Pre-Test Chap 13 e18 - Pre-Test Chap 13 e18 Student 1 Craft...

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Pre-Test Chap 13 e18 Student: ___________________________________________________________________________ 1. Craft unions typically attempt to increase wage rates for their members by: A. Organizing all of the employees in a factory or industry B. Opposing increases in the minimum wage which benefit nonunion workers C. Supporting regulations and policies which increase the price of complementary resources D. Restricting the supply of skilled workers through worker licensing and training requirements 2. Refer to the above graph. It shows a firm which buys its inputs and sells its output in competitive markets. If labor productivity decreases, the equilibrium level of employment for this firm is expected to be: A. L 0 B. Zero C. Lower than L 0 D. Higher than L 0 3. Critics contend that imposing a minimum wage higher than the equilibrium wage in a competitive industry would: A. Decrease the number of workers employed in that industry B. Decrease the quantity of labor supplied to that industry C. Increase the demand for labor in the industry D. Increase employment in that industry 4. Supporters of the minimum wage contend that it: A. Reduces the profits of firms in the industry B. Reduces employment in the industry C. Critics analyze its impact in an unrealistic context D. Increases labor turnover
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5. Assume that initially your nominal wage was $15 an hour and the price index was 100. If the price level increases to 105, then your: A. Nominal wage has decreased to $12.36 B. Nominal wage has increased to $15.75 C. Real wage has decreased to $14.29 D. Real wage has decreased to $12.36 6. What explanation for wage differentials would best explain why superstar athletes in a professional sport are paid significantly more than regular athletes? A. Noncompeting groups B. Compensating differences C. Market imperfections D. Principal-agent problems 7. Refer to the above graph which shows the supply and demand for unionized manufacturing workers. The initial equilibrium point is point 1. There is an increase in the demand for manufactured goods while at the same time health benefits for unionized manufacturing workers also increase. Which point would represent the new equilibrium? A. 3
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This note was uploaded on 05/23/2010 for the course ECON 101 taught by Professor Keep during the Spring '10 term at Glendale Community College.

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Pre-Test Chap 13 e18 - Pre-Test Chap 13 e18 Student 1 Craft...

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