Ch 7 and Ch 9 test

studies have shown that union members earn an average of roughly __?__ more than similarly qualified nonunion workers.

15 %

Which of the following is an example of a horizontal merger?

AT&T and MCI

Interest rate

Annual interest expressed as a percentage of the amount borrowed or saved

If the cost of machines that assemble toasters falls, the demand for workers who assemble toasters by hand will probably

Be eliminated.

Compared with competing firms, cartels usually

Earn more profit.

A firm that can lower its average cost per unit by selling more is operating with

Excess capacity.

The goal of antitrust activity is to

Prevent exploitation of consumers by monopolies

What law made it legal for union members at competing companies to join forces in an effort to raise wages and improve working conditions?

The Clayton Act

What large industry was deregulated by the federal government in 1978?

The airline industry

Which of the following is true?

There are high barriers to entry in a monopolized market.

Each of the following is true of firms in perfect competition except

They all earn the same profit per item sold. "says They all sell the same products." is correct

Which of the following markets is an example of an oligopoly?

Tobacco

Antitrust laws can benefit both consumers and producers.

True

Antitrust laws try to prevent monopoly in those markets where competition seems desirable.

True

At the equilibrium wage, there is neither an excess quantity supplied of the labor resource nor an excess quantity demanded.

True

Banking is an industry that has experienced deregulation.

True

Barriers to entry in a monopolized market include legal restrictions, economies of scale, and control of an essential resource.

True

Because a monopoly supplies the entire market, the demand curve for a monopolist's output also is the market demand curve.

True

Binding arbitration occurs when a neutral third party evaluates both sides of a dispute and issues a ruling that both sides are required to accept.

True

Collective bargaining is the process by which union representatives negotiate with an employer about wages, employee benefits, and working conditions.

True

Derived demand arises from the demand for the good or service produced by the resource.

True

Federal antitrust officials are able to approve or deny mergers.

True

For the most part, deregulation has increased competition and benefited consumers.

True

Resource suppliers tend to be more willing and able to supply the resource as its price increases.

True

Some jobs pay more because they require a long and expensive training period.

True

Technological improvements often cause firms to be more competitive.

True

The market demand for a particular resource is the sum of demands for that resource in all its different uses.

True

The minimum wage law establishes the smallest amount that an employer can pay a worker for an hour of labor.

True

The monopoly market structure is the opposite of the perfect competition market structure.

True

The more productive a resource is, the more a firm is willing to pay for it.

True

The number of industries considered competitive has increased in the past 40 years.

True

Two companies that produce completely different things can merge.

True

Union membership as a percentage of the workforce has declined since 1955.

True

Unions try to increase wages of their members by reducing the supply of labor and increasing the demand for union labor.

True

Wage differences across labor markets can be attributed to differences in labor demand and labor supply.

True

What do recent statistics reveal about the wages of women and men with apparently equal ability?

Women earn less than men, but the pay gap is narrowing.

If workers are equally trained, those who __?__ are likely to earn the greatest income.

Work in risky jobs

Wage rates differ because of each of the following except differences in

Workers' needs.

Demand for loans curve

a downward-sloping curve showing the negative relationship between the interest rate and the quantity of loans demanded, other things constant

At the present time, about __?__ of all workers belong to a union.

one-tenth

Which of the following best describes the U.S. Postal Service?

Monopoly

Workers who have more education and experience earn more because they are

More productive.

Which of the following has the most number of firms?

Perfect competition

Which of these workers at a manufacturing company would likely earn the most?

A 45 year old manager with a professional degree

An example of a product that could be sold by an undifferentiated oligopoly is

A barrel of oil.

An example of a commodity is

A bushel of wheat.

An oligopoly is comprised of how many firms?

A few

A joining of Ford, Daimler-Chrysler, and General Motors to form a single firm would be an example of

A horizontal merger.

Which of the following pairs are resource complements?

Cab drivers/cabs

The trend toward deregulation was demonstrated by the elimination of the

Civil Aeronautics Board.

Which of the following markets is not likely to be an example of perfect competition?

Consumer products

1. When there is perfect competition, one seller emerges as the primary controller of price as it squeezes out its competitors.

False

A higher minimum wage lowers the opportunity cost of staying in school.

False

As the price of a resource rises, firms are more willing to employ that resource.

False

Because barriers to entry are high, firms in monopolistic competition can't enter or leave the market with ease.

False

Both sides of a labor dispute must accept a mediator's ruling.

False

Deregulation, for the most part, has decreased competition.

False

Firms in an oligopoly are independent; and one firm's price, output, or advertising has no effect on the actions of its rivals.

False

Labor and management both win when a strike occurs.

False

Long-lasting monopolies are common because a profitable monopoly discourages rivals from entering the market.

False

Natural monopolies are not regulated.

False

One reason a resource supply curve slopes upward is that resource owners are less able to supply the resource at a higher price.

False

Regulation, as opposed to deregulation, benefits consumers more.

False

The U.S. Justice Department found Microsoft not guilty of violating antitrust laws.

False

The first labor unions in the United States were industrial unions.

False

The more available a resource is, the more a firm is willing to pay for it.

False

Through a strike, workers join forces to improve their pay and working conditions by negotiating a labor contract with their employers.

False

With mergers and monopolies, the U.S. economy has grown less competitive in the last half century.

False

With resource substitutes, an increase in the cost of one decreases the demand for the other.

False

About half of all union members are

Government workers.

The U.S. economy has

Grown more competitive in the last half century.

__?__ prices will draw resources from __?__ uses.

Higher/lower-valued

What does the demand curve for an individual corn farmer look like?

Horizontal line

How does a right-to-work law affect unions?

It reduces union membership.

Which of the following resulted when Congress passed the Airline Deregulation Act?

Prices of airfares decreased

Technology in network television programming has improved over the past few decades. How has this affected network television stations?

Size of audiences has decreased

The demand curve for a resource

Slopes downward.

capital good

tool, equipment, or other manufactured good used to produce other goods and services; a factor of production