Unit 8 - Microeconomics

What type of market exists when multiple firms are hiring individual workers?

• Monopsony

• Unionized market

• Competitive market

• Monopoly

What does the downward sloping demand curve in a labor market represent?

• Increasing labor costs

• Decreasing demand for labor

• Marginal benefit to a firm of hiring an additional worker

• Decreasing worker productivity

In a competitive labor market, what determines the equilibrium wage?

• Employer preferences

• Quantity of labor demanded equals quantity supplied

• Union negotiations

• Government regulations

What represents the marginal social cost in a competitive labor market?

• The demand curve

• The supply curve

• The quantity of labor

• The equilibrium wage

What does the supply curve in a competitive labor market represent?

• Government intervention

• Marginal social cost

• Union influence

• Marginal social benefit

How can a union influence a labor market?

• By setting the minimum wage

• All of the above

• By controlling the number of workers hired

• By increasing the demand for labor

What outcome results from a union acting as a monopoly seller in the labor market?

• Decreased wages for workers

• Increased employment levels

• Wage set by the union

• Lower productivity

What is the primary objective of a labor union?

• To negotiate better wages and conditions for its members

• To maximize profits for firms

• To increase the demand for labor

• To decrease the supply of labor

In a union-dominated labor market, what might the union try to increase besides wages?

• The number of employers

• Productivity of workers

• The supply of labor

• Government regulations

What is the result of a labor market where a union restricts the supply of labor?

• Increased wages due to restricted supply

• Decreased wages due to surplus labor

• Increased competition among workers

• No change in employment levels