 |
| 1 | |
Which of the following best exemplifies the creation of human capital? |
| | A) | Ford Motor Company increases its wages in an attempt to hire better quality workers |
| | B) | A carpenter buys a new and improved set of tools |
| | C) | A nurse attends a continuing education seminar |
| | D) | A homemaker reenters the labor force following the entry of her last child into school |
|
|
|
| 2 | |
Use the following data for the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273090/384259/quiz26b_2.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"> (8.0K)</a>]]>
Refer to the table. The first three columns contain data on the firm's labor productivity and product demand, while the last two columns constitute the firm's labor supply schedule. The data suggest this firm: |
| | A) | sells its output in a purely competitive market |
| | B) | is a monopsonist |
| | C) | faces a perfectly elastic labor supply curve |
| | D) | obtains its labor in a purely competitive labor market |
|
|
|
| 3 | |
Use the following data for the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273090/384259/quiz26b_3.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"> (8.0K)</a>]]>
Refer to the table. The first three columns contain data on the firm's labor productivity and product demand, while the last two columns constitute the firm's labor supply schedule. If the firm maximizes profits, what will be the selling price of the product? |
| | A) | $6 |
| | B) | $7 |
| | C) | $8 |
| | D) | $9 |
|
|
|
| 4 | |
Use the following diagram of a monopsonist to answer the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273090/384259/quiz26b_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"> (6.0K)</a>]]>
Refer to the diagram. If an inclusive union were to bargain with this employer: |
| | A) | the wage could not increase above $B |
| | B) | employment would fall to F |
| | C) | the wage would rise to $C |
| | D) | employment may increase to as much as G |
|
|
|
| 5 | |
A nonunion monopsonist pays a wage that is: |
| | A) | equal to MRC but less than MRP |
| | B) | equal to MRP but less than MRC |
| | C) | less than MRP but greater than MRC |
| | D) | less than both MRP and MRC |
|
|
|
| 6 | |
Because employers tend to provide more on-the-job training to more educated workers: |
| | A) | more educated workers tend to retire at earlier ages |
| | B) | investment in formal education is reduced |
| | C) | earnings of highly educated workers rise more rapidly than those of less-educated workers |
| | D) | human capital investment declines with age |
|
|
|
| 7 | |
Suppose a large employer hires 80% of the labor force in a small Tennessee coal mining town. Virtually all of these workers belong to the United Mine Workers union. Economists would describe this market as: |
| | A) | bilateral monopoly |
| | B) | dual monopsony |
| | C) | segregated oligopoly |
| | D) | discriminating monopoly |
|
|
|
| 8 | |
The fundamental trade-off faced by unions is that an increase in the wage often results in: |
| | A) | increased inflation |
| | B) | lower employment of union labor |
| | C) | reduced future bargaining power |
| | D) | reductions in the demand for their employer's product or service |
|
|
|
| 9 | |
For a monopsonist, marginal resource cost: |
| | A) | is constant and equal to the market wage |
| | B) | is less than marginal revenue product at the optimum employment level |
| | C) | is the difference between marginal revenue product and the wage rate |
| | D) | equals the wage rate paid to the last worker plus the wage increases paid to all other workers |
|
|
|
| 10 | |
Suppose all workers are identical, but there are fewer prospects for advancement at X than at Y. In all other aspects, the firms offer the same job characteristics. We would expect: |
| | A) | starting wages at X to exceed those at Y |
| | B) | starting wages at Y to exceed those at X |
| | C) | wages of similarly aged workers will always be less at X than at Y |
| | D) | no difference in wages at X and Y |
|
|
.