Question 1

Suppose that a regional health authority is the only employer of nurses,and further,suppose that nurses are not unionized.The 625 currently employed nurses are paid $27 per hour.To attract an additional nurse,the employer must increase the wage to $28 per hour.The marginal cost of this additional worker is

Accepted Answer

A)  $27
B)  $17 500
C)  $28
D)  $653
E)  $17 528F) A) and B)
G) B) and E)

Question 2

If a union succeeds in shifting the labour supply curve to the left,it can achieve wages above the

Accepted Answer

A)  equilibrium level without affecting employment.
B)  equilibrium level and an increase in employment.
C)  competitive level and all workers will gain.
D)  competitive level without a pool of unemployed workers seeking to work at the higher wage.
E)  competitive level but will reduce the level of employment.F) A) and E)
G) D) and E)

Question 3

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
  FIGURE 14- 4
-Suppose that the professional association of dentists reduces entry into their profession by lengthening the required training program.The likely effect is that

Accepted Answer

A)  the supply curve of dentists will shift to the right.
B)  the supply curve of dentists will shift to the left.
C)  there will be an increase in the quantity of dentists supplied.
D)  the demand curve for dentists will shift to the right.
E)  both the demand and supply curves for dentists will shift to the left.F) All of the above
G) A) and C)

Question 4

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market.The labour demand curve is QD = 1000 - 20(w) .The labour supply curve is QS = 400 + 40(w) .Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 (but does not affect the demand curve) .The number of workers employed after unionization is

Accepted Answer

A)  1000.
B)  880.
C)  780.
D)  400.
E)  Not determinable from the information provided.F) C) and D)
G) A) and C)

Question 5

In Canada in 2011,the share of total employment in agriculture was about

Accepted Answer

A)  20%.
B)  50%.
C)  0.2%.
D)  10%
E)  2%.F) C) and D)
G) A) and E)

Question 6

Which of the following statements about minimum- wage laws is most accurate?

Accepted Answer

A)  There is some evidence that minimum- wage laws create a lot of jobs,particularly among youths.
B)  All Canadian provinces have the same minimum wage.
C)  Minimum- wage laws only affect the income of the higher- skilled,lowest- wage workers.
D)  Minimum- wage laws are unfair.
E)  There is some evidence that minimum- wage laws cause additional unemployment,particularly among youths.F) C) and E)
G) C) and D)

Question 7

The purpose of a labour union is to

Accepted Answer

A)  increase employment in its industry.
B)  exploit its labour- market power in the same way a monopolist exploits its market power in labour markets.
C)  exploit its labour- market power in the same way a monopolist exploits its market power in product markets.
D)  decrease employment in its industry.
E)  maintain a minimum level of employment.F) C) and D)
G) A) and C)

Question 8

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

Accepted Answer

A)  A reduction in supply and a wage that is lower than it otherwise would be.
B)  An increase in supply and a wage that is lower than it otherwise would be.
C)  These professions are a relatively small portion of the labour market and so there will be no detectible change in wages.
D)  An increase in supply and a wage that is higher than it otherwise would be.
E)  A reduction in supply and a wage that is higher than it otherwise would be.F) B) and E)
G) B) and D)

Question 9

Some people are concerned that "good" manufacturing jobs are being replaced by "bad" service- sector jobs.Why is this not necessarily a problem?

Accepted Answer

A)  Average real per capita income has continued to rise,despite the rise of the service sector.
B)  The decline in manufacturing employment is partly due to increasing productivity in that sector.
C)  Consumers have an increased demand for services as real income increases.
D)  Productivity increases in the service sector are likely underestimated.
E)  all of the aboveF) A) and B)
G) A) and C)

Question 10

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market.The labour demand curve is QD = 1000 - 20(w) .The labour supply curve is QS = 400 + 40(w) .Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $13 (but does not affect the position of the demand curve) .One result is

Accepted Answer

A)  an increase in employment of 20 workers.
B)  a decrease in employment of 140 workers.
C)  a decrease in employment of 100 workers.
D)  an increase in employment of 60 workers.
E)  a decrease in employment of 60 workers.F) None of the above
G) A) and B)

Question 11

In the 1950s and 1960s,Arvida,Quebec,was basically a one- company town where Alcan was the sole buyer of labour services.This is a good example of

Accepted Answer

A)  monopsony.
B)  union power.
C)  pure monopoly.
D)  oligopoly.
E)  monopolistic competition.F) A) and B)
G) B) and C)

Question 12

The table below shows the labour demand and labour supply schedules in a competitive labour market.   Wage Rate  ($/hour)   Quantity  Demanded  of Labour  (hours/month)   Quantity Supplied  of Labour  (hours/month)  1013005001210001000148001300154001500172001800\begin{array} { | c | c | c | } \hline \begin{array} { c } 	ext { Wage Rate } \	ext { (\$/hour)  }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { Demanded } \	ext { of Labour } \	ext { (hours/month)  }\end{array} & \begin{array} { c } 	ext { Quantity Supplied } \	ext { of Labour } \	ext { (hours/month)  }\end{array} \\hline 10 & 1300 & 500 \\hline 12 & 1000 & 1000 \\hline 14 & 800 & 1300 \\hline 15 & 400 & 1500 \\hline 17 & 200 & 1800 \\hline\end{array} Wage Rate  ($/hour)  ​1012141517​ Quantity  Demanded  of Labour  (hours/month)  ​13001000800400200​ Quantity Supplied  of Labour  (hours/month)  ​5001000130015001800​​  TABLE 14- 1
-Refer to Table 14- 1.In a competitive labour market,a legislated minimum wage imposed at $10 per hour would

Accepted Answer

A)  lead to an employment level lower than the competitive level.
B)  have no effect on the competitive equilibrium level of employment.
C)  lead to an equilibrium wage higher than the competitive wage.
D)  lead to unemployment of 500 hours/month.
E)  lead to over- employment of 500 hours/month. F) A) and B)
G) None of the above

Question 13

Suppose your firm is a monopsonist hiring only one variable input.If you want to maximize profits,you will purchase that variable input up to the point where the

Accepted Answer

A)  cost of the input equals the profit generated by the employment of that input.
B)  demand curve intersects the supply curve of the input.
C)  marginal product of that input equals the price of one unit of the input.
D)  wage rate is the highest.
E)  MRP curve for the input intersects the marginal cost curve for the input.F) A) and C)
G) A) and B)

Question 14

FIGURE 14- 6 
-Suppose market E discriminates against one group of workers and market O does not.Unemployment in market O would result if

Accepted Answer

A)  there is no statutory minimum wage.
B)  the supply curve in market O shifts to the left and wages are slow to adjust.
C)  the demand curve in market O shifts to the right and wages are slow to adjust.
D)  the free- market equilibrium wage in market O is below the legal minimum wage.
E)  some workers are unwilling to work in E- market jobs.F) None of the above
G) A) and B)

Question 15

The table below shows the labour demand and labour supply schedules in a competitive labour market.   Wage Rate  ($/hour)   Quantity  Demanded  of Labour  (hours/month)   Quantity Supplied  of Labour  (hours/month)  1013005001210001000148001300154001500172001800\begin{array} { | c | c | c | } \hline \begin{array} { c } 	ext { Wage Rate } \	ext { (\$/hour)  }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { Demanded } \	ext { of Labour } \	ext { (hours/month)  }\end{array} & \begin{array} { c } 	ext { Quantity Supplied } \	ext { of Labour } \	ext { (hours/month)  }\end{array} \\hline 10 & 1300 & 500 \\hline 12 & 1000 & 1000 \\hline 14 & 800 & 1300 \\hline 15 & 400 & 1500 \\hline 17 & 200 & 1800 \\hline\end{array} Wage Rate  ($/hour)  ​1012141517​ Quantity  Demanded  of Labour  (hours/month)  ​13001000800400200​ Quantity Supplied  of Labour  (hours/month)  ​5001000130015001800​​  TABLE 14- 1
-Investment in human capital can be very costly to the individual,but it can also generate large returns.Canadian census data from 2007 show that average employment income for a university graduate is approximately of the average employment income of a worker with no more than a high school diploma.

Accepted Answer

A)  400%
B)  50%
C)  300%
D)  125%
E)  200% F) A) and E)
G) C) and D)

Question 16

The following statements describe the adverse effects suffered by groups subject to labour- market discrimination.Which of the statements is false?

Accepted Answer

A)  They will be more likely to experience spells of unemployment.
B)  They will receive lower wages on average than other groups.
C)  The discriminatory wage differentials will persist as long as the discrimination exists.
D)  Their human capital will increase.
E)  Their children's ability and willingness to invest in human capital will be less on average than those of children of other groups.F) B) and D)
G) A) and E)

Question 17

FIGURE 14- 5 
-Refer to Figure 14- 5.Suppose this labour market is competitive.If a minimum wage of W4 is then imposed,the quantity of labour supplied would be

Accepted Answer

A)  Q1.
B)  Q2.
C)  Q3.
D)  Q4.
E)  Q5.F) A) and E)
G) A) and B)

Question 18

As a seller of labour services,a labour union is a form of

Accepted Answer

A)  monopsony.
B)  monopolistic competitor.
C)  monopoly.
D)  illegal cartel.
E)  oligopoly.F) B) and C)
G) None of the above

Question 19

Unions currently represent government employees in Canada.

Accepted Answer

A)  approximately half of the
B)  all of the
C)  less than 10% of
D)  less than 30% of
E)  over 70% ofF) D) and E)
G) All of the above

Question 20

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
  FIGURE 14- 4
-Refer to Figure 14- 4.Suppose this labour market is in a monopsonistic equilibrium.Then,suppose the provincial government of British Columbia imposes a minimum wage for employees in this industry of $38 per hour.What will be the effects on wages and employment?

Accepted Answer

A)  wages will rise by $8 per hour and employment will fall by between 0 and 250 units of labour
B)  wages will rise by $3 per hour and employment will fall by 125 units of labour
C)  wages will rise by $8 per hour and employment will remain unchanged
D)  wages will rise by $13 per hour and employment will fall below 750 units of labour
E)  wages will rise by $8 per hour and employment will fall below 750 units of labourF) C) and E)
G) B) and E)

Exam 14: Labour Markets

If a union succeeds in shifting the labour supply curve to the left,it can achieve wages above the

Correct Answer
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Correct Answer
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Correct Answer
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Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

Correct Answer
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Correct Answer
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The following statements describe the adverse effects suffered by groups subject to labour- market discrimination.Which of the statements is false?

Correct Answer
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As a seller of labour services,a labour union is a form of

Correct Answer
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The purpose of a labour union is to

Correct Answer
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Correct Answer
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Which of the following statements about minimum- wage laws is most accurate?

Correct Answer
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In the 1950s and 1960s,Arvida,Quebec,was basically a one- company town where Alcan was the sole buyer of labour services.This is a good example of

Correct Answer
verified

Correct Answer
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FIGURE 14- 5 -Refer to Figure 14- 5.Suppose this labour market is competitive.If a minimum wage of W4 is then imposed,the quantity of labour supplied would be

Correct Answer
verified

Correct Answer
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Correct Answer
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Suppose your firm is a monopsonist hiring only one variable input.If you want to maximize profits,you will purchase that variable input up to the point where the

Correct Answer
verified

FIGURE 14- 6 -Suppose market E discriminates against one group of workers and market O does not.Unemployment in market O would result if

Correct Answer
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Unions currently represent government employees in Canada.

Correct Answer
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In Canada in 2011,the share of total employment in agriculture was about

Correct Answer
verified

Some people are concerned that "good" manufacturing jobs are being replaced by "bad" service- sector jobs.Why is this not necessarily a problem?

Correct Answer
verified

Exam 14: Labour Markets

If a union succeeds in shifting the labour supply curve to the left,it can achieve wages above the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following statements describe the adverse effects suffered by groups subject to labour- market discrimination.Which of the statements is false?

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As a seller of labour services,a labour union is a form of

Correct AnswerverifiedShow Answer

The purpose of a labour union is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about minimum- wage laws is most accurate?

Correct AnswerverifiedShow Answer

In the 1950s and 1960s,Arvida,Quebec,was basically a one- company town where Alcan was the sole buyer of labour services.This is a good example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

FIGURE 14- 5 -Refer to Figure 14- 5.Suppose this labour market is competitive.If a minimum wage of W4 is then imposed,the quantity of labour supplied would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose your firm is a monopsonist hiring only one variable input.If you want to maximize profits,you will purchase that variable input up to the point where the

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FIGURE 14- 6 -Suppose market E discriminates against one group of workers and market O does not.Unemployment in market O would result if

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Unions currently represent government employees in Canada.

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In Canada in 2011,the share of total employment in agriculture was about

Correct AnswerverifiedShow Answer

Some people are concerned that "good" manufacturing jobs are being replaced by "bad" service- sector jobs.Why is this not necessarily a problem?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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