Question 1

Suppose a union collects dues at 1 percent of the total wage bill.Maximum dues (and maximum total labor cost)  would be achieved by hiring the amount of labor where

Accepted Answer

A)  The supply curve intersects the marginal wage curve.
B)  The marginal wage is zero.
C)  The factor demand curve intersects the factor supply curve.
D)  The marginal wage curve intersects the marginal factor cost curve.

Question 2

Labor supply can be defined as the

Accepted Answer

A)  Total number of people who are employable.
B)  Total number of people in paid employment.
C)  Willingness and ability of people to work at alternative wage rates in a given period of time, ceteris paribus.
D)  Total number of individuals who are either employed or actively seeking employment.

Question 3

Unlike most monopolies, unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the impact of unions on relative wages (that is, compare the wages of union workers with those of nonunion workers).

Accepted Answer

As a result of union efforts to limit th...

Question 5

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33rd worker is

Accepted Answer

A)  $273.
B)  $3,667.
C)  $121,000.
D)  $9,000.

Question 6

The equilibrium wage rate is the rate at which the quantity of labor demanded equals the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

An In the News article titled "Caterpillar vs.the UAW" describes collective bargaining as

Accepted Answer

A)  The competition between labor unions for workers.
B)  Direct negotiations between employers and labor unions.
C)  Government intervention to end a strike.
D)  Negotiations between workers and labor union organizers.

Question 8

The current unionization rate for the U.S.labor force

Accepted Answer

A)  Has been rising since the mid
B)  Reflects the relative decline in U.S.manufacturing.
C)  Is above 20 percent.
D)  Has increased due to the growth of the service sector.

Question 9

The decline in unionization can be explained by all of the following except

Accepted Answer

A)  Increased worldwide investment barriers.
B)  Increased global competition.
C)  Downsizing of major corporations.
D)  A relative decline in manufacturing.

Question 10

Management's power in collective bargaining sessions rests on

Accepted Answer

A)  The company's stock valuation.
B)  The ability to lock out workers by closing stores or factories.
C)  The ability to fire nonunionized workers.
D)  The firm's market power in pricing its product.

Question 11

The distinction between market wages and marginal wages must be made because of the downward slope of the labor demand curve.

Accepted Answer

A) True 
 B)False

Question 12

Wage rate  (dollars per hour)   Labor demanded  (workers)   Total labor cost-hourly (dollars per hour)  Marginal wage(dollars per worker)  $260‾‾222‾‾184‾‾146‾‾108‾‾\begin{array}{cc}\begin{array}{c}	ext { Wage rate } \	ext { (dollars per hour)  }\end{array} & \begin{array}{c}	ext { Labor demanded } \	ext { (workers)  }\end{array}& \begin{array}{c}	ext { Total labor} \	ext { cost-hourly}\	ext { (dollars per hour) } \end{array} & \begin{array}{c}	ext {} \	ext { Marginal wage}\	ext {(dollars per worker)  } \end{array} \\$ 26 & 0&\underline{\quad\quad}&\underline{\quad\quad} \22 & 2 &\underline{\quad\quad}&\underline{\quad\quad}\18 & 4 &\underline{\quad\quad}&\underline{\quad\quad}\14 & 6 &\underline{\quad\quad}&\underline{\quad\quad}\10 & 8&\underline{\quad\quad}&\underline{\quad\quad} \end{array} Wage rate  (dollars per hour)  ​$2622181410​ Labor demanded  (workers)  ​02468​ Total labor cost-hourly (dollars per hour) ​​​​​​​ Marginal wage(dollars per worker)  ​​​​​​​

Table 31.1	ext { Table } 31.1 Table 31.1  Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost)  and the marginal wage.Which of the following wages, in Table 31.1, would allow the most workers to be hired?

Accepted Answer

A)  $10 per hour.
B)  $14 per hour.
C)  $18 per hour.
D)  $22 per hour.

Question 13

Increased global competition is one reason why unionization has become more popular.

Accepted Answer

A) True 
 B)False

Question 14

The exercise of union power will tend to

Accepted Answer

A)  Reduce the supply of labor available to nonunion industries.
B)  Cause profits to be higher in unionized industries.
C)  Increase the supply of labor available to nonunion industries.
D)  Cause product prices to be lower in unionized industries.

Question 15

If there are many employers in a market and each has limited market power, the demand for labor is likely to be characterized as

Accepted Answer

A)  Competitive.
B)  Monopsonistic.
C)  Oligopolistic.
D)  Monopolistic.

Question 16

A primary objective of unions is to raise the wages of union members.

Accepted Answer

A) True 
 B)False

Question 17

With a union, the total number of workers hired is where

Accepted Answer

A)  Employment is lower than at the competitive equilibrium.
B)  The marginal wage is negative.
C)  Employment and wages are both at the maximum possible levels.
D)  Employment could not be increased by reducing the wage rate.

Question 18

When only one buyer has access to a particular labor market,

Accepted Answer

A)  A monopoly exists.
B)  There is no seller concentration.
C)  A monopsony exists.
D)  There is no buyer concentration.

Question 19

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.This means

Accepted Answer

A)  It will produce more than it would in a competitive labor market.
B)  The marginal factor cost curve is below the average cost of labor curve.
C)  The firm has market power.
D)  The labor market is perfectly competitive.

Question 20

All of the following are true for a monopsonist except

Accepted Answer

A)  The marginal factor cost for labor exceeds the wage rate.
B)  The demand for labor is the same as the marginal revenue product of labor.
C)  The derived demand for labor is downward-sloping.
D)  The market demand for labor is upward-sloping.

Exam 17: Labor Unions

Suppose a union collects dues at 1 percent of the total wage bill.Maximum dues (and maximum total labor cost) would be achieved by hiring the amount of labor where

Correct Answer
verified

Unlike most monopolies, unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Correct Answer
verified

Correct Answer
verified

With a union, the total number of workers hired is where

Correct Answer
verified

The exercise of union power will tend to

Correct Answer
verified

Management's power in collective bargaining sessions rests on

Correct Answer
verified

Discuss the impact of unions on relative wages (that is, compare the wages of union workers with those of nonunion workers).

Correct Answer
verified
As a result of union efforts to limit th...
View Answer

If there are many employers in a market and each has limited market power, the demand for labor is likely to be characterized as

Correct Answer
verified

Labor supply can be defined as the

Correct Answer
verified

The equilibrium wage rate is the rate at which the quantity of labor demanded equals the quantity supplied.

Correct Answer
verified

When only one buyer has access to a particular labor market,

Correct Answer
verified

An In the News article titled "Caterpillar vs.the UAW" describes collective bargaining as

Correct Answer
verified

The current unionization rate for the U.S.labor force

Correct Answer
verified

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.This means

Correct Answer
verified

All of the following are true for a monopsonist except

Correct Answer
verified

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33^rd worker is

Correct Answer
verified

The decline in unionization can be explained by all of the following except

Correct Answer
verified

A primary objective of unions is to raise the wages of union members.

Correct Answer
verified

The distinction between market wages and marginal wages must be made because of the downward slope of the labor demand curve.

Correct Answer
verified

Increased global competition is one reason why unionization has become more popular.

Correct Answer
verified

Exam 17: Labor Unions

Suppose a union collects dues at 1 percent of the total wage bill.Maximum dues (and maximum total labor cost) would be achieved by hiring the amount of labor where

Correct AnswerverifiedShow Answer

Unlike most monopolies, unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

With a union, the total number of workers hired is where

Correct AnswerverifiedShow Answer

The exercise of union power will tend to

Correct AnswerverifiedShow Answer

Management's power in collective bargaining sessions rests on

Correct AnswerverifiedShow Answer

Discuss the impact of unions on relative wages (that is, compare the wages of union workers with those of nonunion workers).

Correct AnswerverifiedAs a result of union efforts to limit th...View AnswerShow Answer

If there are many employers in a market and each has limited market power, the demand for labor is likely to be characterized as

Correct AnswerverifiedShow Answer

Labor supply can be defined as the

Correct AnswerverifiedShow Answer

The equilibrium wage rate is the rate at which the quantity of labor demanded equals the quantity supplied.

Correct AnswerverifiedShow Answer

When only one buyer has access to a particular labor market,

Correct AnswerverifiedShow Answer

An In the News article titled "Caterpillar vs.the UAW" describes collective bargaining as

Correct AnswerverifiedShow Answer

The current unionization rate for the U.S.labor force

Correct AnswerverifiedShow Answer

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.This means

Correct AnswerverifiedShow Answer

All of the following are true for a monopsonist except

Correct AnswerverifiedShow Answer

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33rd worker is

Correct AnswerverifiedShow Answer

The decline in unionization can be explained by all of the following except

Correct AnswerverifiedShow Answer

A primary objective of unions is to raise the wages of union members.

Correct AnswerverifiedShow Answer

The distinction between market wages and marginal wages must be made because of the downward slope of the labor demand curve.

Correct AnswerverifiedShow Answer

Increased global competition is one reason why unionization has become more popular.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
As a result of union efforts to limit th...
View 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

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33^rd worker is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified