Chapter 9 Assessment

Chapter Summary

A summary of major ideas in Chapter 9 appears below. See also the Guide to the Essentials of Economics, which provides additional review and test practice of key concepts in Chapter 9.

• Section 1 Labor Market Trends (pp. 211–217)

  The labor force is all nonmilitary people who are employed or unemployed. As America becomes more of a service economy, employers are hiring more college graduates and women. Contingent employment is on the rise. The learning effect and the screening effect help to raise wages for college graduates. Other labor trends include decreasing wages in some jobs and rising costs of employee benefits.

• Section 2 Labor and Wages (pp. 219–226)

  In a competitive labor market, laws of supply and demand determine wages based on how much a worker produces. At equilibrium wage there is neither an excess demand for labor nor an excess supply of labor. Historically, wage rates have been affected by workplace conditions, discrimination, and union featherbedding.

• Section 3 Organized Labor (pp. 228–234)

  Labor unions began in the mid-1800s. Using strikes to gain better wages and working conditions, unions made great gains in the mid-1900s. Right-to-work laws and other anti-union measures have curbed union influence. Unions and management engage in collective bargaining. Some disputes are resolved through mediation or arbitration.

Key Terms

Complete each sentence by choosing the correct answer from the list of terms below. You will not use all of the terms.

• strike
• arbitration
• labor force
• equilibrium wage
• labor union
• contingent employment
• collective bargaining
• learning effect
• screening effect
• glass ceiling

1. In the _____ process, a third party reviews a case and renders a legally binding decision.
2. The _____ is the theory that the completion of college tells employers that a job applicant is reasonably intelligent and hard-working.
3. An organized work stoppage intended to force an employer to address union demands is called a(n) _____.
4. The _____ consists of all nonmilitary people that are employed or unemployed.
5. The _____ is an unofficial, invisible barrier that prevents some women and minorities from advancing to top-level corporate positions in businesses dominated by white men.
6. The wage rate that produces neither a surplus nor a shortage of workers in the labor market is called the _____.
7. The use of temporary and/or part-time workers instead of permanent, full-time employees is known as _____.

Using Graphic Organizers

8. On a separate sheet of paper, copy the web map below. Then fill in the ovals with examples of factors that affect wage rates.

   

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