1 - If the marginal productivity of labor decreases, then

A - the quantity of labor demanded will not be affected.

B - the quantity of labor demanded at every possible wage rate will be less.

C - the quantity of labor demanded at every possible wage rate will be higher.

D - the demand curve for labor will shift upward and to the right.

2 - In a perfectly competitive labor market, the wage rate paid by the individual firm is

A - dependent on the demand for the product.

B - below the equilibrium market wage rate.

C - a function of the tax system.

D - the equilibrium market wage rate.

3- When U.S. computer companies hire workers in India to staff their customer service call centers, they are engaging in

A - labor engagement.

B - unfair trade practices.

C - outsourcing.

D - predatory pricing.

4 - Economic analysis indicates the net long-run effect of outsourcing for the United States is likely to be

A - an increase in the supply of labor.

B - an increased demand for labor due to economic growth.

C - a decreased in the demand for labor in the United States in the short run.

D - a decrease in the supply of labor.

1 - If the marginal revenue product of an input exceeds the marginal factor cost of the input, the firm

A - should hire less of the input.

B - should increase its use of the input.

C - is not on its marginal cost curve.

D - is maximizing profit.

5 -In a perfectly competitive situation, the profit-maximizing hiring situation for all inputs being used is where

A - the MRP of each input is equal to the price of each input.

B - the MRP of each input is greater than the price of each input.

C - the MRP of each input is less than the price of each input.

D - There is no relationship between MRP and the prices of the inputs.

6 - A labor union is likely to seek all of the following EXCEPT

A - increased competitiveness in the labor market.

B - economic improvements for their members.

C - safer working conditions.

D - increased job security for its members.

7 - Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

A - the union must find a way to ration jobs among the excessive number of workers who wish to work at the negotiated wage.

B - employment in the union sector will increase.

C - the union must find a way to make union workers more productive.

D - the union must also negotiate a fringe-benefit package that the membership will like.

8 - Which of the following is NOT a wage or employment strategy that a union would follow?

A - Set a maximum wage rate such that a shortage of workers will result.

B - Set a wage rate that will maximize the income of its members.

C - Set a wage rate such that all workers that want to find a job can find a job.

D - Set a wage rate that will maximize the income of only some of its members.

9 - A union contract requiring elevator operators in a building with automatic elevators is an example of

A - a lockout.

B - a closed shop.

C - a right-to-work requirement.

D - featherbedding.

10 - Evidence in support of the hypothesis that unions increase the productivity of union workers is

A - that unionized firms face lower turnover rates than nonunion firms do.

B - there is an excess supply of labor at the union wage rate.

C - the fact that union wages are greater than nonunion wages.

D - that most contracts are settled without a strike.