Question 1

The idea of compensating differences is used

Accepted Answer

A)  by inclusive unions as an argument in bargaining for wage rate increases.
B)  to justify the application of minimum wages to low-wage labor markets.
C)  to explain the divergence between wage rates and marginal resource cost.
D)  to explain wage rate differences based on differing nonmonetary aspects of jobs.

Question 2

The supply curve of labor faced by an individual firm in a purely competitive labor market is horizontal.

Accepted Answer

A) True 
 B)False

Question 3

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.

Question 4

In the demand-enhancing union model, a union tries to increase the wage rate through actions such as promoting the industry's product or raising labor productivity.

Accepted Answer

A) True 
 B)False

Question 5

Independent unions

Accepted Answer

A)  have greater combined membership than the AFL-CIO.
B)  are not affiliated with the AFL-CIO or Change to Win.
C)  include the United Autoworkers and United Steelworkers.
D)  have about the same combined membership as the AFL-CIO.

Question 6

Inclusive unionism is practiced mostly by

Accepted Answer

A)  professional and semiprofessional employees.
B)  small unions consisting of skilled workers, such as the bricklayers.
C)  industrial unions.
D)  craft unions.

Question 7

An industrial union

Accepted Answer

A)  is most concerned with increasing the demand for workers in an industry.
B)  restricts the supply of labor through licensing requirements.
C)  organizes a wide range of workers in an industry to gain bargaining power.
D)  is most effective in a purely competitive industry.

Question 8

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage aspects, the two firms offer the same job characteristics.We would expect

Accepted Answer

A)  wage rates at Ajax to be higher than at Acme.
B)  wage rates at Ajax to be lower than at Acme.
C)  wage rates at Ajax and Acme to be the same.
D)  workers at Ajax would have to be monitored more closely than those at Acme.

Question 9

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.

Question 10

Minimum wage laws have contributed to higher unemployment levels among teenagers and minorities.

Accepted Answer

A) True 
 B)False

Question 11

In 2015, approximately 5 percent of all work time lost was due to work stoppages.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

Labor unions are restrained in their wage demands because

Accepted Answer

A)  legislation limits annual increases in nominal wages to 6 percent.
B)  the labor demand curve is downsloping.
C)  marginal wage cost curves lie above labor supply curves in most labor markets.
D)  most unions deal with monopsonists who have superior bargaining power.

Question 14

Which of the following factors is not relevant in explaining the persistence of wage differentials?

Accepted Answer

A)  labor immobility
B)  compensating differences
C)  free public education
D)  noncompeting groups

Question 15

If all workers were homogeneous, all jobs were equally attractive to workers, and labor markets were perfectly competitive,

Accepted Answer

A)  compensating differences would cause wage differentials.
B)  noncompeting groups of workers would result in wage differentials.
C)  all workers would receive the same wage rate.
D)  worker mobility would occur such that wage differentials would widen.

Question 16

A monopsonistic employer may sell its product in a competitive market.

Accepted Answer

A) True 
 B)False

Question 17

The earnings of highly educated workers

Accepted Answer

A)  rise more slowly than those of less-educated workers.
B)  rise more rapidly than those of less-educated workers.
C)  rise at about the same rate as those of less-educated workers.
D)  stagnate earlier than do those of less-educated workers.

Question 18

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.

Question 19

Pay plans that are designed to elicit a desired level of performance from workers are generally called

Accepted Answer

A)  basic wage-plus-fringe benefits plans.
B)  annual-and-renewable salary plans.
C)  pay for performance plans.
D)  design-and-performance plans.

Question 20

In 2015, food workers had a much higher unionization rate than teachers, according to U.S.Bureau of Labor Statistics data.

Accepted Answer

A) True 
 B)False

Exam 17: Wage Determination

Inclusive unionism is practiced mostly by

Correct AnswerverifiedShow Answer

In 2015, approximately 5 percent of all work time lost was due to work stoppages.

Correct AnswerverifiedShow Answer

In the United States,

Correct AnswerverifiedShow Answer

Which of the following involves the creation of human capital?

Correct AnswerverifiedShow Answer

The earnings of highly educated workers

Correct AnswerverifiedShow Answer

Which of the following factors is not relevant in explaining the persistence of wage differentials?

Correct AnswerverifiedShow Answer

The supply curve of labor faced by an individual firm in a purely competitive labor market is horizontal.

Correct AnswerverifiedShow Answer

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage aspects, the two firms offer the same job characteristics.We would expect

Correct AnswerverifiedShow Answer

Labor unions are restrained in their wage demands because

Correct AnswerverifiedShow Answer

In the demand-enhancing union model, a union tries to increase the wage rate through actions such as promoting the industry's product or raising labor productivity.

Correct AnswerverifiedShow Answer

A monopsonistic employer may sell its product in a competitive market.

Correct AnswerverifiedShow Answer

Minimum wage laws have contributed to higher unemployment levels among teenagers and minorities.

Correct AnswerverifiedShow Answer

The idea of compensating differences is used

Correct AnswerverifiedShow Answer

Pay plans that are designed to elicit a desired level of performance from workers are generally called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In 2015, food workers had a much higher unionization rate than teachers, according to U.S.Bureau of Labor Statistics data.

Correct AnswerverifiedShow Answer

An industrial union

Correct AnswerverifiedShow Answer

Independent unions

Correct AnswerverifiedShow Answer

If all workers were homogeneous, all jobs were equally attractive to workers, and labor markets were perfectly competitive,

Correct AnswerverifiedShow Answer

Unions may increase productivity by

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified