Question 1

The unionization rate represents the

Accepted Answer

A) Percentage of the total labor force belonging to unions. 
B) Market power of unions relative to the market power of nonunion labor. 
C) Proportion of industries that are dominated by unions. 
D) Annual percentage growth in the total number of unions. 
A) Percentage of the total labor force belonging to unions. 
B) Market power of unions relative to the market power of nonunion labor. 
C) Proportion of industries that are dominated by unions. 
D) Annual percentage growth in the total number of unions.

Question 2

Unions must worry about the marginal wage because it indicates the

Accepted Answer

A) Wage at which demand and supply intersect. 
B) Opportunity wage available to workers. 
C) Effect on the total wage bill of hiring additional workers. 
D) Effect on the total wage bill of hiring all workers. 
A) Wage at which demand and supply intersect. 
B) Opportunity wage available to workers. 
C) Effect on the total wage bill of hiring additional workers. 
D) Effect on the total wage bill of hiring all workers.

Question 3

If the sellers of labor in a competitive market decided to unionize,ceteris paribus,then wages would

Accepted Answer

A) Rise and employment would fall. 
B) Fall and employment would fall. 
C) Rise and employment would rise. 
D) Fall and employment would rise. 
A) Rise and employment would fall. 
B) Fall and employment would fall. 
C) Rise and employment would rise. 
D) Fall and employment would rise.

Question 4

Which of the following labor markets is classified as a monopsony?

Accepted Answer

A) There are many employers,and each demands the same type of labor. 
B) There are several employers,and each demands the same type of labor. 
C) There are three employers,and each demands the same type of labor. 
D) There is one employer for a specific type of labor. 
A) There are many employers,and each demands the same type of labor. 
B) There are several employers,and each demands the same type of labor. 
C) There are three employers,and each demands the same type of labor. 
D) There is one employer for a specific type of labor.

Question 5

Because firms are willing to hire additional workers at lower wages,the market labor demand curve is

Accepted Answer

A) Vertical. 
B) Perfectly elastic. 
C) Downward-sloping. 
D) Upward-sloping. 
A) Vertical. 
B) Perfectly elastic. 
C) Downward-sloping. 
D) Upward-sloping.

Question 6

Public sector unions now

Accepted Answer

A) Represent a smaller percentage of workers than private sector unions. 
B) Are growing at a smaller rate than private sector unions. 
C) Represent over five times the percentage of workers in private sector unions. 
D) Are illegal in the United States. 
A) Represent a smaller percentage of workers than private sector unions. 
B) Are growing at a smaller rate than private sector unions. 
C) Represent over five times the percentage of workers in private sector unions. 
D) Are illegal in the United States.

Question 7

The unionization rate grew most rapidly in the United States between

Accepted Answer

A) 1950 and 1953. 
B) 1980 and 1988. 
C) 1935 and 1945. 
D) 1880 and 1901. 
A) 1950 and 1953. 
B) 1980 and 1988. 
C) 1935 and 1945. 
D) 1880 and 1901.

Question 8

Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?

Accepted Answer

A) Zero. 
B) 6. 
C) 14. 
D) 22. 
A) Zero. 
B) 6. 
C) 14. 
D) 22.

Question 9

Unions have had an impact on U.S.firms by supporting all of the following types of legislation except

Accepted Answer

A) Civil rights legislation. 
B) Health and education programs. 
C) Minimum wage laws. 
D) National security laws. 
A) Civil rights legislation. 
B) Health and education programs. 
C) Minimum wage laws. 
D) National security laws.

Question 10

Which of the following is an example of an industrial union?

Accepted Answer

A) The International Brotherhood of Electrical Workers. 
B) The Carpenters Union. 
C) The United Auto Workers. 
D) The AFL-CIO. 
A) The International Brotherhood of Electrical Workers. 
B) The Carpenters Union. 
C) The United Auto Workers. 
D) The AFL-CIO.

Question 11

Unlike most monopolies,unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Accepted Answer

A) True 
 B)False

Question 12

Refer to Figure 31.2 for a monopsonist employer.From the monopsonist's standpoint,the optimal wage and employment level would be

Accepted Answer

A) $11 per hour and 50 employees. 
B) $9 per hour and 40 employees. 
C) $7 per hour and 50 employees. 
D) $6 per hour and 40 employees. 
A) $11 per hour and 50 employees. 
B) $9 per hour and 40 employees. 
C) $7 per hour and 50 employees. 
D) $6 per hour and 40 employees.

Question 13

What are the competitive equilibrium wage and employment level in Figure 31.1?

Accepted Answer

A) $8;10 workers. 
B) $5;16 workers. 
C) $4;13 workers. 
D) $11;32 workers. 
A) $8;10 workers. 
B) $5;16 workers. 
C) $4;13 workers. 
D) $11;32 workers.

Question 14

The largest labor unions in the United States are the

Accepted Answer

A) International Brotherhood of Teamsters (Teamsters). 
B) International Union,United Automobile,Aerospace and Agricultural Implement Workers of America (UAW). 
C) Service Employees International Union and the National Education Association (NE
A) . 
D) Walmart employee union. 
A) International Brotherhood of Teamsters (Teamsters). 
B) International Union,United Automobile,Aerospace and Agricultural Implement Workers of America (UAW). 
C) Service Employees International Union and the National Education Association (NE
A) . 
D) Walmart employee union.

Question 15

Table 31.1 $$\begin{array} { | r | c | c | c | } 
\hline \begin{array} { c } 
\text { Wage rate (dollars } \
\text { per hour) }
\end{array} & \begin{array} { c } 
\text { Labor demanded } \
\text { (workers) }
\end{array} & \begin{array} { c } 
\text { Total labor cost } \
\text { (dollars per hour) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Wage (dollars per } \
\text { worker) }
\end{array} \
\hline \$ 26 & 0 & & \text { - } \
\hline 24 & 2 & & \
\hline 18 & 4 & & \
\hline 14 & 6 & & \
\hline 10 & 8 & & \
\hline
\end{array}$$ Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost)and the marginal wage.Which of the following wages,in Table 31.1,would allow the most workers to be hired?

Accepted Answer

A) $10 per hour. 
B) $14 per hour. 
C) $18 per hour. 
D) $22 per hour. 
A) $10 per hour. 
B) $14 per hour. 
C) $18 per hour. 
D) $22 per hour.

Question 16

The current private sector unionization rate in the United States is closest to

Accepted Answer

A) 12.4 percent. 
B) 19.3 percent. 
C) 25.7 percent. 
D) 6.4 percent. 
A) 12.4 percent. 
B) 19.3 percent. 
C) 25.7 percent. 
D) 6.4 percent.

Question 17

Workers who organize themselves along industry lines are represented by

Accepted Answer

A) Skill unions. 
B) Industrial unions. 
C) Manufacturing unions. 
D) Craft unions. 
A) Skill unions. 
B) Industrial unions. 
C) Manufacturing unions. 
D) Craft unions.

Question 18

The effect of union exclusion of nonunion workers is to

Accepted Answer

A) Increase the shortages of nonunion workers. 
B) Reduce the wages of nonunion workers. 
C) Increase the number of jobs for nonunion workers. 
D) Increase the surplus of union workers. 
A) Increase the shortages of nonunion workers. 
B) Reduce the wages of nonunion workers. 
C) Increase the number of jobs for nonunion workers. 
D) Increase the surplus of union workers.

Question 19

In a monopoly labor market,the optimal union wage can be read off the marginal revenue product curve.

Accepted Answer

A) True 
 B)False

Question 20

Productivity is

Accepted Answer

A) The inverse of cost efficiency. 
B) Output per unit of input. 
C) The increment of output produced when one more unit of an input is employed in the production process. 
D) The same as marginal revenue. 
A) The inverse of cost efficiency. 
B) Output per unit of input. 
C) The increment of output produced when one more unit of an input is employed in the production process. 
D) The same as marginal revenue.

Exam 31: Labor Unions

The unionization rate represents the

Unions must worry about the marginal wage because it indicates the

If the sellers of labor in a competitive market decided to unionize,ceteris paribus,then wages would

Which of the following labor markets is classified as a monopsony?

Because firms are willing to hire additional workers at lower wages,the market labor demand curve is

Public sector unions now

The unionization rate grew most rapidly in the United States between

Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?

Unions have had an impact on U.S.firms by supporting all of the following types of legislation except

Which of the following is an example of an industrial union?

Unlike most monopolies,unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Refer to Figure 31.2 for a monopsonist employer.From the monopsonist's standpoint,the optimal wage and employment level would be

What are the competitive equilibrium wage and employment level in Figure 31.1?

The largest labor unions in the United States are the

The current private sector unionization rate in the United States is closest to

Workers who organize themselves along industry lines are represented by

The effect of union exclusion of nonunion workers is to

In a monopoly labor market,the optimal union wage can be read off the marginal revenue product curve.

Productivity is

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

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

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