inclusion leads to higher wages

When a firm exercises monopsony power:
A. the firm increases its profits at the expense of its workers.
B. workers gain but the firm loses.
C. workers, consumers, and owners of the firm are made better off.
D. both the firm and the workers gain.

Question 2
Which statement is true with respect to the two basic ways that unions have of exerting power?
A. Only inclusion leads to higher wages.
B. Only exclusion leads to higher wages.
C. Both inclusion and exclusion lead to higher wages.
D. Neither inclusion nor exclusion leads to higher wages.

Question 3
A monopsony is:
A. the seller of a product for which there are no close substitutes.
B. the buyer of a product for which there are no close substitutes.
C. both the seller and buyer of a product for which there are no close substitutes.
D. neither the seller nor buyer of a product for which there are no close substitutes.

Question 1
Collective bargaining agreements in the United States generally:
A. are negotiated for only a 1-year period.
B. are very detailed and specify wages levels and fringe benefits for a period of 2-3 years.
C. cover wages only.
D. are negotiated for only a 6-month period.

Question 2
In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make

about what happened to your real wages over this period?
A. They rose.
B. They fell.
C. They remained the same.
D. There is not enough information to determine whether they rose, fell, or remained the same.

Question 3
The amount a person earns over and above the amount she/he would be willing to work for is called:
A. marginal resource cost.
B. economic rent.
C. marginal revenue product.
D. profit on human capital.

Question 1
Suppose your economics professor earns an equal annual salary of $40,000. The professor loves teaching and would not quit her job if her pay were reduced to $15,000 per year. Your professor is earning annual economic rent of:
A. $40,000.
B. $25,000.
C. $55,000.
D. $15,000.

Question 2
In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make about what happened to your real wages over this period?
A. They rose.
B. They fell.
C. They remained the same.
D. There is not enough information to determine whether they rose, fell, or remained the same.

Question 3

When a firm exercises monopsony power:
A. the firm increases its profits at the expense of its workers.
B. workers gain but the firm loses.
C. workers, consumers, and owners of the firm are made better off.

D. both the firm and the workers gain.

Question 1
Each of the following is an advantage of forming a conglomerate EXCEPT:
A. tax advantages.
B. forming a big company.
C. diversification.
D. accumulation of power within two or three closely related industries.

Question 2
A key passage of the __________ Act stated that “every contract, combination in form of trust or otherwise, in restraint of commerce among the several states, or with foreign nations, is hereby declared illegal.”
A. Clayton
B. FTC
C. DuPont
D. Sherman

Question 3
The Microsoft case ended with a(n):
A. clear-cut win for the federal government.
B. compromise settlement between Microsoft and the federal government.
C. guilty plea by Microsoft, but no breakup of the company.
D. abandonment of the case by the federal government.

Question 1
In the 1960s, about 80% of the mergers were of the __________ variety.
A. horizontal
B. vertical
C. conglomerate
D. conventional

Question 2
Each of the following industries was deregulated during the last 30 years EXCEPT:
A. the airlines.
B. trucking.
C. banking.
D. radio and TV.

Question 3
A merger of a firm and its supplier is called a __________ merger.
A. vertical
B. horizontal
C. conglomerate
D. direct