Question 1

With a union,the total number of workers hired is where

Accepted Answer

A) Employment is lower than at the competitive equilibrium. 
B) The marginal wage is negative. 
C) Employment and wages are both at the maximum possible levels. 
D) Employment could not be increased by reducing the wage rate. 
A) Employment is lower than at the competitive equilibrium. 
B) The marginal wage is negative. 
C) Employment and wages are both at the maximum possible levels. 
D) Employment could not be increased by reducing the wage rate.

Question 2

Over the last 10 years in the United States,the private sector unionization rate has ________ and the public sector unionization rate has ________.

Accepted Answer

A) fallen;fallen 
B) fallen;risen 
C) risen;fallen 
D) risen;risen 
A) fallen;fallen 
B) fallen;risen 
C) risen;fallen 
D) risen;risen

Question 3

The largest labor union in the United States represents approximately

Accepted Answer

A) 10 percent of the labor force. 
B) 5 percent of the labor force. 
C) 15 percent of the labor force. 
D) 1 percent of the labor force. 
A) 10 percent of the labor force. 
B) 5 percent of the labor force. 
C) 15 percent of the labor force. 
D) 1 percent of the labor force.

Question 4

Labor supply can be defined as the

Accepted Answer

A) Total number of people who are employable. 
B) Total number of people in paid employment. 
C) Willingness and ability of people to work specific amounts of time at alternative wage rates in a given period of time,ceteris paribus. 
D) Total number of individuals who are either employed or actively seeking employment. 
A) Total number of people who are employable. 
B) Total number of people in paid employment. 
C) Willingness and ability of people to work specific amounts of time at alternative wage rates in a given period of time,ceteris paribus. 
D) Total number of individuals who are either employed or actively seeking employment.

Question 5

Work rules that are designed to protect jobs and maximize employment at any level of output are thought to lower worker productivity.

Accepted Answer

A) True 
 B)False

Question 6

Suppose a monopsonist must pay $10 per hour to attract 10 workers.If the same monopsonist must raise its wage to $11 per hour to attract the 11th worker,what is its marginal factor cost for labor?

Accepted Answer

A) $121 per hour. 
B) $21 per hour. 
C) $11 per hour. 
D) $10 per hour. 
A) $121 per hour. 
B) $21 per hour. 
C) $11 per hour. 
D) $10 per hour.

Question 7

A monopsonist must pay a higher net wage rate to hire additional workers because as a single

Accepted Answer

A) Seller,it has market power. 
B) Seller,it does not have to compete with other firms for customers. 
C) Buyer in the market,it faces an upward-sloping supply curve for labor. 
D) Buyer in the market,it faces a flat supply curve for labor. 
A) Seller,it has market power. 
B) Seller,it does not have to compete with other firms for customers. 
C) Buyer in the market,it faces an upward-sloping supply curve for labor. 
D) Buyer in the market,it faces a flat supply curve for labor.

Question 8

Union shops never face competition from substitute labor.

Accepted Answer

A) True 
 B)False

Question 9

Unions cannot exert market power without exerting control over the market supply curve for labor.

Accepted Answer

A) True 
 B)False

Question 10

To be successful in changing wage rates and employment conditions,labor unions need to have control over only

Accepted Answer

A) Their own members. 
B) The labor supply decisions of individual workers. 
C) The MRP of employers. 
D) The production decision of employers. 
A) Their own members. 
B) The labor supply decisions of individual workers. 
C) The MRP of employers. 
D) The production decision of employers.

Question 11

If a firm hires 12 workers at $9 per hour each and the 13th worker will be hired only if the wage rate falls to $8 per hour,the marginal wage rate must be

Accepted Answer

A) -$8. 
B) $8. 
C) -$4. 
D) $4. 
A) -$8. 
B) $8. 
C) -$4. 
D) $4.

Question 12

A monopsonist must raise the wage rate if it desires to hire additional workers.

Accepted Answer

A) True 
 B)False

Question 13

The trend in the United States toward the merger of unions is driven by the labor movement's desire to accomplish all of the following except

Accepted Answer

A) Increase representation. 
B) Avoid low-wage workers in service industries. 
C) Gain financial strength. 
D) Enhance their political power. 
A) Increase representation. 
B) Avoid low-wage workers in service industries. 
C) Gain financial strength. 
D) Enhance their political power.

Question 14

From an economic perspective,the efforts of professional football,baseball,and basketball players in the United States to win the right to become free agents was really an effort to

Accepted Answer

A) Raise wages to the level of the players' MRP. 
B) Raise wages to competitive levels. 
C) Reduce the supply of professional players and thus increase wages. 
D) Raise wages above the level of the players' MRP. 
A) Raise wages to the level of the players' MRP. 
B) Raise wages to competitive levels. 
C) Reduce the supply of professional players and thus increase wages. 
D) Raise wages above the level of the players' MRP.

Question 15

Private sector unionization in the United States is currently closest to ________ percent.

Accepted Answer

A) 23.9 
B) 17.6 
C) 6.4 
D) 1.4 
A) 23.9 
B) 17.6 
C) 6.4 
D) 1.4

Question 16

Discuss how unions affect prices indirectly.

Accepted Answer

Unions affect prices indirectly through

Question 17

A union never wants to accept a negative marginal wage.

Accepted Answer

A) True 
 B)False

Question 18

The exercise of union power will tend to

Accepted Answer

A) Reduce the supply of labor available to nonunion industries. 
B) Cause profits to be higher in unionized industries. 
C) Increase the supply of labor available to nonunion industries. 
D) Cause product prices to be lower in unionized industries. 
A) Reduce the supply of labor available to nonunion industries. 
B) Cause profits to be higher in unionized industries. 
C) Increase the supply of labor available to nonunion industries. 
D) Cause product prices to be lower in unionized industries.

Question 19

If the marginal factor cost is less than labor demand,a monopsonist should

Accepted Answer

A) Reduce the wage rate. 
B) Hire additional workers. 
C) Increase the wage rate. 
D) Hire fewer workers. 
A) Reduce the wage rate. 
B) Hire additional workers. 
C) Increase the wage rate. 
D) Hire fewer workers.

Question 20

In the last 10 years,private union membership has

Accepted Answer

A) Decreased,while public union membership has increased. 
B) Increased along with public union membership. 
C) Decreased along with public union membership. 
D) Increased,while public union membership has decreased. 
A) Decreased,while public union membership has increased. 
B) Increased along with public union membership. 
C) Decreased along with public union membership. 
D) Increased,while public union membership has decreased.

Exam 31: Labor Unions

With a union,the total number of workers hired is where

Over the last 10 years in the United States,the private sector unionization rate has ________ and the public sector unionization rate has ________.

The largest labor union in the United States represents approximately

Labor supply can be defined as the

Work rules that are designed to protect jobs and maximize employment at any level of output are thought to lower worker productivity.

Suppose a monopsonist must pay $10 per hour to attract 10 workers.If the same monopsonist must raise its wage to $11 per hour to attract the 11th worker,what is its marginal factor cost for labor?

A monopsonist must pay a higher net wage rate to hire additional workers because as a single

Union shops never face competition from substitute labor.

Unions cannot exert market power without exerting control over the market supply curve for labor.

To be successful in changing wage rates and employment conditions,labor unions need to have control over only

If a firm hires 12 workers at $9 per hour each and the 13th worker will be hired only if the wage rate falls to $8 per hour,the marginal wage rate must be

A monopsonist must raise the wage rate if it desires to hire additional workers.

The trend in the United States toward the merger of unions is driven by the labor movement's desire to accomplish all of the following except

From an economic perspective,the efforts of professional football,baseball,and basketball players in the United States to win the right to become free agents was really an effort to

Private sector unionization in the United States is currently closest to ________ percent.

Discuss how unions affect prices indirectly.

A union never wants to accept a negative marginal wage.

The exercise of union power will tend to

If the marginal factor cost is less than labor demand,a monopsonist should

In the last 10 years,private union membership has

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

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Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

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Over the last 10 years in the United States,the private sector unionization rate has and the public sector unionization rate has .

Suppose a monopsonist must pay $10 per hour to attract 10 workers.If the same monopsonist must raise its wage to $11 per hour to attract the 11^th worker,what is its marginal factor cost for labor?