Worksheet 16 Macro - Wages

The XYZ Corporation's collective bargaining agreement indicates that it may hire either union or nonunion workers and that the latter are under no obligation to join the union. This agreement embodies:

an open shop.

Refer to the given data. The marginal revenue product of the second worker is:

$16

In the United States, the rate of unionization is:

lower for managers than for teachers.

Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If this were a monopsonistic labor market, the equilibrium wage rate and level of employment would be:

$5 and 3 respectively.

In 2011, about ____ percent of employed wage and salary workers belonged to unions.

11.8

Refer to the labor market diagrams. The tactics of inclusive unionism are shown in Figure(s):

4 and 5.

Available research suggests that the union wage advantage diminishes the national output by:

>1%

Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?

Discrimination.

In which of the following U.S. industries is the rate of unionization the highest?

Government

If a firm faces an upsloping labor supply curve (and there is no union or minimum wage), its:

MRC curve is also upsloping.

In which of the following U.S. occupations is the rate of unionization the highest?

Protective services.

The individual firm in a purely competitive labor market faces:

a perfectly elastic labor supply curve and a downsloping labor demand curve.

Compensating differences in wages:

are wage differences that compensate for differences in the desirability of jobs.

A monopsonistic employer:

confronts a marginal resource (labor) cost that is greater than the wage rate.

Noncompeting groups of workers are the result of:

differences in the innate and acquired abilities of workers.

(Consider This) The main idea highlighted in the story about artist Pablo Picasso is:

human capital.

Refer to the diagrams and assumptions. If all the workers who lose their jobs in the union sector because of a Wn to Wu union wage increase are reemployed in nonunion sector 2, output in that sector will:

increase by F + G.

Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If an inclusive union was formed and was able to get the monopsonist to agree to a $7 wage rate, then the monopsonist would:

increase employment from 3 to 5 workers.

State right-to-work laws:

make compulsory union membership (for example, a union shop) illegal.

If an exclusive union is successful in restricting the supply of labor, the:

wage rate will rise.