Ch 14 micro

c. W2

34. An industrial union could maximize employment by negotiating a wage rate of: refer to actual quiz A. W4. B. W3. C. W2. D. W1.

b. has a constant marginal factor cost of $5.

13. Refer to the diagrams. The firm: A. has a principal-agent problem. B. has a constant marginal factor cost of $5. C. has a marginal factor cost which exceeds the wage rate for each worker. D. will fail to maximize profits if it hires 5 workers.

c.decreasing the supply of labour.

27. Craft unions have typically been most effective in raising wage rates by: A. increasing the supply of labour. B. increasing the demand for labour. C. decreasing the supply of labour. D. decreasing the demand for labour.

a.pulled down the real wages of unskilled workers - and therefore the average real wages of all workers - in Canada.

6. The "globalization of production" may have: A. pulled down the real wages of unskilled workers - and therefore the average real wages of all workers - in Canada. B. increased the demand for Canadian unskilled workers and increased their real wages. C. reduced employer interest in pay-for-performance schemes. D. caused real wages in Canada to rise by unusually rapid rates in the past two decades.

b. total earnings of labour.

9. The graph below represents the supply and demand for labour in a perfectly competitive market. The area 0abc represents: A. total revenue of the firm. B. total earnings of labour. C. marginal revenue product. D. marginal labour cost.

c. industrial unions

33. Inclusive unionism is practiced mostly by: A. professional and semi-professional employees. B. small unions comprised of skilled workers, such as the bricklayers. C. industrial unions. D. craft unions.

d.the price paid per unit of labour services.

1. The wage rate is: A. the total revenue minus the total cost of the firm. B. the marginal revenue minus the marginal cost of the firm. C. the price paid per unit of capital goods. D. the price paid per unit of labour services.

c.is a "wage taker."

10. The firm: A. is a monopsonist in the hire of labour. B. must be selling its product in an imperfectly competitive market. C. is a "wage taker." D. must pay a higher marginal factor cost for each successive worker.

b.is 0wbc.

11. The firm's total wage cost: A. is 0abc. B. is 0wbc. C. is wab. D. cannot be determined

c. is wab.

12. Refer to the diagrams. The amount available to pay to non-labour resources: A. is 0abc. B. is 0wbc. C. is wab. D. cannot be determined.

c. faces an upward sloping labour supply curve

14. The critical feature of a monopsonistic labour market is that the employer: A. has a perfectly elastic demand curve for labour. B. can hire any number of workers it chooses at the "going" wage rate. C. faces an upward sloping labour supply curve. D. faces a perfectly inelastic labour supply curve.

a. lies above the supply curve of labour.

15. When the supply curve of labour is upward sloping, the marginal cost curve of labour facing the monopsonist: A. lies above the supply curve of labour. B. is the supply curve of labour that it faces. C. lies below and parallel to the supply curve of labour. D. lies above and parallel to the supply curve of labour.

c. the higher wage which is needed to attract additional workers must also be paid to all workers already employed.

16. The MFC curve lies the labour supply curve because: A. any number of workers can be hired at the "going" equilibrium wage rate. B. the firm must lower product price to increase its sales. C. the higher wage which is needed to attract additional workers must also be paid to all workers already employed. D. the relationship between wage rates and the profit-maximizing amount of labour to employ is inverse.

c. 3

17. Refer to the below labour market diagrams. A monopsonistic labour market is represented by Figure: Refer diagram from quiz A. 5. B. 4. C. 3. D. 2.

c. b and g

18. If this labour market is perfectly competitive, the wage rate and level of employment respectively will be: Refer diagram from quiz A. D and E. B. C and E. C. B and G. D. B and F.

b.prices of goods and services rose less rapidly than nominal-wage rates.

2. Real wages would rise if the: A. prices of goods and services rose more rapidly than nominal-wage rates. B. prices of goods and services rose less rapidly than nominal-wage rates. C. prices of goods and services and wage rates both rose. D. prices of goods and services and wage rates both fell.

b. 12

20. In the table below, assume a monopsonist has the marginal-revenue-product schedule for a particular type of labour given in columns 1 and 2 and that the supply schedule for labour is that given in columns 1 and 3. refer to table from quiz What is the marginal labour cost of the fourth worker? A. $10 B. $12 C. $14 D. $16

c.would be $7 and 5 respectively.

21. Refer to the graph where D is the labour demand curve, S is the labour supply curve, and MFC is the marginal factor (labour) cost curve. If this were a perfectly competitive labour market, the equilibrium wage rate and level of employment: refer to graph from the table A. would be $5 and 3 respectively. B. would be $6 and 4 respectively. C. would be $7 and 5 respectively. D. would be $8 and 3 respectively.

b. b

22. The level of employment in the labour market shown below will be: refer to the graph A. A. B. B. C. C. D. D.

c. monopsony

23. The labour market for teachers in a small, isolated community that has one school district would be best described as a(n): A. natural monopoly. B. bilateral monopoly. C. monopsony. D. oligopsony.

b.hospitals may possess some degree of monopsony power.

24. Empirical studies suggest that, other things equal, the smaller the number of hospitals in a city, the lower are nurses' wages. This is evidence that: A. the labour markets of nurses are perfectly competitive. B. hospitals may possess some degree of monopsony power. C. the minimum wage does not apply to nurses. D. labour unions have been ineffective in increasing the wages of nurses.

c.an increase in tariffs on products competing with those produced by relevant union workers.

25. A shift in union labour demand from D1 to D 2 in the diagram below might be the result of: refer to graph A. a refusal by union members to buy the product they are producing. B. an increase in tariffs on products competing with those produced by relevant union workers. C. increases in the prices of complementary inputs. D. a strike (work stoppage) by the union.

b. organizes workers who have similar skills or jobs in an industry.

26. A craft union: A. creates a bilateral monopoly of unskilled and skilled workers in an industry. B. organizes workers who have similar skills or jobs in an industry. C. is most concerned with increasing the supply for workers. D. is most effective in a perfectly competitive industry.

b. shifting the labour supply curve to the left.

28. A craft union attempts to increase wage rates by: A. equating the MRP and the MFC curves. B. shifting the labour supply curve to the left. C. shifting the labour supply curve to the right. D. shifting the MRP curve to the right.

c.were similar to those of craft unions.

29. Historically, the labour market practices of the Canadian Medical Association, an association representing medical doctors: A. reduced the demand for physicians' services. B. were similar to those of industrial unions. C. were similar to those of craft unions. D. attempted to reduce the prices of substitute inputs.

c.rises more rapidly than the general price level.

3. The real wage will rise if the nominal wage: A. falls more rapidly than the general price level. B. increases at the same rate as labour productivity. C. rises more rapidly than the general price level. D. rise lessrapidly than the general price level.

a.exclusive unionism.

30. The plumbers union is a good example of: A. exclusive unionism. B. countervailing power. C. how unions can simultaneously increase wage rates and employment by increasing the demand for labour. D. inclusive unionism.

a.decreasing the supply of labour.

31. Exclusive unionism attempts to increase wage rates by: A. decreasing the supply of labour. B. setting a minimum or "standard" wage above the competitive level. C. increasing the supply of labour. D. increasing the demand for labour through productivity increases.

d. 1

32. The tactics of exclusive unionism are portrayed in Figure: refer to actual quiz for graph A. 4. B. 3. C. 2. D. 1.

35. a

35. In a labour market characterized by bilateral monopoly the wage rate will: A. be logically indeterminate. B. be established at the level desired by the union. C. be established at the level desired by the employer. D. always be established at the competitive level.

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

4. Which statement is correct? A. The percentage change in the nominal wage plus the percentage change in the price level equals the percentage change in the real wage. B. The percentage change in the real wage minus the percentage change in the price level equals the percentage change in the nominal wage. C. The percentage change in the price level minus the percentage change in the nominal wage equals the percentage change in the real wage. D. The percentage change in the nominal wage minus the percentage change in the price level equals the percentage change in real wage.

b. relatively high, but not as high as in some other industrially advanced nations.

5. Real wages in Canada are: A. the highest in the world. B. relatively high, but not as high as in some other industrially advanced nations. C. much higher than output per worker. D. higher than nominal wages.

b. supply curve for a single employer will shift upward.

7. If the supply of labour in a perfectly competitive labour market decreases, the labour: A. supply curve for a single employer will shift downward. B. supply curve for a single employer will shift upward. C. demand curve for a single employer will shift upward. D. demand curve for a single employer will shift downward.

a. higher wages will be needed to attract workers from other occupations.

8. The labour supply curve for a particular occupation is upward sloping because: A. higher wages will be needed to attract workers from other occupations. B. lower wages will be needed to increase employment. C. higher wages will enable some workers to afford more leisure. D. the labour demand curve is downward sloping.

b. 1.60

Use the factor demand data shown on the left and the factor supply data on the right in answering the following question: refer to table from actual quiz What will be the selling price of the product? A. $1.40 B. $1.60 C. $1.80 D. $2.00