micro test 6

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?

$21 per hour.

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

$9,000.

Public sector unionization in the United States is currently closest to ________ percent.

35

A workplace that requires workers to become union members within 30 days of being hired by a firm is

A union shop.

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

-$4.

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

Buyer in the market, it faces an upward-sloping supply curve for labor.

Relative to nonunion wages, one reason union wages are

Higher is because unions are more likely in capital-intensive industries where wages tend to be higher.

Typical goals of a labor union in the United States include

Higher wages, better working conditions, and more job security.

When an individual's MRP is not measurable, his or her market wage is usually determined by

His or her opportunity wage.

The elasticity of labor supply measures the

Responsiveness of labor supplied to changes in the wage rate.

The efficiency decision involves choosing the input combination or process that

Results in the least cost for a given output.

Because of the law of diminishing returns, as additional workers are hired, total output

Rises at a diminishing rate initially and eventually falls.

If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then

The additional unit of labor should be employed.

To be successful in changing wage rates and employment conditions, labor unions need to have control over only

The labor supply decisions of individual workers.

A competitive firm should continue to hire workers until the MRP is equal to

The market wage rate.

When a strike or a lockout occurs,

both labor and management suffer

A union evaluates job offers based on the

collective interests of its members

As an individual earns additional income, the marginal utility of income tends to

decrease

Over the last 10 years in the United States, the private sector unionization rate has ______ and the public sector unionization rate has _______.

fallen; risen

If Janella increases her supply of labor by 6 percent in response to a 5 percent increase in the wage rate, her elasticity of labor supply must be

1.2

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

Direct negotiations between employers and labor unions.

As we work fewer hours and our leisure time increases, the opportunity cost of labor

Falls and the marginal utility of income rises.

The difference between craft unions and industrial unions is that industrial unions usually

Include workers in an industry, while craft unions represent workers with a particular skill.

The labor supply curve starts to bend backward once the

Income effect exceeds the substitution effect.

Higher wage rates allow a person to reduce the hours worked without losing income. This is known as the

Income effect.

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

Know that replacement workers are readily available.

The opportunity wage is often a better measure of executive pay than

MRP because of the difficulty in quantifying executive output.

In determining how much labor union workers will offer, the union concerns itself mainly with the

Marginal wage curve.

The equilibrium wage rate is determined by

Market labor supply and market labor demand.

Unions have had an impact on U.S. firms by supporting all of the following types of legislation except

National security laws.

The demand for labor determines the

Number of available jobs.

Ceteris paribus, all of the following result when the minimum wage is raised and is above the equilibrium in a competitive market, except

There are fewer workers available to work.

Which of the following is true about the equilibrium market wage? A. All workers are satisfied with the wage.

There is no unemployment in the market at the equilibrium wage.

Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?

There will be no unemployment.

Labor supply can be defined as the

Willingness and ability of people to work at alternative wage rates in a given period of time, ceteris paribus.