Exam 17: Wage Determination

A) transportation workers
B) teachers
C) legal workers
D) sales workers

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A) The percentage change in the nominal wage plus the percentage change in the price level equals the percentage change in the real wage.
B) The percentage change in the real wage minus the percentage change in the price level equals the percentage change in the nominal wage.
C) The percentage change in the price level minus the percentage change in the nominal wage equals the percentage change in the real wage.
D) The percentage change in the nominal wage minus the percentage change in the price level equals the percentage change in real wage.

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A) wages of electricians are likely to increase and the quantity employed will decrease.
B) wages of electricians are likely to increase and the quantity employed will increase.
C) quantity employed will increase, but the effect on wages is indeterminate.
D) quantity employed will decrease, but the effect on wages is indeterminate.

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A) the minimum wage only applies to a small percentage of the labor force.
B) many who benefit from the minimum wage are teenagers or not poor.
C) the government has been unable to enforce the minimum wage.
D) the average level of wages in the economy is considerably higher than the minimum wage.

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A) adopting restrictive membership policies.
B) supporting strict restrictions on immigration.
C) pushing for mandatory membership for all workers.
D) requiring apprenticeships or occupational licensing.

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A) There is clear evidence that unions have increased the average level of real wage rates for all workers.
B) When fringe benefits are taken into account, the overall compensation of union and nonunion workers is equal.
C) Approximately 10 percent of all work time is lost annually because of strikes.
D) There were 12 major work stoppages in the United States in 2015.

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A) Profit sharing plans will tend to decrease the "free-ride" that some workers get by being part of a team.
B) Employers get greater effort from workers by paying them a relatively high, above-equilibrium wage.
C) Workers have to take additional schooling to learn skills that will enable them to keep their jobs.
D) An increase in production from piece work can result in a decline in product quality.

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

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A) affected labor market is monopsonistic.
B) economy has high unemployment.
C) derived demand for labor is shifting to the left.
D) demand for labor is relatively elastic.

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A) of diminishing returns.
B) employers as a group must pay higher wage rates to obtain more workers.
C) of declining MRC.
D) each employer is a "wage taker."

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A) demand-enhancing union.
B) craft union.
C) inclusive union.
D) industrial union.

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A) derived demand.
B) human capital.
C) opportunity cost.
D) occupational licensure.

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