Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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Approximately what percentage of U.S. workers belong to labor unions?
a. | 9 percent | c. | 25 percent | b. | 13 percent | d. | 42 percent |
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2.
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What is collective bargaining?
a. | union and company representatives meeting to negotiate a new labor
contract | b. | an organization of workers representing several different
occupations | c. | an agreement to allow everyone to be part of the labor negotiating
process | d. | a situation in which the rights of labor have been set
aside |
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3.
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How are wages for a particular job determined?
a. | By advertisements in the newspaper or on line. | b. | By the equilibrium
between the supply and demand for workers for that job. | c. | By the amount of
inflation in the economy. | d. | By the Federal Wage and Hour
Department. |
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4.
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For which kinds of discrimination does the EEOC handle complaints?
a. | race only | b. | race and sex only | c. | religion and
nationality only | d. | race, sex, color, religion, or nationality |
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5.
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Which of the following is an example of using physical capital instead of human
capital to get a job done?
a. | furniture made by hand | c. | an automatic teller machine | b. | a server in a
fast-food restaurant | d. | a
licensed practical nurse |
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6.
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According to economic theory, what happens to job opportunities in low-paying
jobs when the minimum wage goes up?
a. | Job opportunities become more interesting. | b. | The jobs available
become easier to get. | c. | The quantity of labor demanded goes
down. | d. | The quantity of labor demanded goes up. |
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7.
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In inflation-adjusted dollars, how have average wages in the United States
changed in the last 20 years?
a. | Wages have gone up significantly. | c. | Wages have varied every few
years. | b. | Wages have gone down significantly. | d. | Wages have stayed the
same. |
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8.
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When did labor unions begin to gain some legal rights in the United
States?
a. | 1900s | c. | 1930s | b. | 1920s | d. | 1950s |
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9.
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Which of the following jobs are expected to grow significantly?
a. | computer-related jobs | c. | police and fire fighters’ jobs | b. | manufacturing
jobs | d. | agricultural
workers’ jobs |
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10.
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Which of the following could be considered company benefits?
a. | overtime payments | b. | weekly wages | c. | the employee’s
payments to Social Security | d. | the employer’s payments to Social
Security |
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11.
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Mark is switching from his job as a data entry clerk in an office to a job in a
steel mill. One reason his wages will increase significantly in his new job is that
a. | the demand for steel mill workers and for data entry clerks is about the
same. | b. | the supply of steel mill workers is high. | c. | it is more dangerous
to work in a steel mill than in an office. | d. | the demand for data entry clerks is
low. |
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12.
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When your grandfather and his friends entered the work force in 1950, they were
likely to have jobs in
a. | factories producing electronics. | b. | agriculture. | c. | the service
sector. | d. | companies such as Standard Oil or Carnegie Steel. |
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13.
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Tracy, a recent college graduate who earned straight “A’s” as
a history major, is applying for a job as a legal assistant. Although she does not have a background
in law, she hopes to land the job because of the
a. | learning effect. | b. | trend toward having several different jobs
during one’s career. | c. | trend toward contingent
employment. | d. | screening effect. |
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14.
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Jon is deciding between a job with Company A that pays $500 a week and a job
with Company B that pays $550 a week. He decides to take the job with Company A, whose lower
compensation is offset by its
a. | large number of information management jobs. | b. | higher
earnings. | c. | contributions to Social Security. | d. | benefits such as health insurance and stock
options. |
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15.
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Current labor market trends include
a. | an increase in the number of people not counted in employment
statistics. | b. | an increase in demand for low-skilled American labor. | c. | an increase in
service jobs accompanied by a decrease in manufacturing jobs. | d. | all of the
above. |
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16.
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The equilibrium wage for doctors is high because the
a. | demand for doctors equals the supply. | b. | supply of doctors is relatively low and the
demand is relatively high. | c. | demand for doctors tends to be lower relative
to supply. | d. | supply of doctors is relatively high and the demand is relatively
low. |
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17.
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You live in a community with many teenagers, and you work during the summer
bagging groceries for a low hourly wage. How might living in a community with fewer teenagers looking
for grocery bagging jobs affect your hourly wage?
a. | Your wages would probably be higher because the supply of baggers would be
higher. | b. | Your wages would probably be lower because the supply of baggers would be
higher. | c. | Your wages would probably be higher because demand for baggers would be
higher. | d. | Your wages would probably be lower because demand for baggers would be
higher. |
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18.
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The label in your jeans says that they were made in a Latin American country.
This is probably because the jeans manufacturing company wanted to locate its plant
a. | closer to raw materials. | b. | where labor was plentiful and therefore
cheaper. | c. | in a warmer climate. | d. | in a region with less
technology. |
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19.
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Emily has been waiting for a promotion to a management position for almost five
years. When she notices that men fill most of the higher-level jobs in her company, she suspects that
her company has
a. | low productivity. | c. | minimum wage laws. | b. | too much skilled labor. | d. | a glass
ceiling. |
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20.
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All of the following help explain why carpenters usually earn more than
dishwashers EXCEPT
a. | a greater demand for carpenters than for dishwashers. | b. | a carpenter is a
skilled worker, while a dishwasher is a semi-skilled worker. | c. | a greater supply of
carpenters than dishwashers. | d. | a greater danger of on-the-job injury for
carpenters than for dishwashers. |
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21.
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Labor unions arose largely in response to the
a. | dangerous working conditions and long hours of factory jobs in the
1800s. | b. | practice of featherbedding in the railroad industry. | c. | goal of many firms
to hire and retain the most highly skilled workers. | d. | 1938 Fair Labor Standards Act, which banned
child labor. |
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22.
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The strength of labor unions has declined in recent years because
a. | the number of white collar jobs is increasing. | b. | the number of blue
collar jobs is decreasing. | c. | some manufacturers have relocated to countries
where labor is cheaper or to the American South. | d. | all of the
above |
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23.
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Your cousin tells you that his trucking company has resorted to arbitration with
the trucker’s union. This means that
a. | strikebreakers will be called in to perform key tasks. | b. | a neutral third
party is reviewing the dispute and will impose a legally binding decision. | c. | the trucker’s
union is on strike. | d. | the company will call in a mediator if
arbitration fails. |
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24.
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In your community there are enough lawncare workers to fill all the lawncare
jobs available. There are also no unemployed lawncare workers. You can assume that the wage paid to
lawncare workers is
a. | in equilibrium. | c. | too low. | b. | too high. | d. | in excess of
demand. |
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25.
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Suppose the cost of having your teeth filled rises in your area. The result will
likely be
a. | a decrease in the equilibrium wage paid to dentists in your area. | b. | no change in the
number of dental students in your area. | c. | an increase in the number of dental students in
your area. | d. | a decrease in the number of dental students in your
area. |
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Matching
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Identifying Key Terms
Match each term with the correct
statement below. a. | white-collar worker | f. | right-to-work
law | b. | unskilled labor | g. | productivity | c. | learning effect | h. | equilibrium wage | d. | labor
union | i. | glass
ceiling | e. | semiskilled labor | j. | collective bargaining |
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26.
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a measure that bans mandatory union membership
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27.
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the wage rate that gives neither an excess supply of workers nor an excess
demand for workers
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28.
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an unofficial, invisible barrier that prevents women and minorities from
advancing in businesses dominated by white men
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29.
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labor that requires minimal specialized skills and education
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30.
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the theory that education increases productivity and results in higher
wages
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31.
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an organization of workers that tries to improve working conditions, wages, and
benefits for its members
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32.
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the value of a worker's output
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33.
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someone in a professional or clerical job who usually earns a salary
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Identifying Key Terms
Match each term with the correct
statement below. a. | blue-collar worker | f. | equilibrium
wage | b. | white-collar worker | g. | skilled labor | c. | productivity | h. | featherbedding | d. | strike | i. | arbitration | e. | screening effect | j. | contingent
employment |
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34.
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an organized work stoppage intended to force an employer to address union
demands
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35.
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workers who require specialized training and skills
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36.
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the wage rate that gives neither an excess supply of workers nor an excess
demand for workers
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37.
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a settlement technique in which a third party reviews the case and makes a
decision that is legally binding for both sides
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38.
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temporary or part-time employment
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39.
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the theory that the completion of college indicates to employers that a job
applicant is intelligent and hard-working
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40.
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the value of a worker's output
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41.
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the practice of negotiating labor contracts that keep unnecessary workers on a
company’s payroll
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