micro 17

Which of the following might be expected to increase union membership?

decreased imports of manufactured goods

Since 1960, real hourly compensation in the United States has approximately

doubled.

Professional sports leagues, like the NFL and the NBA, are good examples of monopsony because

they are the only employers of professional athletes in their respective sports.

Workers MRP Wage 5 $12 $5 6 13 6 7 14 7 8 15 8 9 16 9 10 17 10 A firm faces the labor productivity and cost schedule in the table. What is the marginal resource cost of the seventh worker?

$13

Units of Labor Wage Rate MRC (of Labor) MRP (of Labor) 1 $8 $8 $12 2 8 8 $10 3 8 8 8 4 8 8 6 5 8 8 4 Refer to the given data. At the profit-maximizing level of employment, this firm's total revenue will be

$30.

Units of Labor Total Output Per Day Price of Good 2 10 $10 3 14 9 4 19 8 5 23 7 6 27 6 7 31 5 A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. What is the marginal revenue product of the fifth worker?

$9

Demand and Supply Labor Data Employment Total Output Product Price Wage Rate 10 108 $1.05$6 11 160 0.95 7 12 210 0.85 8 13 258 0.75 9 Refer to the table. How many units of labor will this firm hire to maximize its profits?

12

Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm's MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Given that she is a price taker when hiring bricklayers, how many bricklayers will she hire if the market equilibrium wage for bricklayers is $18.00 per hour?

8

On average, 50-year-old workers are paid several times more than workers in their teens and twenties. Which of the following options is the most likely explanation for that huge difference in average earnings?

Older workers have more human capital and higher MRPs.

Which statement is correct?

The percentage change in the nominal wage minus the percentage change in the price level equals the percentage change in real wage.

The Overnight Construction Company has just signed a collective bargaining contract in which it agrees that all workers it hires must be union members in good standing at the time they are hired. This provision reflects

a closed shop.

Data on education and earnings reveal

a positive relationship between the two.

Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical. Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in each sector is Wn. If a union is formed in sector 1 and the union increases the wage rate from Wn to Wu, then employment will

decrease by L1L2 in sector 1.

If an industrial union is formed to bargain with a monopsonistic employer, then in this labor market,

employment may either increase or decrease.

A bilateral monopoly situation is one where a

monopolistic seller faces a monopsonistic buyer.

(Consider This) The story about artist Pablo Picasso illustrates the point that

present skills reflect past accumulations of human capital.

Which of the following is not a major common topic of collective bargaining?

product marketing

The market equilibrium wage is currently $12 per hour among hairdressers. At that wage, 17,323 hairdressers are currently employed in the state. The state legislature then sets a minimum wage of $11.50 per hour for hairdressers. If there are no changes to either the demand or supply for hairdressers when that minimum wage is imposed, the number of hairdressers employed in the state will be:

still 17,323.

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.

Suppose the MRP of a firm's 12th worker is $22 and the worker's marginal wage cost is $16. We can say with certainty that the firm

will find it profitable to hire more workers.

The nominal annual wage increases from $20,000 to $21,000, while the price level increases by 7 percent. In this case, the percentage change in the real annual wage is about

−2 percent.