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Exam 17: Wage Determination

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Question 31

Multiple Choice

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If the nominal wages of carpenters rose by 5 percent in 2019 and the price level decreased by 3 percent, then the real wages of carpenters

A) decreased by 2 percent.
B) increased by 8 percent.
C) increased by 2 percent.
D) increased by 5 percent.

E) B) and C)
F) A) and B)

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Question 32

Multiple Choice

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Refer to the given data. If the market wage rate is $14, this firm will employ

A) 2 workers.
B) 4 workers.
C) 3 workers.
D) 5 workers.

E) A) and B)
F) B) and C)

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Question 33

Multiple Choice

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The table shows labor demand data on the left and labor supply data on the right. The firm will maximize profits (or minimize losses) by employing

In a purely competitive labor market, a profit-maximizing firm will hire labor up to the point where the marginal resource cost equals the wage rate.

Who belongs to unions? Answer in terms of the types of industries and occupations, and the personal characteristics of workers.

Shirking refers to the behavior of workers who provide less-than-expected effort on the job.

Refer to the given data. If the market wage rate is $8 and the firm hires its profit-maximizing number of workers, the firm's total wage bill (payment) will be

A firm hiring labor in a perfectly competitive labor market faces a

Inclusive unions restrict the number of jobs directly by shifting the labor supply curve to the left; exclusive unions restrict the number of jobs by imposing above-equilibrium wage rates on the employer.

Evaluate the statement: "There is no difference between the labor supply curve for the single competitive firm and the supply curve in a competitive market for labor."

What are the three different union strategies pursued to increase wages?

The labor supply curve facing a purely competitive firm is perfectly inelastic.

Refer to the given data. If the market wage rate is $5 and the firm hires its profit-maximizing number of workers, the firm's total revenue will exceed its total wage payment by

Marginal resource (labor)cost will always exceed the wage rate when the employer is selling its product in an imperfectly competitive market.

If you received a 4 percent increase in your nominal wage and the price level increased by 6 percent, then your real wage has increased by 2 percent.

What is the difference between an exclusive union and an inclusive union?

What is a bilateral monopoly? What is the economic outcome from a bilateral monopoly? Is a bilateral monopoly a bad situation for society?

The individual firm that hires labor under competitive conditions faces a labor supply curve that

The table shows labor demand data on the left and labor supply data on the right. What will be the profit-maximizing selling price of the product?

Union workers have higher rates of job turnover than do nonunion workers.