Chapter 30



Chapter 30

Labor’s Progress

Since World War II

General Questions

1. Key features of the American labor market in the postwar period include all of the following except

a. the growth of service sector employment.

b. increased labor force participation rate of women with young children.

c. steadily increasing union membership.

d. the erosion of discriminatory barriers for women and minority members.

2. During the postwar period, the portion of total employment declined in the ______ sector.

a. agricultural

b. manufacturing

c. mining

d. construction

e. all of the above

3. In 1999, the percent of total employment in the manufacturing, mining, and construction sector equaled

a. less than 20 percent.

b. 30 percent.

c. 40 percent.

d. 60 percent.

4. According to the text, the growth of service sector employment in the United States has contributed to

a. higher unemployment rates in the postwar period.

b. a slowdown in the growth of real wages during the postwar period.

c. reduced economic stability in the postwar period.

d. an increase in the power and membership of unions.

e. all of the above.

5. In 1999, the labor force participation rate of married women equaled

a. about 10 percent.

b. about 25 percent.

c. just over 60 percent.

d. more than 80 percent.

6. Between 1960 and 1999, the labor force participation rate increased for each of the following groups except

a. married women.

b. married men.

c. single women.

d. single men.

7. According to the text, which of the following factors contributed to the increased labor force participation rate of women during the postwar period?

a. rising real wages

b. an increase in the years of schooling completed by women

c. declining fertility rates

d. the growth of the service sector

e. all of the above

8. In 1999, women in most occupations earned ________ of what males in the same occupation earned.

a. less than 30 percent

b. about 50 percent

c. at least 70 percent

d. about 90 percent

9. All of the following served to reduce labor market discrimination against women and minorities except

a. marriage bars.

b. Title VII of the Civil Rights Act.

c. Johnson’s Office of Federal Contract Compliance Program.

d. the Equal Pay Act of 1963.

10. Which of the following statements correctly characterizes fertility rates in the postwar period?

a. The birth rate rose steadily beginning during the Great Depression and continuing until 1950.

b. The birth rate peaked in the late 1950s, then began a steep decline reaching very low rates in the 1970s.

c. The birth rate has fallen steadily since 1940 due to the increased labor force participation of women.

d. During the postwar period, the birth rate has tended to rise during recessions and fall during periods of economic growth.

11. Relative to the white median family income, since 1980 African-American median family income has ________ and Hispanic median family income has __________.

a. risen slightly; also risen

b. fallen; also fallen

c. risen slightly, fallen

d. fallen; risen slightly

12. By 1964, nearly all blacks outside the South were covered by laws that allowed the government to issue cease and desist orders against discriminating firms. According to recent research by William Collins, these laws

a. were successful in improving the wages and working conditions of all African-Americans.

b. were successful in improving the wages and working conditions of only Southern African-Americans.

c. led to lower wages and deteriorating working conditions for African-Americans.

d. had some success in improving the wages and working conditions of African-American women.

13. According to research by Robert Margo, the “separate but equal” provision of Plessy v. Fegusson

a. resulted in African-American schools that were comparable to white schools.

b. resulted in African-American schools that were preferable to white schools in the South.

c. did not seriously hamper the labor market experience of African-Americans.

d. led to the creation of African-American schools that were systematically underfunded.

14. New immigration laws championed by the Kennedy and Johnson administrations

a. established a quota system based on ethnic background.

b. allowed for unlimited immigration.

c. placed a high priority on uniting families.

d. led to reduced immigration rates in the 1960s and 1970s.

e. all of the above

15. In the postwar period, the rate of immigration to the United States has

a. continuously risen.

b. had periods of increase and decrease.

c. tended to fall.

d. remained relatively stable.

16. All of the following have played a role in reducing union strength since 1970 except

a. rising service sector employment.

b. foreign industrial competition.

c. the Supreme Court’s decision to apply antitrust laws to union organization efforts.

d. “right-to-work” laws.

17. Which of the following statements correctly characterizes the trend in real wages since 1960?

a. The real product wage kept pace with labor productivity, but the real consumption wage was fairly stagnant.

b. The real consumption wage kept pace with labor productivity, but the real product wage fell.

c. Labor productivity fell, leading to declines in both the real product wage and the real consumption wage.

d. Both the real consumption wage and the real product wage remained stable over the last 40 years.

Economic Insights

1. According to economic theory, the real wage should

a. be greater than the price of the product produced.

b. equal the marginal physical product of labor.

c. be less than the marginal product of capital.

d. decline as productivity rises.

2. Using a Cobb-Douglas production function and assuming the share of labor used in production remains constant, it can be shown that

a. real wages will increase in tandem with the price of capital.

b. a stable relationship will exist between the average product of labor and the marginal product of labor.

c. real wages will decrease as the average product of labor increases.

d. real wages and output are inversely related.

Economic Analysis

1. During the postwar period, changing patterns of consumer demand led to changes in the distribution of jobs in the U.S. economy. In particular, the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services, such as medical care and insurance.

a. less than

b. greater than

c. equal to

2. During the postwar period, increased real wages for women led to an increase in the labor force participation rate for women. This implies that, for women,

a. the substitution effect of a wage increase is greater than the income effect.

b. the substitution effect of a wage increase is less than the income effect.

c. the substitution effect of a wage increase equals the income effect.

d. wage increases do not have an income effect.

3. Suppose that wages are higher in one geographic region (Region 1) of a country than in another geographic region (Region 2). Given free migration of workers,

a. wages in the two regions will become even more divergent.

b. wages in Region 1 will rise.

c. wages in Region 2 will rise.

d. employment in Region 2 will rise.

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