chapter 17
Critics of the minimum wage argue that as an antipoverty device, it is "poorly targeted." By this they mean that
many who benefit from the minimum wage are teenagers or not poor.
"Player drafts" of professional athletes
promote monopsony in the hiring of professional athletes.
Long-run real wages in the United States have
risen because growth in the demand for labor has exceeded growth in the supply of labor.
A craft union attempts to increase wage rates by
shifting the labor supply curve to the left.
A monopsonist's wage cost in hiring an additional worker is the
worker's wage rate plus the wage increases paid to all workers already employed.
If a firm faces an upsloping labor supply curve (and there is no union or minimum wage), its
MRC curve is also upsloping.
If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as
a bilateral monopoly.
Data on education and earnings reveal
a positive relationship between the two
Marginal resource cost refers to the
amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.
Compensating differences in wages pay workers for
differences in the nonmonetary characteristics of jobs
Increases in the productivity of labor result partly from
improvements in technology.
Marginal revenue product (MRP) of labor refers to the
increase in total revenue resulting from hiring one more unit of labor.
If the nominal wages of carpenters rose by 5 percent in 2013 and the price level increased by 3 percent, then the real wages of carpenters
increased by 2 percent.
Inclusive unionism is practiced mostly by
industrial unions.
According to some supporters of the minimum wage, it has very small or even nonexistent negative employment effects because
it reduces turnover among minimum-wage workers, prompts employers to use them more efficiently, and thus raises their average productivity.
Which of the following tactics is most associated with the demand-enhancement union model?
lobbying for increases in public expenditures on the product it is producing
The economic term for a firm that is the sole buyer in a market is
monopsonist.
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.