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