Question : 61) Refer to Figure 14-4. The wage paid by this : 1384290

61) Refer to Figure 14-4. The wage paid by this monopsonistic firm will be ________ and employment will be ________.

A) below $25 per hour; below 750 units of labour

B) between $25 and $35 per hour; between 750 and 1000 units of labour

C) $30 per hour; 1000 units of labour

D) $25 per hour; 750 units of labour

E) $35 per hour; 750 units of labour

62) Refer to Figure 14-4. Compared to the outcome in a competitive labour market, the wage and employment outcome in this town’s monopsonistic labour market are as follows:

A) wages are lower by $5 per hour and employment is lower by 250 units of labour.

B) wages and employment are both the same as the competitive outcome.

C) wages are higher by $10 per hour and employment is lower by 250 units of labour.

D) wages are lower by $10 per hour and employment is the same as the competitive outcome.

E) wages are the same as the competitive outcome and employment is higher by 250 units of labour.

63) Refer to Figure 14-4. Suppose this labour market is in a monopsonistic equilibrium. Then, suppose the workers form a union and negotiate a higher wage with the firm. In this case the wage will be ________ and the employment will be ________.

A) above $35 per hour; less than 750 units of labour

B) between $25 and $35 per hour; between 750 and 1000 units of labour

C) above $25 per hour; above or below 750 units of labour, depending on the negotiated wage

D) $30 per hour; 1000 units of labour

E) $35 per hour; 750 units of labour

64) Refer to Figure 14-4. Suppose the workers in this town form a union to negotiate the wage rate with the firm. Economists refer to this situation as

A) a monopoly.

B) a unionized monopoly.

C) a competitive labour market.

D) a monopolistic labour market.

E) a bilateral monopoly.

65) 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 $30 per hour. What will be the effects on wages and employment?

A) wages will fall by $5 per hour and employment will increase by 250 units of labour

B) wages will not change and employment will increase by 250 units of labour

C) wages will rise by $5 per hour and employment will increase by 250 units of labour

D) wages will not change and employment will change by between 0 and 250 units of labour

E) wages will not change and employment will not change

66) 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?

A) wages will rise by $8 per hour and employment will fall below 750 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 by between 0 and 250 units of labour

67) 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 = 1000 – 20(w). The labour supply curve is = 400 + 40(w). What is the equilibrium level of employment?

A) 20

B) 40

C) 400

D) 800

E) 1000

68) 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 = 1000 – 20(w). The labour supply curve is = 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

A) 400.

B) 780.

C) 880.

D) 1000.

E) Not determinable from the information provided.

69) 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 = 1000 – 20(w). The labour supply curve is = 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 who wish to work at the new wage is

A) 400.

B) 440.

C) 780.

D) 840.

E) 1000.

70) 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 = 1000 – 20(w). The labour supply curve is = 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). One result is

A) an increase in employment of 20 workers.

B) an increase in employment of 40 workers.

C) a decrease in employment of 20 workers.

D) a decrease in employment of 40 workers.

E) a decrease in employment of 60 workers.