Question 1

Given: MRP = marginal revenue product; MRC = marginal resource cost; W = wage rate.A firm that sells its product in a purely competitive market, but is a monopsonist in its labor market, would hire the quantity of labor where

Accepted Answer

A)  MRP = MRC = W.
B)  MRP > MRC = W.
C)  MRP > MRC > W.
D)  MRP = MRC > W.E) B) and D)
F) B) and C)

Question 2

Occupational licensing has much the same effect as

Accepted Answer

A)  inclusive unionism.
B)  exclusive unionism.
C)  bilateral monopoly.
D)  monopsony.E) B) and C)
F) A) and D)

Question 3

Occupational licensing

Accepted Answer

A)  functions essentially the same as inclusive unionism.
B)  attracts large numbers of workers and therefore depresses wages.
C)  often restricts occupational entry and raises the incomes of license holders.
D)  has been declared illegal in the majority of states.E) C) and D)
F) B) and D)

Question 4

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

Accepted Answer

A)  movement of labor from lower-wage to higher-wage jobs
B)  readily available information about job opportunities and pay
C)  principal-agent problems
D)  discriminationE) B) and C)
F) A) and B)

Question 5

If a firm is hiring a certain type of labor under purely competitive conditions,

Accepted Answer

A)  its labor demand curve will be perfectly elastic at the market-determined wage rate.
B)  the labor supply curve will lie above the marginal labor cost curve.
C)  the labor supply and marginal labor (resource)  cost curves will coincide and be upsloping.
D)  the labor supply and marginal labor (resource)  cost curves will coincide and be perfectly elastic.E) B) and C)
F) None of the above

Question 6

The minimum wage in the U.S.is

Accepted Answer

A)  set at the federal level, and all states abide by that level.
B)  set at the federal level, but many states set their own minimums that are higher than the federal level.
C)  set at the federal level, but many states set their own minimums that are lower than the federal level.
D)  set at the state level, not by the federal government.Accessibility: Keyboard NavigationE) A) and B)
F) A) and C)

Question 7

(Last Word)  Regardless of the motives or public benefits of occupational licensing, the primary effect it has on labor markets is to

Accepted Answer

A)  limit or reduce the demand for labor in an industry.
B)  increase the demand for labor in an industry.
C)  limit or reduce the supply of labor in an industry.
D)  increase the supply of labor in an industry.E) All of the above
F) A) and C)

Question 8

If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as

Accepted Answer

A)  a cartel.
B)  countervailing power.
C)  a bilateral monopoly.
D)  an internal labor market.E) A) and B)
F) A) and C)

Question 9

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

Accepted Answer

A)  transportation
B)  mining
C)  manufacturing
D)  financeE) None of the above
F) C) and D)

Question 10

If the nominal wage rises by 4 percent and the price level rises by 7 percent, the real wage will

Accepted Answer

A)  be unaffected.
B)  rise by 3 percent.
C)  fall by 3 percent.
D)  rise by 11 percent.E) A) and D)
F) All of the above

Question 11

A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.

Accepted Answer

A) True 
 B)False

Question 12

Firms that pay efficiency wages tend to have higher worker turnover.

Accepted Answer

A) True 
 B)False

Question 13

Strict occupational licensing requirements are favored by a(n)

Accepted Answer

A)  demand-enhancing union.
B)  craft union.
C)  inclusive union.
D)  industrial union.E) C) and D)
F) A) and D)

Question 14

Discrimination that results in minorities being paid less than whites for identical work would be an example of which explanation for wage differentials?

Accepted Answer

A)  noncompeting groups
B)  compensating differences
C)  market imperfections
D)  principal-agent problemsE) A) and B)
F) All of the above

Question 15

Wage differentials may result from all the following except

Accepted Answer

A)  differences in the nonmonetary aspects of various occupations.
B)  differences in the education and skills of workers.
C)  geographic and sociological immobility of workers.
D)  the tendency of qualified workers to move from lower pay jobs to higher pay jobs.E) B) and C)
F) A) and D)

Question 16

Suppose the MRP of a firm's 12th worker is $22 and the worker's marginal wage cost is $16.We can say with certainty that the firm

Accepted Answer

A)  is hiring labor in a competitive labor market at a wage rate of $16.
B)  is hiring labor in a monopsonistic labor market.
C)  will find it profitable to hire fewer workers.
D)  will find it profitable to hire more workers.E) B) and C)
F) A) and B)

Exam 17: Wage Determination

Occupational licensing

Correct Answer
verified

Given: MRP = marginal revenue product; MRC = marginal resource cost; W = wage rate.A firm that sells its product in a purely competitive market, but is a monopsonist in its labor market, would hire the quantity of labor where

Correct Answer
verified

A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.

Correct Answer
verified

If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as

Correct Answer
verified

Suppose the MRP of a firm's 12th worker is $22 and the worker's marginal wage cost is $16.We can say with certainty that the firm

Correct Answer
verified

If a firm is hiring a certain type of labor under purely competitive conditions,

Correct Answer
verified

Firms that pay efficiency wages tend to have higher worker turnover.

Correct Answer
verified

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

Correct Answer
verified

Strict occupational licensing requirements are favored by a(n)

Correct Answer
verified

Discrimination that results in minorities being paid less than whites for identical work would be an example of which explanation for wage differentials?

Correct Answer
verified

The minimum wage in the U.S.is

Correct Answer
verified

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

Correct Answer
verified

Occupational licensing has much the same effect as

Correct Answer
verified

(Last Word) Regardless of the motives or public benefits of occupational licensing, the primary effect it has on labor markets is to

Correct Answer
verified

Wage differentials may result from all the following except

Correct Answer
verified

If the nominal wage rises by 4 percent and the price level rises by 7 percent, the real wage will

Correct Answer
verified

Exam 17: Wage Determination

Occupational licensing

Correct AnswerverifiedShow Answer

Given: MRP = marginal revenue product; MRC = marginal resource cost; W = wage rate.A firm that sells its product in a purely competitive market, but is a monopsonist in its labor market, would hire the quantity of labor where

Correct AnswerverifiedShow Answer

A monopsonist faces an upsloping supply curve of labor, but it could face a horizontal demand curve for its product in the output market.

Correct AnswerverifiedShow Answer

If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as

Correct AnswerverifiedShow Answer

Suppose the MRP of a firm's 12th worker is $22 and the worker's marginal wage cost is $16.We can say with certainty that the firm

Correct AnswerverifiedShow Answer

If a firm is hiring a certain type of labor under purely competitive conditions,

Correct AnswerverifiedShow Answer

Firms that pay efficiency wages tend to have higher worker turnover.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strict occupational licensing requirements are favored by a(n)

Correct AnswerverifiedShow Answer

Discrimination that results in minorities being paid less than whites for identical work would be an example of which explanation for wage differentials?

Correct AnswerverifiedShow Answer

The minimum wage in the U.S.is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Occupational licensing has much the same effect as

Correct AnswerverifiedShow Answer

(Last Word) Regardless of the motives or public benefits of occupational licensing, the primary effect it has on labor markets is to

Correct AnswerverifiedShow Answer

Wage differentials may result from all the following except

Correct AnswerverifiedShow Answer

If the nominal wage rises by 4 percent and the price level rises by 7 percent, the real wage will

Correct AnswerverifiedShow Answer

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