Microeconomics Week 14

Negotiations between unions and a firm or firms is called______________________.

collective bargaining

If immigration consists of mainly high-skilled workers, then a(n)____________in immigration will _______________the wages of high-skilled workers.

decrease, increase

The ________________shows the amount of time an individual is willing to work at various wage rates:

labor supply curve

A firm will hire workers up to the quantity at which the wage rate equals the:

marginal revenue product of labor.

In the town of Micro City, a single employer dominates the labor market. This is an example of:

monopsony

Compared to a competitive labor market, a bilateral monopoly will result in:

a lower level of employment and indeterminate wages.

The decline in union membership in the U.S. has been contributed to all of the following except:

Steadily increasing average wages leading to less desire for bargaining power.

Compared with a competitive labor market, a monopsonist hires _____________ workers and pays __________wages.

fewer; lower

Assume that the going wage for a worker at a competitive firm is $50 a day. If the marginal revenue product for the sixth worker is $45 a day, the:

firm should hire fewer than six workers.

The earnings gap in the U.S. labor market between black and white workers_________________.

has diminished since 1960, but a gap still remains

In a perfectly competitive labor market model, an increase in the minimum wage would lead to what response in the labor supplied to the market, ceteris paribus?

increase the number of workers seeking work.

The market labor supply curve is:

positively sloped

The demand for labor is considered a derived demand, since it depends on:

the consumer demand for the output produced.

An assumption of the competitive market for labor is:

the workers are all equally productive

Collective bargaining in a union sector is expected to cause wages:

to be higher but employment to be lower in the nonunion sector.