Econ Chapter 16 Quiz

The labor force is the part of the adult population that is either working or actively looking for a job.

True

Unions will be more effective at raising wages when it is difficult for nonunion competitors to enter the industry.

True

Unions will be more successful where

globalization is less extensive

If technology is a complement to labor, then advances in technology will __________ the number of workers hired.

increase

Students who go to college when they are younger face a lower opportunity cost of education because

wages are lower for younger people, so they are giving up less in earnings when they spend time in school.

If an extra worker allows a child care center to care for an extra nine children a week, the weekly price of child care per child is $200, and the other workers are all paid wages and benefits totaling $500 per week, then the marginal revenue of that additional worker is

$1,800 per week

If the adult population in the United States was 225 million people and 150 million of those people were in the labor force, the labor force participation rate would be

67%

Which of the following individuals would be likely to face the lowest opportunity cost of a college education?

A high school graduate who has few skills, does not qualify for a full scholarship, and would be able to work as a server at her family's restaurant if she did not go to college.

Which of the following is true about states that have passed "right-to-work" laws?

Employees in those states cannot be compelled to join a union.

If the government passes legislation shortening the workweek from 40 hours to 35 hours, with overtime pay required for more than 35 hours, which of the following would occur?

Employers would face higher labor costs because they would have to pay overtime or train more workers to get the same quantity of work done

Which of the following would be an effect of increased technology on the labor market?

People with fewer skills may face more difficulty getting a job.

The labor force is best defined as the part of the

adult population that is either working or actively looking for a job.

Refer to Table 16.1. What is the marginal revenue of the third unit of labor?

$600

Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, what is the marginal revenue of the third employee?

$80

In 2010, the unemployment rate among workers with a bachelor's degree or higher was

4.7%

Which of the following statements about an effective minimum wage is true?

A minimum wage tends to create unemployment among unskilled workers.

Employees who are members of a labor union can expect to receive lower wages than nonunion workers in the same industry, but can also expect greater job security.

False

Globalization has had a positive effect on private sector labor union membership rates.

False

If the equilibrium wage in the market for unskilled labor is $8.00 per hour, and the government sets a minimum wage at $7.50 per hour, unskilled workers will receive a pay cut of about 50 cents per hour.

False

Reducing the minimum wage would make it more difficult for low-skilled workers to find jobs.

False

The minimum wage makes it possible for more low-skilled workers to find jobs.

False

Which of the following best describes the "education premium"?

The added pay for getting a higher level of education.

Which of the following best describes the marginal cost of labor?

The additional cost to the firm of hiring one more unit of labor.

The market expansion effect of globalization has which of the following effects?

The demand for labor for many kinds of work increases, pushing the equilibrium wage up.

Which of the following best describes the marginal revenue from an additional salesperson at a car dealership?

The increase in revenue to the dealership because of that employee.

If the labor force increases in size, which of the following would NOT occur?

The labor demand curve would shift to the right.

Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, and workers get paid $90 per day, which of the following is equal to 3?

The marginal product of the fourth employee

Which of the following best describes the marginal product of labor for an additional employee in a landscaping firm?

The number of additional acres the firm can mow in a week because of that employee.

The labor pool effect of globalization has which of the following effects?

The supply of labor for many kinds of work increases, pushing the equilibrium wage down.

College-educated workers tend to reach their peak earnings between the ages of 45 and 54.

True

Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, and workers get paid $90 per day, how many workers should the business hire?

Two

Which of the following statements about education and wage rates is true?

While people with high school degrees have had almost no increase in real wages in 30 years, those with college or advanced degrees have had significant increases in pay.

Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, and workers get paid $150 per day, how many workers should the business hire?

Zero

Employees who are members of a union can expect

a wage that is higher than the equilibrium wage in the labor market.

If the labor pool effect of globalization is equal in strength to the market expansion effect, then globalization will lead to __________ in wages and __________ in the number of workers hired.

no change; increase