Question 1

The unionization rate in the United States has been

Accepted Answer

A) Increasing for the last 5 years. 
B) Declining for approximately 30 years. 
C) Declining for approximately 15 years. 
D) Declining for over 40 years. 
A) Increasing for the last 5 years. 
B) Declining for approximately 30 years. 
C) Declining for approximately 15 years. 
D) Declining for over 40 years.

Question 2

The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.

Accepted Answer

A) True 
 B)False

Question 3

If a union achieves above-equilibrium wages for its membership,the wages of nonunion workers will generally suffer.

Accepted Answer

A) True 
 B)False

Question 4

A market that experiences both strikes and lockouts at different times is most likely characterized by

Accepted Answer

A) Monopoly. 
B) Monopsony. 
C) Bilateral monopoly. 
D) Monopolistic competition. 
A) Monopoly. 
B) Monopsony. 
C) Bilateral monopoly. 
D) Monopolistic competition.

Question 5

Refer to Figure 31.3 for a competitive labor market.A shift in labor supply from S1 to S2 could be caused by:

Accepted Answer

A) An increase in the wage rate. 
B) The unionization of another,separate labor market. 
C) An increase in the price of the product being produced. 
D) An increase in the price of machinery used in the production of the product. 
A) An increase in the wage rate. 
B) The unionization of another,separate labor market. 
C) An increase in the price of the product being produced. 
D) An increase in the price of machinery used in the production of the product.

Question 6

Unions may lower real wages in the nonunion sector because

Accepted Answer

A) Nonunion firms have difficulty attracting skilled workers away from the unions. 
B) Nonunion firms adjust wages to avoid the threat of unionization. 
C) Workers who are displaced by higher wages in the unionized sector increase the labor supply in the nonunion sector. 
D) Union firms can easily hire nonunion workers for a lower wage. 
A) Nonunion firms have difficulty attracting skilled workers away from the unions. 
B) Nonunion firms adjust wages to avoid the threat of unionization. 
C) Workers who are displaced by higher wages in the unionized sector increase the labor supply in the nonunion sector. 
D) Union firms can easily hire nonunion workers for a lower wage.

Question 7

The quantities of labor employers are willing and able to hire at alternative wage rates in a given time period,ceteris paribus,is the definition of labor

Accepted Answer

A) Supply. 
B) Market equilibrium. 
C) Market power. 
D) Demand. 
A) Supply. 
B) Market equilibrium. 
C) Market power. 
D) Demand.

Question 8

Refer to Figure 31.2.What is the competitive level of wages and employment?

Accepted Answer

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

Question 9

Explain the concept of marginal factor cost.Why is the marginal factor cost higher than the wage rate?

Accepted Answer

The marginal factor cost is the increase

Question 10

One World View table titled "Union Membership" shows the unionization rates for several countries including the United States.The decline in the U.S.unionization rate is the result of

Accepted Answer

A) A relative decline in manufacturing. 
B) A relative decline in service industries. 
C) The growth of large firms relative to small firms. 
D) The decline in worldwide competition. 
A) A relative decline in manufacturing. 
B) A relative decline in service industries. 
C) The growth of large firms relative to small firms. 
D) The decline in worldwide competition.

Question 11

Compared with a competitive market,a monopsonist will pay a ________ wage and hire ________ workers.

Accepted Answer

A) higher;fewer 
B) higher;more 
C) lower;fewer 
D) lower;more 
A) higher;fewer 
B) higher;more 
C) lower;fewer 
D) lower;more

Question 12

The unionized percentage of the labor force in the United States has been increasing steadily since the 1950s.

Accepted Answer

A) True 
 B)False

Question 13

Workers who demand a wage that is higher than the equilibrium wage

Accepted Answer

A) Will find it difficult to secure a job. 
B) Will easily secure a job. 
C) Must belong to a union in order to secure a job. 
D) Will never benefit from joining a union. 
A) Will find it difficult to secure a job. 
B) Will easily secure a job. 
C) Must belong to a union in order to secure a job. 
D) Will never benefit from joining a union.

Question 14

As long as additional workers are attracted into the labor force by higher wages,the market labor supply curve is

Accepted Answer

A) Horizontal. 
B) Perfectly inelastic. 
C) Downward-sloping. 
D) Upward-sloping. 
A) Horizontal. 
B) Perfectly inelastic. 
C) Downward-sloping. 
D) Upward-sloping.

Question 15

A profit-maximizing monopsonist will hire the quantity of labor where

Accepted Answer

A) MRP equals the wage rate. 
B) MRP equals zero. 
C) MRP equals MFC. 
D) Labor supply equals labor demand. 
A) MRP equals the wage rate. 
B) MRP equals zero. 
C) MRP equals MFC. 
D) Labor supply equals labor demand.

Question 16

Relative to nonunion wages,one reason union wages are

Accepted Answer

A) Higher is because unions are more likely in capital-intensive industries where wages tend to be higher. 
B) Lower is because unions exclude workers from the market,which hurts their ability to raise wages. 
C) Higher is because unions have workers that contribute more to society. 
D) Lower is because the percentage of the workforce that is unionized is declining. 
A) Higher is because unions are more likely in capital-intensive industries where wages tend to be higher. 
B) Lower is because unions exclude workers from the market,which hurts their ability to raise wages. 
C) Higher is because unions have workers that contribute more to society. 
D) Lower is because the percentage of the workforce that is unionized is declining.

Question 17

The marginal factor cost facing each employer in a competitive labor market is greater than the market wage rate.

Accepted Answer

A) True 
 B)False

Question 18

In the article "Walmart Shutters Quebec Store as Union Closes In," the company argued all of the following except

Accepted Answer

A) Unions impose inefficient work rules. 
B) It is not profitable to hire 30 additional workers at an already unprofitable store. 
C) The store would be the only unionized Walmart store. 
D) Unions demanded higher labor costs that would make the store unprofitable. 
A) Unions impose inefficient work rules. 
B) It is not profitable to hire 30 additional workers at an already unprofitable store. 
C) The store would be the only unionized Walmart store. 
D) Unions demanded higher labor costs that would make the store unprofitable.

Question 19

A union shop is an employment setting in which workers

Accepted Answer

A) Must belong to a specific union in order to be hired. 
B) Must belong to a union in order to be hired although it doesn't matter which union they belong to. 
C) May choose whether or not to join the union after they are hired. 
D) Must join the union within 30 days after being hired. 
A) Must belong to a specific union in order to be hired. 
B) Must belong to a union in order to be hired although it doesn't matter which union they belong to. 
C) May choose whether or not to join the union after they are hired. 
D) Must join the union within 30 days after being hired.

Question 20

A union evaluates job offers based on the

Accepted Answer

A) Individual interests of its members. 
B) Collective interests of its members. 
C) Location of the work,either in the private or public sector. 
D) Impact on the wage rate for all union members. 
A) Individual interests of its members. 
B) Collective interests of its members. 
C) Location of the work,either in the private or public sector. 
D) Impact on the wage rate for all union members.

Exam 31: Labor Unions

The unionization rate in the United States has been

The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.

If a union achieves above-equilibrium wages for its membership,the wages of nonunion workers will generally suffer.

A market that experiences both strikes and lockouts at different times is most likely characterized by

Refer to Figure 31.3 for a competitive labor market.A shift in labor supply from S1 to S2 could be caused by:

Unions may lower real wages in the nonunion sector because

The quantities of labor employers are willing and able to hire at alternative wage rates in a given time period,ceteris paribus,is the definition of labor

Refer to Figure 31.2.What is the competitive level of wages and employment?

Explain the concept of marginal factor cost.Why is the marginal factor cost higher than the wage rate?

One World View table titled "Union Membership" shows the unionization rates for several countries including the United States.The decline in the U.S.unionization rate is the result of

Compared with a competitive market,a monopsonist will pay a ________ wage and hire ________ workers.

The unionized percentage of the labor force in the United States has been increasing steadily since the 1950s.

Workers who demand a wage that is higher than the equilibrium wage

As long as additional workers are attracted into the labor force by higher wages,the market labor supply curve is

A profit-maximizing monopsonist will hire the quantity of labor where

Relative to nonunion wages,one reason union wages are

The marginal factor cost facing each employer in a competitive labor market is greater than the market wage rate.

In the article "Walmart Shutters Quebec Store as Union Closes In," the company argued all of the following except

A union shop is an employment setting in which workers

A union evaluates job offers based on the

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

International Trade

International Finance

Global Poverty

Filters

Refer to Figure 31.3 for a competitive labor market.A shift in labor supply from S₁ to S₂ could be caused by:

Compared with a competitive market,a monopsonist will pay a wage and hire workers.