Micro test 3
the decline in unionization can be explained by
- increased global competition - downsizing of major corporations - a relative decline in manufacturing
The largest employer in the United states is
Walmart
exists even when products are virtually identical
brand loyalty
product differentiation occurs when
buyers perceive differences in the products of several companies
workers with a particular skill are represented by
craft unions
The unionization rate in the United States has been
declining for over 40 years
in equilibrium, the monopsonists labor demand will
exceed labor supply
as we work fewer hours and our leisure time increases, the opportunity cost of labor
falls and the marginal utility of income rises
Unlike most monopolies, unions do not attempt to use their market power to raise the equilibrium wage above its competitive level
false
in bilateral monopoly, price and output are determined by the intersection of demand and supply curves
false
the intersection of the marginal prices or wage and marginal factor costs determines the wage in bilateral monopoly
false
NOT a characteristic of monopolistic competition
firms have zero control over price
in a monopolistically competitive market with negative economic profits
firms will exit until economic profits are zero
in monopolistic competition, a firm
has a downward-sloping demand curve
oligopoly and monopolistic competition both
have market power
If the marginal factor cost is less than labor demand, a monopsonist should
hire additional workers
the labor supply curve starts to bend backward once the
income effect exceeds the substitution effect
if the demand for hair gel increases, the effect on the hair gel manufacturing job market will be to
increase the demand for labor and increase equilibrium wages
The exercise of union power will tend to
increase the supply of labor available to nonunion industries
if new firms enter a monopolistically competitive market, the demand curves for the existing firms will shift to the
left and become more price-elastic
A profit- maximizing monopsonist will hire workers at the point where the marginal factor cost curve intersects the
marginal revenue product curve
major difference between monopoly and monopolistic competition is
the number of firms in the market
a craft union is a labor organization that represents people with a particular skill
true
primary objective of unions is to raise the wages of union members
true
the labor supply curve will be negatively sloped if the substitution effect of wages is
weaker than the income effect of wages
Unions may lower real wages in the nonunion sector because
workers who are displaced by higher wages in the unionized sector increase the labor supply in the non union sector
if janella increases her supply of labor by 6 % in response to a 5% increase in the wage rate, her elasticity of labor supply must be
1.2
In the news article titled "Free agents in Sports: a threat to monopsony" states, " individual players were permitted to negotiate with only one team". The reserve clause in player contracts gave franchise owners in the labor market essentially
a monopsony
A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because
of product differentiation and brand loyalty
The wage rate that a monopsonist would find most profitable is the wage
on the labor supply curve corresponding to the level of employment at which that marginal factor cost cure ( for labor) intersects the labor demand curve
The unionization ratio represents the
percentage of the total labor force belonging to unions
if there is an increase in the number of workers who want to work as accountants, there will be a
rightward shift of the labor supply curve
if laurens substitution effects outweigh her income effects, her labor supply curve will
slope upward
the elasticity of labor supply does NOT depend on
the demand for labor
