 |
| 1 | |
A possible explanation for wage differentials is that the workforce is comprised of noncompeting groups, which means that: |
| | A) | employers discriminate against certain groups of workers |
| | B) | workers are geographically immobile |
| | C) | workers are compensated for differences in job characteristics |
| | D) | workers in one group do not qualify for occupations held by workers in other groups |
|
|
|
| 2 | |
If a firm is a price taker in the labor market: |
| | A) | it is also a price taker in the product market |
| | B) | marginal resource cost is equal to the wage rate |
| | C) | marginal cost is equal to product price |
| | D) | the firm's labor supply curve is upward sloping |
|
|
|
| 3 | |
Consider a single firm hiring labor from a purely competitive labor market. If the supply of labor increases in the market, the firm's labor: |
| | A) | demand will increase and it will hire more workers |
| | B) | demand will decrease and it will hire fewer workers |
| | C) | supply will shift downward and it will hire more workers |
| | D) | supply will shift upwards and it will hire fewer workers |
|
|
|
| 4 | |
Use the following monopsonist's labor supply schedule to answer the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1113273090/384259/quiz26c_4.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>]]>
Refer to the schedule. The monopsonist's marginal resource cost of the 7th worker is: |
| | A) | $13 |
| | B) | $19 |
| | C) | $25 |
| | D) | $34 |
|
|
|
| 5 | |
Use the following data to answer the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1113273090/384259/quiz26c_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (10.0K)</a>]]>
Refer to the table, in which the first two columns constitute the firm's supply of labor and the last three columns contain productivity and product demand data. This firm is: |
| | A) | both a monopsonist and a monopolist |
| | B) | a monopsonist selling its output in a purely competitive market |
| | C) | a monopolist hiring its labor from a purely competitive market |
| | D) | hiring its labor and selling its output in purely competitive markets |
|
|
|
| 6 | |
Use the following data to answer the next question.
<![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1113273090/384259/quiz26c_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (10.0K)</a>]]>
Refer to the table, in which the first two columns constitute the firm's supply of labor and the last three columns contain productivity and product demand data. The profit maximizing wage rate for this firm is: |
| | A) | $10 |
| | B) | $11 |
| | C) | $12 |
| | D) | $13 |
|
|
|
| 7 | |
A union could increase the wages and employment of its workers by successfully lobbying government to: |
| | A) | raise tariffs on goods and services complementary to those produced by the union |
| | B) | raise taxes on inputs that are complementary to the union |
| | C) | subsidize the production of goods and services complementary to those produced by the union |
| | D) | increase the licensing requirements of those who wish to join the union |
|
|
|
| 8 | |
Which two models are most similar in their effects on labor markets? |
| | A) | bilateral monopoly and exclusive unionism |
| | B) | occupational licensure and exclusive unionism |
| | C) | oligopoly and inclusive unionism |
| | D) | monopsony and inclusive unionism |
|
|
|
| 9 | |
Under what circumstances might an increase in the minimum wage increase employment in a low-wage market? |
| | A) | The firm has substantial monopsony power |
| | B) | The firm has substantial monopoly power |
| | C) | Substitute resources are widely available |
| | D) | Labor and product markets are purely competitive |
|
|
|
| 10 | |
Which best exemplifies the principal-agent problem as it arises in the employer-employee relationship? |
| | A) | Only the most educated workers are selected to receive on-the-job training |
| | B) | To obtain frequent flier miles, a worker books his next business trip on United Airlines, even though Southwest Airlines would cost his employer less money |
| | C) | A firm negotiates with the union to cut wages in response to falling product demand |
| | D) | A worker enrolls in her firm's employee stock ownership plan as a way to boost her annual compensation |
|
|
.