A. I n the United States, unionized workers are paid about _________ percent more than similar nonunion workers.

a. 2

b. 5

c. 15

d. 40

B. I n many European nations, unions

a. are considered cartels in violation of antitrust laws.

b. conspire with firms to keep wages below competitive levels.

c. are social clubs without any economic impact.

d. play a much larger role than they do in the United States.

C. According to the theory of efficiency wages,

a. firms may find it profitable to pay above equilibrium wages.

b. an excess supply of labor puts downward pressure on wages.

c. sectoral shifts are the main source of frictional unemployment.

d. right-to-work laws reduce the bargaining power of unions.

D. When a firm pays an efficiency wage, it may

a. have trouble attracting enough workers.

b. have to monitor its workers more closely.

c. experience declines in worker quality. d. find that its workers quit less frequently