Question 1

Regarding the categories of unemployment,how does a minimum-wage law compare to firms paying higher-than-equilibrium wages?

Accepted Answer

The answer of Regarding the categories of unemployment,how does a...

Question 2

Which of the following is the most likely result of efficiency wages?

Accepted Answer

The answer of Which of the following is the most...

Question 3

Arnie is the owner of a firm that produces bottled water in Alberta.There are many such firms in the area.Arnie decides that if he pays his workers a wage higher than the going market wage,his profits will increase.Which of the following is a likely explanation for his decision?

Accepted Answer

By paying his workers a higher wage, Arnie is hoping to increase their job satisfaction and reduce turnover, which will save on recruitment and training costs. This will ultimately lead to higher profits for the firm.

Question 4

Suppose that in some country neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,which of the following will most likely happen to shoemakers?

Accepted Answer

The answer of Suppose that in some country neither textile...

Question 5

Which of the following does the theory of efficiency wages explain?

Accepted Answer

The theory of efficiency wages explains why it may be in the best interest of firms to offer wages that are above the equilibrium level. This is because higher wages can increase worker productivity, reduce turnover and shirking, and attract higher-quality workers.

Question 6

Dawn is the CEO of a corporation that hires nonunion labour.According to the theory of efficiency wages,if she decides to pay her workers more than the competitive equilibrium wage,which of the following is most likely to happen?

Accepted Answer

According to the theory of efficiency wages, paying workers more than the competitive equilibrium wage can lead to increased productivity, lower turnover and recruitment costs, and better employee morale. This, in turn, can lead to higher profits for the firm.

Question 7

What industry in the Canadian economy has the highest percentage of unionized workers?

Accepted Answer

The public sector in Canada, which includes government employees like teachers, nurses, and civil servants, has the highest percentage of unionized workers in the Canadian economy. As of 2020, approximately 71% of public sector workers in Canada were unionized, compared to about 13% of private sector workers.

Question 8

Which of the following Canadian provinces has the highest percentage of unionized workers?

Accepted Answer

Newfoundland and Labrador typically have the highest unionization rates among Canadian provinces, often due to the strong presence of unions in industries like fishing, mining, and public services.

Question 9

What was the purpose of Canada's Public Service Staff Relations Act of 1967?

Accepted Answer

The purpose of the Public Service Staff Relations Act of 1967 was to allow federal public service employees the right to representation and collective bargaining. This act enabled federal public service workers to form and join unions and engage in collective bargaining with their employers, improving their working conditions and job security.

Question 10

Where is the unemployment rate more likely higher?

Accepted Answer

Higher EI benefits can create a disincentive for people to find jobs, thus leading to a higher unemployment rate.

Question 11

Regarding the categories of unemployment,which of the following best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

Accepted Answer

The answer of Regarding the categories of unemployment,which of the...

Question 12

Which of the following will an efficient wage most likely do?

Accepted Answer

Efficient wages aim to attract and retain high-quality workers by offering higher wages than market rate. This can increase productivity and quality of work, leading to more profitability for the company. Efficient wages are not meant to reduce unemployment or make unions stronger, but can lead to decreased turnover rates as higher wages incentivize workers to stay at their job.

Question 13

Mary Sue is the newly appointed CEO of a company that manufactures CD drives on an assembly line.Her staff has told her that the output the firm produces,given the number of workers employed,indicates that some workers may be shirking.According to efficiency wage theory,which of the following should she do?

Accepted Answer

According to the efficiency wage theory, paying workers more than the equilibrium wage rate can motivate them to work harder and be more productive. By increasing their wages, Mary Sue may be able to incentivize the workers to stop shirking and increase their efforts on the assembly line. Additionally, paying above the equilibrium wage rate may also help the company attract and retain high-quality workers, further improving productivity.

Question 14

Samantha,the CEO of a corporation operating in Uganda,decides to raise the wages of her workers,even though she faces an excess supply of labour.Which of the following is an expected result from her decision?

Accepted Answer

According to the efficiency wage theory, when wages are increased above the market equilibrium level, workers are motivated to work harder and be more productive. Therefore, increasing wages could result in increased productivity, which would ultimately benefit the corporation. However, raising wages in the face of excess supply of labour is not likely to eliminate the excess supply and may result in decreased profits as well.

Question 15

Which of the following countries has the lowest percentage of unionized workers?

Accepted Answer

The United States has the lowest percentage of unionized workers among these four countries, with only 10.7% of its workforce belonging to a union. Canada has a higher rate of unionization at 31.9%, while Sweden and Denmark have the highest rates at 67% and 68% respectively.

Question 16

What is,approximately,the percentage of unionized public workers in Canada?

Accepted Answer

The percentage of unionized public workers in Canada is approximately 70 percent, reflecting a high level of unionization within the public sector compared to many other countries.

Question 17

According to efficiency wage theory,which of the following is a way to increase employees' work effort?

Accepted Answer

Efficiency wage theory suggests that paying wages above the market equilibrium can increase employees' work effort and productivity. This is because higher wages motivate employees to work harder and be more committed to their jobs. Therefore, increasing wages is a way to increase employees' work effort according to efficiency wage theory. Choice B, increasing the number of supervisors, may increase monitoring and reduce shirking behavior, but it does not address the underlying motivation of employees. Choice C, decreasing wages, may lead to lower morale, higher turnover, and reduced effort and productivity. Choice D, reducing the number of supervisors, may lead to less monitoring and increased shirking behavior.

Question 18

What do the laws governing the activity of labour unions achieve?

Accepted Answer

The laws governing the activity of labour unions mainly achieve the workers' right to representation and collective bargaining. This entails labour unions can represent their members in negotiations with employers regarding terms and conditions of employment. Although some countries allow workers to choose not to join the union, it is not a mandatory requirement in many countries to join a unionized firm. While some laws may limit the activities of unions, it is not primarily the intention of such laws.

Question 19

What is the effect of unions on wages and employment?

Accepted Answer

Unions are known to negotiate higher wages and better benefits for their members, which raises wages above the competitive equilibrium level. However, this can also lead to a decrease in employment in unionized firms as they may become less competitive and have higher costs. There is no clear evidence that unions have a significant effect on the overall level of employment in an economy.

Question 20

Which of the following is a possible effect of unions?

Accepted Answer

The answer of Which of the following is a possible...

Quiz 9: Unemployment and Its Natural Rate