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| 1 | |
Use the following data to answer the next question.
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Refer to the table. Based on the information given, this firm is a: |
| | A) | pure competitor |
| | B) | pure monopolist |
| | C) | discriminating monopolist |
| | D) | oligopolist |
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| 2 | |
Many economists do not support an increase in the minimum wage, arguing that such an increase would likely: |
| | A) | reduce the demand for skilled labor |
| | B) | create a labor shortage |
| | C) | increase the size of the government's deficit |
| | D) | increase unemployment of low-wage workers |
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| 3 | |
Differences in education lead to wage differentials arising from: |
| | A) | the demand side of labor markets only |
| | B) | the supply side of labor markets only |
| | C) | both the demand side and supply side of labor markets |
| | D) | neither the demand side nor the supply side of labor markets |
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| 4 | |
In which of the following situation is the resulting change in employment ambiguous? |
| | A) | An inclusive union successfully negotiates an increase in the wage rate with several employers in the same industry |
| | B) | An exclusive union successfully restricts the supply of labor |
| | C) | An inclusive union is formed to bargain with a monopsonistic employer |
| | D) | An inclusive union successfully lobbies the government to decrease the price of a complementary input |
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| 5 | |
Which of the following would most likely attempt to raise wages by restricting the supply of labor? |
| | A) | The United Mine Workers |
| | B) | The American Federation of State, County, and Municipal Workers |
| | C) | The International Brotherhood of Electrical Workers |
| | D) | The Teamsters |
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| 6 | |
A firm may choose to pay its employees an annual bonus based on team output in order to: |
| | A) | overcome the principal-agent problem |
| | B) | increase worker turnover |
| | C) | reduce the opportunity cost of shirking |
| | D) | shift their labor demand curve to the left |
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| 7 | |
A firm can hire 10 workers at a wage rate of $12 per hour but must pay $13 to all of its employees to attract an 11th worker. The marginal wage cost of the 11th worker is: |
| | A) | $13 |
| | B) | $20 |
| | C) | $23 |
| | D) | $143 |
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| 8 | |
A firm hiring from a purely competitive labor market sells its output for $5 and pays a wage of $12. Its marginal resource cost is: |
| | A) | $5 |
| | B) | $7 |
| | C) | $12 |
| | D) | $60 |
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| 9 | |
Jalicia receives $3 for each garment she sews. This payment is a(n): |
| | A) | royalty |
| | B) | bonus |
| | C) | commission |
| | D) | piece rate |
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| 10 | |
Answer the next question on the basis of the following diagram:
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Refer to the diagram. The competitive wage and monopsony wage, respectively, are: |
| | A) | W2 and W1 |
| | B) | W1 and W4 |
| | C) | W1 and W5 |
| | D) | W2 and W4 |
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