Exam 10: Labor Markets, Income Distribution, and Poverty

Other things being equal, a decrease in the workplace amenities, such as decreased health care and less generous vacation options, would tend to shift the labor supply curve to the ____, thereby causing the market wages to ____.

Define monopolistic competition.

While unions represent only a fraction of the unskilled workers in the U.S.labor market, any wage increase won by unionized workers is most likely shared with non-union unskilled workers.

About ____ of the population see their economic well-being go either up or down by at least 5 percent from one year to the next.

Women in the workplace seem to be narrowing the wage gap with males.What might be the cause of this shift during the past 25 years?

How do economies of scale result in barriers to entry into oligopoly models?

If the demand for software engineers ____ more slowly than does supply, wages of software engineers will ____.

The concept of derived demand indicated that the demand for a final good or service will be determined by the price of the inputs used to produce that final good or service.

Which of the following does not contribute to increased worker productivity?

If the demand for the output produced by a firm's laborers increased, it would

Monopolistic competition differs from perfect competition only with regard to the number of firms participating in the market.

Wages are approximately ____ higher in union jobs than in comparable nonunion jobs.

In many communities across the country it is very difficult for firms to hire sufficient numbers of entry level workers.If firms do not wish to raise money wages, what else might they do to attract workers?

Which of the following would increase the demand for labor?

Exhibit 10-A Several congressmen and senators have been greatly concerned about the fairness of salaries in the marketplace. They are contemplating enacting a law that would fix the wage rate at W_A. Their aides, who were all excellent economics students, have returned with the results of an investigation into the matter, as portrayed below. -Refer to Exhibit 10-A.If the law was to impose a wage rate of W_A on the K-12 teachers market:

A decrease in the price of a firm's output will shift the firm's demand curve for labor to the right, other things being equal.

Which of the following best explains why garbage collectors are paid a higher wage than many others with comparable skills?

Unlike purely competitive firms, firms in monopolistic competition will operate with excess capacity even in long-run equilibrium.

When making decisions on pricing and other behaviors, oligopolistic firms must take into account the actions of other firms.

Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $98 per day? Why or why not?