Question 1

Occupational licensing has much the same effect as:

Accepted Answer

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

Question 2

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.

Question 3

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.

Question 4

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.

Question 5

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.

Question 6

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.

Question 7

Answer the question on the basis of the following supply information facing a single firm in a particular labor market:   Wage Quantity Rate  Supplied $51102153204255\begin{array}{l}	ext { Wage }\quad\quad{Quantity }\\begin{array} { c c c } 	ext { Rate } && 	ext { Supplied } \\hline\$ 5 & & 1 \10 & & 2 \15 & & 3 \20 & & 4 \25 & & 5\end{array}\end{array} Wage Quantity Rate $510152025​​ Supplied 12345​​​  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.

Question 8

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.

Question 9

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.

Question 10

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.

Question 11

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.

Question 12

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."

Question 13

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 14

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.

Question 15

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.

Question 16

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.

Question 17

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.

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

(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.

Question 20

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

Exam 16: Wage Determination

Correct Answer
verified

Critics of minimum-wage legislation argue that it:

Correct Answer
verified

Occupational licensing has much the same effect as:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Featherbedding refers to:

Correct Answer
verified

Noncompeting groups of workers are the result of:

Correct Answer
verified

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

Correct Answer
verified

In the United States:

Correct Answer
verified

In the United States:

Correct Answer
verified

Real wages in the United States are:

Correct Answer
verified

Which of the following involves the creation of human capital?

Correct Answer
verified

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

Correct Answer
verified

The long-run trend of real wages:

Correct Answer
verified

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

Correct Answer
verified

Craft unions:

Correct Answer
verified

In monopsony:

Correct Answer
verified

Exam 16: Wage Determination

Correct AnswerverifiedShow Answer

Critics of minimum-wage legislation argue that it:

Correct AnswerverifiedShow Answer

Occupational licensing has much the same effect as:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Featherbedding refers to:

Correct AnswerverifiedShow Answer

Noncompeting groups of workers are the result of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the United States:

Correct AnswerverifiedShow Answer

In the United States:

Correct AnswerverifiedShow Answer

Real wages in the United States are:

Correct AnswerverifiedShow Answer

Which of the following involves the creation of human capital?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The long-run trend of real wages:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Craft unions:

Correct AnswerverifiedShow Answer

In monopsony:

Correct AnswerverifiedShow Answer

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