Micro Chapter 11

If Tamara is given a $3-per-hour pay increase, and in response she decides to work more hours, then:

Tamara's labor supply curve is upward sloping.

Gary Becker's theory of economic discrimination argues that:

employers that discriminate against women will lose profit opportunities.

In the graph, the income effect is shown by segment:

bc

If wages increase at a 5% rate and the quantity demanded of labor decreases 10%, then the elasticity of demand for labor is:

2

According to the segmented labor market view, unions restrict the labor supply to increase wages. As labor migrates to nonunion markets, nonunion wage rates fall. Which of the following actions would reduce the incentive for firms to substitute nonunion workers for union members?

increasing the minimum wage in the nonunion markets

What types of industries have been outsourced from the United States because of international trade?

industries that require a large amount of labor

In recent years, the United States has produced a growing share of:

intangible services.

Derived demand suggests that

labor demand is derived from demand for the product it produces.

One of reasons that competition may fail to eliminate gender wage discrimination is:

lack of mobility.

If the price of diesel fuel increases, the MRP curve for truck drivers will:

shift to the left.

A right-to-work law is a:

state law making a union shop illegal.

When the individual labor supply curve is positively sloped, the _____________ effect dominates and higher wages lead to ____________ hours worked.

substitution; more

In a competitive labor market, if a new manufacturing plant seeks to build its labor force, it is assumed that:

the quantity of workers available is greater than the quantity of workers that are sought.

The act that makes it unlawful to refuse to hire a person based on their race, color, religion, sex, or national origin is the:

Civil Rights Act of 1964.

Which is TRUE about public- and private-employee unions?

Only private-employee unions can call strikes, and public-employee unions tend to contribute less for their health insurance premiums.

Robotic manufacturing has made labor demand for factory workers:

more elastic.

Factory jobs are no longer plentiful in the United States. This is due to all of the following, EXCEPT:

more foreign direct investment into the United States.

What percentage of families with small children are two-earner households?

more than 50%