Question 1

​The process by which union members and the firm's management negotiate a contract is called _____.

Accepted Answer

A)  settlement negotiation
B)  collective bargaining
C)  a union contract
D)  collection arbitration
E)  settlement bargaining

Question 2

The figure given below shows a backward-bending labor supply curve for an individual. In the figure below, which of the following is true if the wage rate decreases from $14 to $6 per hour? ​
Figure 12.2
​

Accepted Answer

A)  The income effect dominates the substitution effect.
B)  The substitution effect dominates the income effect.
C)  No labor is supplied.
D)  The income effect equals the substitution effect.
E)  The supply curve is horizontal.

Question 3

​The substitution effect in the labor supply decision refers to:

Accepted Answer

A)  substituting leisure for work as the wage rate rises.
B)  substituting market work for nonmarket work as the wage rate falls.
C)  working more hours as the wage rate falls.
D)  working fewer hours as the wage rate rises.
E)  substituting market work for leisure or nonmarket work as the wage rate rises.

Question 4

Featherbedding refers to union efforts to force employers to hire more workers than demanded at a particular wage.​

Accepted Answer

A) True 
 B)False

Question 5

Craft unions typically attempt to increase wages by _____.​

Accepted Answer

A)  setting a wage floor
B)  reducing labor supply
C)  increasing labor demand
D)  reducing initiation fees
E)  expanding new union memberships

Question 6

​If a union negotiates a wage floor above the market equilibrium, each firm hiring union members faces:

Accepted Answer

A)  a perfectly inelastic supply curve for labor.
B)  a perfectly elastic supply curve for labor.
C)  a perfectly inelastic demand curve for labor.
D)  a perfectly elastic demand curve for labor.
E)  unit elastic demand curve for labor.

Question 7

​If a union collective bargaining results in a surplus of labor in some industries, the resulting:

Accepted Answer

A)  increase in demand for labor in the nonunion sector drives nonunion wages up.
B)  decrease in demand for labor in the nonunion sector drives nonunion wages down.
C)  increase in supply of labor in the nonunion sector drives nonunion wages down.
D)  increase in supply of labor in the nonunion sector drives nonunion wages up.
E)  decrease in supply of labor in the nonunion sector drives nonunion wages up.

Question 8

​Which of the following explains the recent decline in union membership in the United States?

Accepted Answer

A)  Availability of smaller government safety nets
B)  Slower technological changes
C)  The change from a manufacturing to a service-based economy
D)  Increasing market concentration
E)  An increase in female participation in the job market

Question 9

​A college student working in a minimum-wage job has a _____ opportunity cost of _____ than a college dean.

Accepted Answer

A)  lower; market work
B)  lower; leisure
C)  higher; market work
D)  higher; nonmarket work
E)  higher; leisure

Question 10

Featherbedding by unions is an attempt to:

Accepted Answer

A)  increase the demand for union labor.
B)  increase the demand for nonunion labor.
C)  decrease the demand for union labor.
D)  increase the supply of union labor.
E)  increase the supply of nonunion labor.

Question 11

​Two workers are employed in the same job by the same firm. However, they are paid different wage rates. This could be explained by differences in:

Accepted Answer

A)  the income effect.
B)  the price of the firm's output.
C)  their marginal products due to differences in ability.
D)  working conditions at the workplace.
E)  their marginal products due to differences in the risk faced.

Question 12

In order to reduce labor supply, a craft union must be able to:​

Accepted Answer

A)  control the demand of firms.
B)  force all employers in the industry to hire only union members.
C)  set wages in the industry.
D)  agree to wage concessions.
E)  increase union membership.

Question 13

​An impartial observer who listens to both sides in a labor-management dispute and makes suggestions as to how the two sides could compromise is called a(n)  _____.

Accepted Answer

A)  mediator
B)  arbitrator
C)  litigator
D)  scab
E)  judge

Question 14

Unions whose membership is confined to workers with a particular skill are known as _____.​

Accepted Answer

A)  industrial unions
B)  limited unions
C)  regional unions
D)  craft unions
E)  inclusive unions

Question 15

​The market labor supply curve is usually _____ over the relevant range of market wage rates.

Accepted Answer

A)  positively sloped
B)  negatively sloped
C)  backward bending
D)  vertical
E)  horizontal

Question 16

A consumer maximizes utility by allocating time so that the expected marginal utilities of the last unit of time spent in each activity are identical.​

Accepted Answer

A) True 
 B)False

Question 17

People generally view leisure as _____.​

Accepted Answer

A)  an inferior good
B)  a normal good
C)  a source of disutility
D)  being more valuable per unit, the more they have of it
E)  being unrelated to utility maximization

Question 18

Over the realistic range of wages, under which of the following circumstances will Sam be supplying a quantity of labor greater than zero to the labor market?​

Accepted Answer

A)  When he is either unwilling or unable to perform the job
B)  When he has not been hired to do the job
C)  When he is willing and able to perform the job at the going market wage rate
D)  When he is unable to perform the job
E)  When he is unwilling to perform the job

Question 19

​People who earn higher market wages:

Accepted Answer

A)  have a greater net utility associated with nonmarket work.
B)  supply more hours to market work than people with lower wages.
C)  are less likely to perform nonmarket work.
D)  are more likely to view leisure as an inferior good.
E)  experience less disutility associated with market work.

Question 20

If Dian chooses a job with a lower income over one with a higher income, she cannot be maximizing utility.​

Accepted Answer

A) True 
 B)False

Exam 12: Labor Markets and Labor Unions

​The process by which union members and the firm's management negotiate a contract is called _____.

Correct AnswerverifiedShow Answer

If Dian chooses a job with a lower income over one with a higher income, she cannot be maximizing utility.​

Correct AnswerverifiedShow Answer

Featherbedding by unions is an attempt to:

Correct AnswerverifiedShow Answer

​Two workers are employed in the same job by the same firm. However, they are paid different wage rates. This could be explained by differences in:

Correct AnswerverifiedShow Answer

​If a union collective bargaining results in a surplus of labor in some industries, the resulting:

Correct AnswerverifiedShow Answer

​The substitution effect in the labor supply decision refers to:

Correct AnswerverifiedShow Answer

​Which of the following explains the recent decline in union membership in the United States?

Correct AnswerverifiedShow Answer

​The market labor supply curve is usually _____ over the relevant range of market wage rates.

Correct AnswerverifiedShow Answer

Over the realistic range of wages, under which of the following circumstances will Sam be supplying a quantity of labor greater than zero to the labor market?​

Correct AnswerverifiedShow Answer

​A college student working in a minimum-wage job has a _____ opportunity cost of _____ than a college dean.

Correct AnswerverifiedShow Answer

The figure given below shows a backward-bending labor supply curve for an individual. In the figure below, which of the following is true if the wage rate decreases from $14 to $6 per hour? ​ Figure 12.2 ​

Correct AnswerverifiedShow Answer

Unions whose membership is confined to workers with a particular skill are known as _____.​

Correct AnswerverifiedShow Answer

​If a union negotiates a wage floor above the market equilibrium, each firm hiring union members faces:

Correct AnswerverifiedShow Answer

A consumer maximizes utility by allocating time so that the expected marginal utilities of the last unit of time spent in each activity are identical.​

Correct AnswerverifiedShow Answer

​An impartial observer who listens to both sides in a labor-management dispute and makes suggestions as to how the two sides could compromise is called a(n) _____.

Correct AnswerverifiedShow Answer

Craft unions typically attempt to increase wages by _____.​

Correct AnswerverifiedShow Answer

People generally view leisure as _____.​

Correct AnswerverifiedShow Answer

​People who earn higher market wages:

Correct AnswerverifiedShow Answer

Featherbedding refers to union efforts to force employers to hire more workers than demanded at a particular wage.​

Correct AnswerverifiedShow Answer

In order to reduce labor supply, a craft union must be able to:​

Correct AnswerverifiedShow Answer

The process by which union members and the firm's management negotiate a contract is called _____.

Correct Answer
verified

If Dian chooses a job with a lower income over one with a higher income, she cannot be maximizing utility.

Correct Answer
verified

Correct Answer
verified

Two workers are employed in the same job by the same firm. However, they are paid different wage rates. This could be explained by differences in:

Correct Answer
verified

If a union collective bargaining results in a surplus of labor in some industries, the resulting:

Correct Answer
verified

The substitution effect in the labor supply decision refers to:

Correct Answer
verified

Which of the following explains the recent decline in union membership in the United States?

Correct Answer
verified

The market labor supply curve is usually _____ over the relevant range of market wage rates.

Correct Answer
verified

Over the realistic range of wages, under which of the following circumstances will Sam be supplying a quantity of labor greater than zero to the labor market?

Correct Answer
verified

A college student working in a minimum-wage job has a _ opportunity cost of _ than a college dean.

Correct Answer
verified

The figure given below shows a backward-bending labor supply curve for an individual. In the figure below, which of the following is true if the wage rate decreases from $14 to $6 per hour? Figure 12.2

Correct Answer
verified

Unions whose membership is confined to workers with a particular skill are known as _____.

Correct Answer
verified

If a union negotiates a wage floor above the market equilibrium, each firm hiring union members faces:

Correct Answer
verified

A consumer maximizes utility by allocating time so that the expected marginal utilities of the last unit of time spent in each activity are identical.

Correct Answer
verified

An impartial observer who listens to both sides in a labor-management dispute and makes suggestions as to how the two sides could compromise is called a(n) _____.

Correct Answer
verified

Craft unions typically attempt to increase wages by _____.

Correct Answer
verified

People generally view leisure as _____.

Correct Answer
verified

People who earn higher market wages:

Correct Answer
verified

Featherbedding refers to union efforts to force employers to hire more workers than demanded at a particular wage.

Correct Answer
verified

In order to reduce labor supply, a craft union must be able to:

Correct Answer
verified