chapter 17

Critics of the minimum wage argue that as an antipoverty device, it is "poorly targeted." By this they mean that

many who benefit from the minimum wage are teenagers or not poor.

"Player drafts" of professional athletes

promote monopsony in the hiring of professional athletes.

Long-run real wages in the United States have

risen because growth in the demand for labor has exceeded growth in the supply of labor.

A craft union attempts to increase wage rates by

shifting the labor supply curve to the left.

A monopsonist's wage cost in hiring an additional worker is the

worker's wage rate plus the wage increases paid to all workers already employed.

If a firm faces an upsloping labor supply curve (and there is no union or minimum wage), its

MRC curve is also upsloping.

If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as

a bilateral monopoly.

Data on education and earnings reveal

a positive relationship between the two

Marginal resource cost refers to the

amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.

Compensating differences in wages pay workers for

differences in the nonmonetary characteristics of jobs

Increases in the productivity of labor result partly from

improvements in technology.

Marginal revenue product (MRP) of labor refers to the

increase in total revenue resulting from hiring one more unit of labor.

If the nominal wages of carpenters rose by 5 percent in 2013 and the price level increased by 3 percent, then the real wages of carpenters

increased by 2 percent.

Inclusive unionism is practiced mostly by

industrial unions.

According to some supporters of the minimum wage, it has very small or even nonexistent negative employment effects because

it reduces turnover among minimum-wage workers, prompts employers to use them more efficiently, and thus raises their average productivity.

Which of the following tactics is most associated with the demand-enhancement union model?

lobbying for increases in public expenditures on the product it is producing

The economic term for a firm that is the sole buyer in a market is

monopsonist.

If a firm is hiring a certain type of labor under purely competitive conditions,

the labor supply and marginal labor (resource) cost curves will coincide and be perfectly elastic.