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Unformatted text preview: CHAPTER 26 Wage Determination Topic Question numbers ___________________________________________________________________________________________________ 1. Real and nominal wage rates; trends 1-11 2. Purely competitive labor markets 12-46 3. Monopsony and imperfectly competitive labor markets 47-85 4. Union models and licensure 86-122 5. Minimum wage 123-130 6. Wage differentials; human capital 131-148 7. Pay and performance 149-162 Consider This 163-164 Last Word 165-167 True-False 168-184 ___________________________________________________________________________________________________ Multiple Choice Questions Real and nominal wage rates; trends Econ: 507 LO: 26-1 Micro: 273 Topic: 1 Type: Fact 1. Real wages in the United States in the long run: A) show no discernible relationship to output per worker. B) have increased at about the same rate as increases in output per worker. C) have increased slower than increases in output per worker. D) have increased faster than increases in output per worker. Ans: B Econ: 507 LO: 26-1 Micro: 273 Topic: 1 Type: Fact 2. The long-run trend of real wages: A) cannot be determined from available data on nominal wages and the price level. B) has been downward because the price level has risen faster than nominal wages. C) has been upward. D) has been downward because labor's share of the domestic income has fallen. Ans: C Econ: 506 LO: 26-1 Micro: 272 Topic: 1 Type: Application of Concept 3. If the nominal wages of carpenters rose by 5 percent in 2000 and the price level increased by 3 percent, then the real wages of carpenters: A) decreased by 2 percent. C) increased by 3 percent. B) increased by 2 percent. D) increased by 8 percent. Ans: B Econ: 507 LO: 26-1 Micro: 273 Topic: 1 Type: Application of Concept 4. Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of: A) total output. B) stock of capital. C) output per worker. D) international trade. Ans: C Econ: 507 LO: 26-1 Micro: 273 Topic: 1 Type: Application of Concept 5. Increases in the productivity of labor result partly from: A) the law of diminishing returns. C) reductions in wage rates. B) improvements in technology. D) increases in the quantity of labor. Ans: B Econ: 506 LO: 26-1 Micro: 272 Topic: 1 Type: Fact 6. Real wages in the United States are: A) the highest in the world. B) relatively high, but not as high as in some other industrially advanced nations. C) much higher than output per worker. D) higher than nominal wages. Ans: B Econ: 506 LO: 26-1 Micro: 272 Status: New Topic: 1 Type: Fact 7. According to international comparisons, which nation had the highest real wages in U.S. dollar terms in 2004?...
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- Spring '08