiles of workers. 
B)  differences in the "job tastes" of workers. 
C)  differences in the innate and acquired abilities of workers. 
D)  geographic immobility. 
A)  differences in the age-earnings profiles of workers. 
B)  differences in the "job tastes" of workers. 
C)  differences in the innate and acquired abilities of workers. 
D)  geographic immobility.

Question 13

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 skill. 
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 skill. 
D)  attempt to increase the supply of their particular type of labor.

Question 14

In 2011,there were about _____ million union members in the United States.

Accepted Answer

A)  8.4 
B)  11.8 
C)  14.8 
D)  15.7 
A)  8.4 
B)  11.8 
C)  14.8 
D)  15.7

Question 15

Featherbedding refers to:

Accepted Answer

A)  a situation in which a union forces an employer to hire union workers in preference to nonunion workers. 
B)  the requirement that unneeded workers be retained on a job. 
C)  the refusal by one union to handle or transport goods produced by workers in another union. 
D)  disputes among two or more unions as to which will perform certain jobs. 
A)  a situation in which a union forces an employer to hire union workers in preference to nonunion workers. 
B)  the requirement that unneeded workers be retained on a job. 
C)  the refusal by one union to handle or transport goods produced by workers in another union. 
D)  disputes among two or more unions as to which will perform certain jobs.

Question 16

In monopsony:

Accepted Answer

A)  each firm employs a small portion of the total supply of labor. 
B)  the workforce is highly mobile. 
C)  the wage rate paid by the employer varies directly with the number of workers employed. 
D)  the employer is a "wage taker." 
A)  each firm employs a small portion of the total supply of labor. 
B)  the workforce is highly mobile. 
C)  the wage rate paid by the employer varies directly with the number of workers employed. 
D)  the employer is a "wage taker."

Question 17

Critics of minimum-wage legislation argue that it:

Accepted Answer

A)  keeps inefficient producers in business. 
B)  reduces employment. 
C)  undermines incentives to work. 
D)  is deflationary. 
A)  keeps inefficient producers in business. 
B)  reduces employment. 
C)  undermines incentives to work. 
D)  is deflationary.

Question 18

Who is the most likely to be a union member in the United States?

Accepted Answer

A)  A female retail trade worker. 
B)  A male transportation worker. 
C)  An African-American manager. 
D)  A white agricultural worker. 
A)  A female retail trade worker. 
B)  A male transportation worker. 
C)  An African-American manager. 
D)  A white agricultural worker.

Question 19

If the nominal wage rises by 4 percent,and the price level rises by 7 percent,the real wage will:

Accepted Answer

A)  be unaffected. 
B)  rise by 3 percent. 
C)  fall by 3 percent. 
D)  rise by 11 percent. 
A)  be unaffected. 
B)  rise by 3 percent. 
C)  fall by 3 percent. 
D)  rise by 11 percent.

Question 20

In the United States:

Accepted Answer

A)  African Americans have higher unionization rates than whites. 
B)  women have higher unionization rates than men. 
C)  managers have higher unionization rates than transportation workers. 
D)  workers in mining have higher unionization rates than workers in government. 
A)  African Americans have higher unionization rates than whites. 
B)  women have higher unionization rates than men. 
C)  managers have higher unionization rates than transportation workers. 
D)  workers in mining have higher unionization rates than workers in government.

Exam 16: Wage Determination

Suppose Steve Stone takes a job with Zemo Manufacturing,whose labor contract with its unions has an agency shop clause (30 days).Steve:

In the United States:

Which of the following involves the creation of human capital?

(Consider This)The story about artist Pablo Picasso illustrates the point that:

Answer the question on the basis of the following supply information facing a single firm in a particular labor market: Wage Quantity Rate Supplied \ 5 1 10 2 15 3 20 4 25 5 Refer to the given information.This labor supply curve demonstrates that:

Real wages in the United States are:

A monopsonistic employer in an unorganized (nonunion)labor market will:

Occupational licensing has much the same effect as:

Collective bargaining occurs under a framework of rules established in the:

In a labor market characterized by bilateral monopoly,the wage rate will:

The long-run trend of real wages:

Noncompeting groups of workers are the result of:

Craft unions:

In 2011,there were about _____ million union members in the United States.

Featherbedding refers to:

In monopsony:

Critics of minimum-wage legislation argue that it:

Who is the most likely to be a union member in the United States?

If the nominal wage rises by 4 percent,and the price level rises by 7 percent,the real wage will:

In the United States:

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

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