Question 1

Refer to Figure 31.3 for a competitive labor market. 1 to S2 could be caused by:. A)  An increase in the wage rate. B)  The unionization of another labor market. C)  An increase in the price of the product being produced. D)  An increase in the price of machinery used in the production of the product." class="answers-bank-image d-inline" rel="preload" > A shift in labor supply from S1 to S2 could be caused by:.

Accepted Answer

A)   An increase in the wage rate.
B)   The unionization of another labor market.
C)   An increase in the price of the product being produced.
D)   An increase in the price of machinery used in the production of the product.

Question 2

An oligopsony exists if

Accepted Answer

A)   Only a few firms produce most of the industry's output.
B)   Only a few firms account for most of the industry's employment.
C)   Only one firm accounts for most of the industry's employment.
D)   There is no buyer concentration in the labor market.

Question 3

In a monopoly labor market, the optimal union wage can be read off the marginal revenue product curve.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)   Raise wages to the level of the players' MRP.
B)   Raise wages to competitive levels.
C)   Reduce the supply of professional players and thus increase wages.
D)   Raise wages above the level of the players' MRP.

Question 5

Workers with a particular skill are represented by

Accepted Answer

A)   Craft unions.
B)   Skill unions.
C)   Market unions.
D)   Industrial unions.

Question 6

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 7

The In the News article titled "Free Agents in Sports: A Threat to Monopsony" states, "Individual players were permitted to negotiate with only one team." The reserve clause in player contracts gave franchise owners in the labor market essentially

Accepted Answer

A)   A bilateral monopoly.
B)   A monopoly.
C)   A monopsony.
D)   A competitive market.

Question 8

Public sector unions now

Accepted Answer

A)   Represent a smaller percentage of workers than private sector unions.
B)   Are growing at a smaller rate than private sector unions.
C)   Represent over five times the percentage of workers in private sector unions.
D)   Are illegal in the United States.

Question 9

One World View table titled "Union Membership" shows the unionization rates for several countries including the United States. The decline in the U.S. unionization rate is the result of

Accepted Answer

A)   A relative decline in manufacturing.
B)   A relative decline in service industries.
C)   The growth of large firms relative to small firms.
D)   The decline in worldwide competition.

Question 10

If a union achieves above-equilibrium wages for its membership, the wages of nonunion workers will generally suffer.

Accepted Answer

A) True 
 B)False

Question 11

The United Farm Workers have been unsuccessful for decades in their attempts to organize California's strawberry pickers because the workers

Accepted Answer

A)   Know that replacement workers are readily available.
B)   Don't care about earning higher wages.
C)   Don't understand English.
D)   Are members of a union shop.

Question 12

From the 1930s until today, unions have experienced particularly fast growth in the United States.

Accepted Answer

A) True 
 B)False

Question 13

The unionization rate in the United States has been

Accepted Answer

A)   Increasing for the last 5 years.
B)   Declining for approximately 30 years.
C)   Declining for approximately 15 years.
D)   Declining for over 40 years.

Question 14

A monopsonist must pay a higher net wage rate to hire additional workers because as a single

Accepted Answer

A)   Seller, it has market power.
B)   Seller, it does not have to compete with other firms for customers.
C)   Buyer in the market, it faces an upward-sloping supply curve for labor.
D)   Buyer in the market, it faces a flat supply curve for labor.

Question 15

When a strike or a lockout occurs,

Accepted Answer

A)   Only labor suffers.
B)   Both labor and management suffer.
C)   Only management suffers.
D)   Management suffers from a strike while labor suffers from a lockout.

Question 16

The unionization ratio represents the

Accepted Answer

A)   Percentage of the total labor force belonging to unions.
B)   Market power of unions relative to the market power of nonunion labor.
C)   Proportion of industries that are dominated by unions.
D)   Annual percentage growth in the total number of unions.

Question 17

The percentage of the labor force that belongs to a union is known as the

Accepted Answer

A)   Union share ratio.
B)   Unionization ratio.
C)   Union participation ratio.
D)   Unionized percentage ratio.

Question 18

A monopsonist will hire fewer workers at a lower wage rate than would prevail in a competitive market.

Accepted Answer

A) True 
 B)False

Question 19

Refer to Figure 31.2. What is the competitive level of wages and employment?

Accepted Answer

A)   $11 per hour and 50 workers.
B)   $9 per hour and 40 workers.
C)   $7 per hour and 50 workers.
D)   $6 per hour and 40 workers.

Question 20

Labor markets where power exists on both the demand side and the supply side are rare.

Accepted Answer

A) True 
 B)False

Exam 17: Growth and Productivity: Long-Run Possibilities

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

Correct AnswerverifiedShow Answer

If a union achieves above-equilibrium wages for its membership, the wages of nonunion workers will generally suffer.

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

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Workers with a particular skill are represented by

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When a strike or a lockout occurs,

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The In the News article titled "Free Agents in Sports: A Threat to Monopsony" states, "Individual players were permitted to negotiate with only one team." The reserve clause in player contracts gave franchise owners in the labor market essentially

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Public sector unions now

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An oligopsony exists if

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From the 1930s until today, unions have experienced particularly fast growth in the United States.

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Refer to Figure 31.3 for a competitive labor market. A shift in labor supply from S1 to S2 could be caused by:.

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The United Farm Workers have been unsuccessful for decades in their attempts to organize California's strawberry pickers because the workers

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The unionization rate in the United States has been

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In a monopoly labor market, the optimal union wage can be read off the marginal revenue product curve.

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A monopsonist will hire fewer workers at a lower wage rate than would prevail in a competitive market.

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The unionization ratio represents the

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The percentage of the labor force that belongs to a union is known as the

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A monopsonist must pay a higher net wage rate to hire additional workers because as a single

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Labor markets where power exists on both the demand side and the supply side are rare.

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One World View table titled "Union Membership" shows the unionization rates for several countries including the United States. The decline in the U.S. unionization rate is the result of

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Refer to Figure 31.2. What is the competitive level of wages and employment?

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Refer to Figure 31.3 for a competitive labor market. A shift in labor supply from S₁ to S₂ could be caused by:.

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