Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 17 Test Bank Key
1. Labor supply can be defined as the
2. As long as additional workers are attracted into the labor force by higher wages, the market labor supply curve
is
3. The demand for labor determines the
4. The quantities of labor employers are willing and able to hire at alternative wages in a given time period,
ceteris paribus, is the definition of labor
A. Supply.
5. Because firms are willing to hire additional workers at lower wages, the market labor demand curve is
A. Vertical.
6. The equilibrium wage rate is determined
7. Workers who demand a wage that is higher than the equilibrium wage
8. Walmart, the largest employer in the United States,
9. The largest employer in the United States is
A. The federal government.
10. The largest labor union in the United States represents approximately
11. The largest labor unions in the United States are the
A. International Brotherhood of Teamsters (Teamsters).
12. Public sector unions now
A. Represent a smaller percentage of workers than private sector unions.
13. Workers with a particular skill are represented by
14. Workers who organize themselves along industry lines are represented by
15. Which of the following is an example of an industrial union?
16. The difference between craft unions and industrial unions is that industrial unions usually
17. Typical goals of a labor union in the United States include
A. Higher wages, better working conditions, and more job security.
job security, and more nonwage compensation, with higher wages being the primary objective.
18. Typical goals of a labor union in the United States include
19. Because a union is a form of monopoly, it must be concerned about the ________ slope of the demand curve
for labor.
20. The marginal wage is measured by
21. Unions must worry about the marginal wage because it indicates the
22. If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from
five to seven workers, the marginal wage is
23. In determining how much labor union workers will offer, the union concerns itself mainly with the
A. Marginal revenue product curve.
24. A union evaluates job offers based on
25. If 10 workers will be hired by a firm at a wage rate of $15 per hour, but the 11th worker will be hired only if the
wage rate falls to $14 per hour, then the marginal wage of the 11th worker is
26. If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000
27. If a firm hires 10 workers at $6 per hour each and the 11th worker will be hired only if the wage rate falls to
$5 per hour, the marginal wage rate must be
28. If a firm hires 12 workers at $9 per hour each and the 13th worker will be hired only if the wage rate falls to
$8 per hour, the marginal wage rate must be
A. -$8.
29. Total wages paid to labor are maximized when workers are hired up to the point where the
30. 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
31. Given that unions face a downward-sloping demand curve for labor, which of the following is not
true concerning the optimal union wage rate at a given employment level?
32. From a union's perspective, the optimal level of employment is determined by the intersection of the
33. With a union, the total number of workers hired is where
A. Employment is lower than at the competitive equilibrium.
34. If the sellers of labor in a competitive market decided to unionize, ceteris paribus, then wages would
35. To be successful in changing wage rates and employment conditions, labor unions need to have control over
only
A. Their own members.
36. A workplace that requires workers to become union members within 30 days of being hired by a firm is
37. A union shop is an employment setting in which workers
A. Must belong to a specific union in order to be hired.
38. The United Farm Workers have been unsuccessful for decades in their attempts to organize
California's strawberry pickers because the workers
39. Union shops are subject to potential competition
A. Because some union shop workers refuse to join the union.
40. The unionization ratio represents the
41. The percentage of the labor force that belongs to a union is known as the
42. The unionization ratio grew most rapidly in the United States between
43. In the last 10 years, private union membership has
44. The unionization rate in the United States has been
45. The current private sector unionization rate in the United States is closest to
46. The current unionization rate for the U.S. labor force
47. Over the last 10 years in the United States, the private sector unionization rate has ______ and the public
sector unionization rate has _______.
A. fallen; fallen
48. Private sector unionization in the United States is currently closest to ________ percent.
49. Public sector unionization in the United States is currently closest to ________ percent.
50. Unionization rates have
51. The old industrial unions are being supplanted by
A. Public service unions.
52. A monopsony
53. When only one buyer has access to a particular labor market,
A. A monopoly exists.
54. All of the following are true for a monopsonist except
A. The marginal factor cost for labor exceeds the wage rate.
55. Which of the following labor markets is classified as a monopsony?
56. If there are many employers in a market and each has limited market power, the demand for labor is likely to be
characterized as
57. An oligopsony exists if
A. Only a few firms produce most of the industry's output.
58. Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.
This means
59. The distinguishing characteristic of labor market monopsonies is the fact that
60. A monopsonist must pay a higher net wage rate to hire additional workers because as a single
A. Seller, it has market power.
61. The marginal factor cost for labor is
62. From an economic perspective, the efforts of professional football, baseball, and basketball players in the
United States to win the right to become free agents was really an effort to
63. The marginal factor cost for a buyer with market power is
64. A profit-maximizing monopsonist will hire workers at the point where the marginal factor cost curve
intersects the
A. Marginal wage curve.
65. The wage rate that a monopsonist would find most profitable is the wage
66. Suppose a monopsonist must pay $10 per hour to attract 10 workers. If the same monopsonist must raise its
wage to $11 per hour to attract the 11th worker, what is its marginal factor cost for labor?
67. The profit-maximizing level of labor, in a union-dominated labor market, occurs where
68. If the marginal factor cost is less than labor demand, a monopsonist should
69. In equilibrium, the monopsonist's labor demand will
A. Exceed labor supply.
70. A profit-maximizing monopsonist will hire the quantity of labor where
71. Compared with a competitive market, a monopsonist will pay a ________ wage and hire ________
workers.
A. higher; fewer
72. A market with one buyer and one seller is a
The confrontation of power on both sides of the labor market is a situation referred to as bilateral monopoly.
73. In a bilateral monopoly, wages and employment are determined by
A. Negotiation.
74. Which of the following is not true about the wage level in a bilateral monopoly?
75. Collective bargaining
A. Involves direct negotiations between labor unions and employers.
76. A market that experiences both strikes and lockouts at different times is most likely characterized by
A. Monopoly.
77. When management shuts down a plant and does not allow workers to perform their jobs, there is a
78. The refusal to work by unionized labor is an example of
79. When a strike or a lockout occurs,
80. What percentage of the 20,000 collective bargaining agreements negotiated each year are concluded without
recourse to a strike?
81. Management's power in collective bargaining sessions rests
82. The effect of union exclusion of nonunion workers is
83. Unions may lower real wages in the nonunion sector because
84. The exercise of union power will tend to
A. Reduce the supply of labor available to nonunion industries.
85. Relative to nonunion wages, one reason union wages are
A. Higher is because unions are more likely in capital-intensive industries where wages tend to be higher.
86. The labor share of total income is the proportion of total income earned by
87. A firm that attempts to pass along the cost of higher union wages to consumers in the form of higher prices
will be more successful if the price elasticity of demand for its product is
A. Inelastic.
88. Productivity is
A. The inverse of cost efficiency.
89. Unions have had an impact on U.S. firms by supporting all of the following types of legislation except
A. Civil rights legislation.
90. Union work rules may restrict productivity in all of the following ways except
