Question 1

Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has

Accepted Answer

A)  decreased to $10.
B)  increased to $15.75.
C)  decreased to $14.29.
D)  increased to $20.E) B) and C)
F) C) and D)

Question 2

In monopsony situations, a minimum wage might increase wage and employment levels.

Accepted Answer

A) True 
 B)False

Question 3

A firm pays the same wage rate to all its workers. At present, 20 workers are employed at $50 per day. Wages are subsequently raised to $55 per day in order to attract an extra worker. Thus, the marginal labor cost per day is

Accepted Answer

A)  $5.
B)  $21.
C)  $55.
D)  $155.E) A) and B)
F) B) and C)

Question 4

Efficiency wages are established at below-equilibrium levels.

Accepted Answer

A) True 
 B)False

Question 5

Suppose the MRP of a firm's 20th worker is $16 and the worker's marginal wage cost is $22. We can say with the most certainty that the firm

Accepted Answer

A)  is hiring labor in a competitive labor market at a wage rate of $22.
B)  is hiring labor in a monopsonistic labor market.
C)  will find it profitable to hire more workers.
D)  will find it profitable to hire fewer workers.E) A) and B)
F) A) and C)

Question 6

A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. How many workers will the profit-maximizing firm hire if the wage rate is $15 per day?

Accepted Answer

A)  3
B)  4
C)  6
D)  5E) All of the above
F) None of the above

Question 7

What is the purpose of occupational licensing? What are the effects of unnecessary or excessive occupational licensing requirements?

Accepted Answer

Occupational licensing was created to pr...

Question 8

The nominal annual wage increases from $25,000 to $27,000, while the price level increases by 6 percent. In this case, the percentage change in the real annual wage is about

Accepted Answer

A)  8 percent.
B)  10 percent.
C)  14 percent.
D)  2 percent.E) A) and D)
F) C) and D)

Question 9

Refer to the given data. We can conclude from the information given that this firm is a

Accepted Answer

A)  pure monopolist.
B)  discriminating monopolist.
C)  pure competitor.
D)  monopolistic competitor.E) A) and B)
F) C) and D)

Question 10

A labor union may engage in a lockout if the collective bargaining process breaks down.

Accepted Answer

A) True 
 B)False

Question 11

A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table.  If the wage rate decreases from $22.50 to $21.50, by how much will the firm expand employment?

Accepted Answer

A)  2 workers
B)  3 workers
C)  0 workers
D)  1 workerE) B) and D)
F) C) and D) D

Question 12

The rate of unionization is substantially higher for protective service workers than for sales workers.

Accepted Answer

A) True 
 B)False

Question 13

A bilateral monopoly case is a situation where two monopolists in two countries are selling competing products in the world market.

Accepted Answer

A) True 
 B)False

Question 14

One reason for the high wage rates in the United States and other advanced economies is the high productivity of labor in these countries.

Accepted Answer

A) True 
 B)False  True

Question 15

According to international comparisons, which of these nations was not in the top 5 for hourly pay in U.S. dollar terms in 2013?

Accepted Answer

A)  Sweden
B)  Germany
C)  Australia
D)  United StatesE) B) and C)
F) None of the above

Question 16

Since the mid-1950s, union membership has declined as a percentage of employed wage and salary workers.

Accepted Answer

A) True 
 B)False  False

Question 17

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

Accepted Answer

A)  $4.
B)  $2.
C)  $8.
D)  $52.E) A) and B)
F) A) and C)

Question 18

There is no evidence that unions are able to increase wage rates above those that the market would otherwise provide.

Accepted Answer

A) True 
 B)False

Question 19

Refer to the given data. At the profit-maximizing level of employment, this firm's total revenue will be

Accepted Answer

A)  $48.
B)  $12.
C)  $36.
D)  $24.E) B) and D)
F) A) and B)

Question 20

What is collective bargaining? What is the goal of collective bargaining?

Accepted Answer

Collective bargaining is the negotiation...

Exam 17: Wage Determination

Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has

Correct AnswerverifiedShow Answer

In monopsony situations, a minimum wage might increase wage and employment levels.

Correct AnswerverifiedShow Answer

A firm pays the same wage rate to all its workers. At present, 20 workers are employed at $50 per day. Wages are subsequently raised to $55 per day in order to attract an extra worker. Thus, the marginal labor cost per day is

Correct AnswerverifiedShow Answer

Efficiency wages are established at below-equilibrium levels.

Correct AnswerverifiedShow Answer

Suppose the MRP of a firm's 20th worker is $16 and the worker's marginal wage cost is $22. We can say with the most certainty that the firm

Correct AnswerverifiedShow Answer

A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. How many workers will the profit-maximizing firm hire if the wage rate is $15 per day?

Correct AnswerverifiedShow Answer

What is the purpose of occupational licensing? What are the effects of unnecessary or excessive occupational licensing requirements?

Correct AnswerverifiedOccupational licensing was created to pr...View AnswerShow Answer

The nominal annual wage increases from $25,000 to $27,000, while the price level increases by 6 percent. In this case, the percentage change in the real annual wage is about

Correct AnswerverifiedShow Answer

Refer to the given data. We can conclude from the information given that this firm is a

Correct AnswerverifiedShow Answer

A labor union may engage in a lockout if the collective bargaining process breaks down.

Correct AnswerverifiedShow Answer

A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table. If the wage rate decreases from $22.50 to $21.50, by how much will the firm expand employment?

Correct AnswerverifiedD

The rate of unionization is substantially higher for protective service workers than for sales workers.

Correct AnswerverifiedShow Answer

A bilateral monopoly case is a situation where two monopolists in two countries are selling competing products in the world market.

Correct AnswerverifiedShow Answer

One reason for the high wage rates in the United States and other advanced economies is the high productivity of labor in these countries.

Correct AnswerverifiedTrue

According to international comparisons, which of these nations was not in the top 5 for hourly pay in U.S. dollar terms in 2013?

Correct AnswerverifiedShow Answer

Since the mid-1950s, union membership has declined as a percentage of employed wage and salary workers.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

There is no evidence that unions are able to increase wage rates above those that the market would otherwise provide.

Correct AnswerverifiedShow Answer

Refer to the given data. At the profit-maximizing level of employment, this firm's total revenue will be

Correct AnswerverifiedShow Answer

What is collective bargaining? What is the goal of collective bargaining?

Correct AnswerverifiedCollective bargaining is the negotiation...View AnswerShow Answer

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Occupational licensing was created to pr...
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D

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True

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False

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Collective bargaining is the negotiation...
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