Question : 31) Refer to Figure 14-1.  Suppose the employers in the : 1384287

31) Refer to Figure 14-1.  Suppose the employers in the fishers labour market begin to discriminate against male workers, and we move to a new equilibrium in each market.  In the absence of any government intervention in these markets, what forces might we expect to see over time?

1) All female workers will migrate to the fishers labour market due to the higher wage.

2) The discriminatory wage differential will tend to be eliminated by the pursuit of profit.

3) Some firm owners in the fishing labour market will find it profitable to hire high-skill males, thus reducing the wage differential.

A) 1 only

B) 2 only

C) 3 only

D) 1 and 2

E) 2 and 3

32) If there is only a single buyer in the labour market, that buyer is called

A) a monopolist.

B) a monopsonist.

C) an oligopolist.

D) an oligopsonist.

E) a single-product firm.

33) As a seller of labour services, a labour union is a form of

A) monopoly.

B) monopsony.

C) oligopoly.

D) monopolistic competitor.

E) illegal cartel.

34) A labour union can most easily raise the wages received by its members by

A) increasing the demand for the product.

B) decreasing the supply of labour from its members.

C) raising employment.

D) increasing the demand for labour.

E) improving productivity.

35) In the 1950s and 1960s, Arvida, Quebec, was basically a one-company town where Alcan was the sole buyer of labour services. This is a good example of

A) pure monopoly.

B) monopolistic competition.

C) oligopoly.

D) monopsony.

E) union power.

36) Suppose a labour union enters a competitive labour market and is successful in raising wages above the competitive equilibrium level. In this situation,

A) each firm in the industry will face a horizontal supply curve for labour at the union wage, up to the maximum quantity of labour that is prepared to work at that wage.

B) those workers already employed will earn a lower wage than before.

C) employment in the industry will surely increase.

D) the market supply curve for labour will be upward sloping over its entire range.

E) the number of firms in the industry will increase and the demand for labour curve will shift to the right, causing a subsequent increase in the wage.

37) Suppose that a professional association strengthened the limits to entry into their profession and at the same time lengthened its required apprenticeship program. The likely effect would be that

A) the supply curve for labour would shift to the left.

B) the supply curve for labour would shift to the right.

C) both the demand and supply curves for labour would shift to the left.

D) the demand curve for labour would shift to the right.

E) there would be an increase in the quantity of labour supplied.

38) Certain professions limit the number of students who are eligible to enroll in their programs in university – engineering, architecture, dentistry, and law, for example. Other things being equal, what is one predicted effect of such restrictions?

A) increased wages across all segments of the labour market

B) decreased wages across all segments of the labour market

C) decreased wages in the labour market outside of these professions

D) increased wages in the labour market outside of these professions

E) there will be no effect on any wages

39) Certain professions limit the number of students who are eligible to enroll in their programs in university – engineering, architecture, dentistry, and law, for example. What is the predicted effect of such a policy in each of these professions?

A) An increase in supply and a wage that is lower than it otherwise would be.

B) A reduction in supply and a wage that is lower than it otherwise would be.

C) An increase in supply and a wage that is higher than it otherwise would be.

D) A reduction in supply and a wage that is higher than it otherwise would be.

E) These professions are a relatively small portion of the labour market and so there will be no detectible change in wages.

40) To a monopsonist in a labour market, the average cost curve of labour

A) lies above the supply curve of labour.

B) lies below the supply curve of labour.

C) is the supply curve of labour, which lies below the marginal cost curve for labour.

D) is the marginal cost curve of labour when the supply curve is upward sloping.

E) coincides with the marginal cost curve of labour only below the profit-maximizing wage rate.