Question 1

Use the following to answer question(s): Minimum Wage and Monopsony
 
-(Exhibit: Minimum Wage and Monopsony) In the absence of a minimum wage, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period.

Accepted Answer

A)  L₁ 
B)  L₂ 
C)  L₃ 
D)  none of the above

Question 2

Use the following to answer question 63-70.
Exhibit: Monopoly and Monopsony
 
-(Exhibit: Monopoly and Monopsony) In monopoly, the equilibrium quantity of output will be where ________ , and in monopsony, equilibrium quantity of input will be where ________.

Accepted Answer

A)  P = MC; MRP = MFC 
B)  MR = MC; MRP = MP times Pₒᵤtpᵤt 
C)  MR = MC; MRP = MFC 
D)  P > MC; factor price > MFC

Question 3

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

Accepted Answer

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

Question 4

Laws that prohibit union-shop rules are called:

Accepted Answer

A)  nonunion laws. 
B)  right-to-work laws. 
C)  anti-union laws. 
D)  open-shop laws.

Question 5

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 perfectly competitive factor market, the equilibrium-employment level would be:

Accepted Answer

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

Question 6

Unions only represent skilled workers.

Accepted Answer

A) True 
 B)False

Question 7

Unions have often tended to be vigorous _______ of _______.

Accepted Answer

A)  opponents; on-the-job training programs 
B)  proponents; wage ceilings 
C)  proponents; encouraging imports and free trade 
D)  opponents; immigration

Question 8

The wage in a bilateral monopoly will be closer to the monopolistic or monopsonistic wage, depending on the relative bargaining strength of the buyer and seller.

Accepted Answer

A) True 
 B)False

Question 9

The perfectly competitive firm's demand curve for labor is:

Accepted Answer

A)  the MFC of labor. 
B)  MP of labor times the price of output. 
C)  the addition to revenue resulting from selling an additional unit of the output. 
D)  the same as its marginal product curve.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The Case in Point on Boeing, analyzed the company's decision to locate a new plant in:

Accepted Answer

A)  South Carolina, which is generally a nonunion state rather than Washington in which workers are generally union members. 
B)  Washington, which is generally a nonunion state, rather than South Carolina in which workers are generally union members. 
C)  China to avoid taxation and union issues. 
D)  China in order to take advantage of lower wage costs in general.

Question 12

In a perfectly competitive factor market, the supply of factor to an individual firm is:

Accepted Answer

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

Question 13

In a perfectly competitive factor market, a firm faces a(n):

Accepted Answer

A)  market-determined price for each factor it hires. 
B)  perfectly elastic demand curve for each factor. 
C)  inelastic supply curve of each factor. 
D)  upward-sloping demand curve for its output.

Question 14

Right-to-work laws:

Accepted Answer

A)  guarantee jobs to all job seekers. 
B)  have increased union power. 
C)  prohibit union-shop rules. 
D)  increase the demand for skilled labor.

Question 15

Given monopsony in a factor market:

Accepted Answer

A)  the supply curve of a factor and the MFC are the same thing. 
B)  the supply curve of a factor lies below the MFC curve of the factor. 
C)  the MFC curve of a factor lies below the supply curve of the factor. 
D)  the MRP curve lies everywhere above the MFC curve.

Question 16

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

Accepted Answer

A)  $11. 
B)  $21. 
C)  $100. 
D)  $121.

Question 17

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

Accepted Answer

A)  is less than the price of a factor in an otherwise perfectly competitive factor market. 
B)  is equal to the price of a factor in an otherwise perfectly competitive factor market. 
C)  decreases with the quantity of the factor sold. 
D)  increases with the quantity of the factor sold.

Question 18

Unions may attempt to raise wages by:

Accepted Answer

A)  decreasing the demand for labor. 
B)  increasing the supply of labor. 
C)  encouraging workers to retire early. 
D)  agreeing never to strike.

Question 19

In monopsony, if the wage is determined for the quantity of factor input where MRP = MFC, a minimum wage established above the monopsony wage, but below where the competitive wage would be, will:

Accepted Answer

A)  lead to more unemployment. 
B)  lead to lower employment. 
C)  lead to higher employment. 
D)  lower wages.

Question 20

Monopoly is a _______ in the _______ market, and monopsony is a _______ in the ________market.

Accepted Answer

A)  price taker; product; price taker; factor 
B)  price setter; factor; price taker; product 
C)  price setter; product; price setter; factor 
D)  price setter; product; price taker; factor

Exam 14: Imperfectly Competitive Markets for Factors of Production

Use the following to answer question(s) : Minimum Wage and Monopsony -(Exhibit: Minimum Wage and Monopsony) In the absence of a minimum wage, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period.

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In monopoly, the equilibrium quantity of output will be where , and in monopsony, equilibrium quantity of input will be where .

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

Laws that prohibit union-shop rules are called:

Unions only represent skilled workers.

Unions have often tended to be vigorous _ of _.

The wage in a bilateral monopoly will be closer to the monopolistic or monopsonistic wage, depending on the relative bargaining strength of the buyer and seller.

The perfectly competitive firm's demand curve for labor is:

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

The Case in Point on Boeing, analyzed the company's decision to locate a new plant in:

In a perfectly competitive factor market, the supply of factor to an individual firm is:

In a perfectly competitive factor market, a firm faces a(n) :

Right-to-work laws:

Given monopsony in a factor market:

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

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

Unions may attempt to raise wages by:

In monopsony, if the wage is determined for the quantity of factor input where MRP = MFC, a minimum wage established above the monopsony wage, but below where the competitive wage would be, will:

Monopoly is a ___ in the _ market, and monopsony is a _ in the ____market.

Exam 14: Imperfectly Competitive Markets for Factors of Production

Use the following to answer question(s) : Minimum Wage and Monopsony -(Exhibit: Minimum Wage and Monopsony) In the absence of a minimum wage, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period.

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In monopoly, the equilibrium quantity of output will be where ________ , and in monopsony, equilibrium quantity of input will be where ________.

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

Laws that prohibit union-shop rules are called:

Unions only represent skilled workers.

Unions have often tended to be vigorous _______ of _______.

The wage in a bilateral monopoly will be closer to the monopolistic or monopsonistic wage, depending on the relative bargaining strength of the buyer and seller.

The perfectly competitive firm's demand curve for labor is:

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

The Case in Point on Boeing, analyzed the company's decision to locate a new plant in:

In a perfectly competitive factor market, the supply of factor to an individual firm is:

In a perfectly competitive factor market, a firm faces a(n) :

Right-to-work laws:

Given monopsony in a factor market:

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

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

Unions may attempt to raise wages by:

In monopsony, if the wage is determined for the quantity of factor input where MRP = MFC, a minimum wage established above the monopsony wage, but below where the competitive wage would be, will:

Monopoly is a _______ in the _______ market, and monopsony is a _______ in the ________market.

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In monopoly, the equilibrium quantity of output will be where , and in monopsony, equilibrium quantity of input will be where .

Unions have often tended to be vigorous _ of _.

Monopoly is a ___ in the _ market, and monopsony is a _ in the ____market.