Question 1

How many workers are willing and able to work at the optimal union wage rate in Figure 31.1?

Accepted Answer

A) 10. 
B) 13. 
C) 16. 
D) 24. 
A) 10. 
B) 13. 
C) 16. 
D) 24.

Question 2

The desired level of union employment occurs where the market wage curve intersects the labor supply curve.

Accepted Answer

A) True 
 B)False

Question 3

In a bilateral monopoly,wages and employment are determined by

Accepted Answer

A) Negotiation. 
B) The intersection of market supply and demand. 
C) The intersection of marginal cost and marginal revenue product. 
D) The intersection of marginal wage and market demand. 
A) Negotiation. 
B) The intersection of market supply and demand. 
C) The intersection of marginal cost and marginal revenue product. 
D) The intersection of marginal wage and market demand.

Question 4

A workplace that requires workers to become union members within 30 days of being hired by a firm is

Accepted Answer

A) A craft union. 
B) An industrial union. 
C) A union shop. 
D) The AFL-CIO. 
A) A craft union. 
B) An industrial union. 
C) A union shop. 
D) The AFL-CIO.

Question 5

If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from five to seven workers,the marginal wage is

Accepted Answer

A) $35,714. 
B) $25,000. 
C) $250,000. 
D) $50,000. 
A) $35,714. 
B) $25,000. 
C) $250,000. 
D) $50,000.

Question 6

Monopsonists hire the amount of labor that will equate the marginal factor cost with the derived demand curve for labor.

Accepted Answer

A) True 
 B)False

Question 7

Workers with a particular skill are represented by

Accepted Answer

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

Question 8

An In the News article titled "Caterpillar vs.the IAM" describes collective bargaining as

Accepted Answer

A) The competition between labor unions for workers. 
B) Direct negotiations between employers and labor unions. 
C) Government intervention to end a strike. 
D) Negotiations between workers and labor union organizers. 
A) The competition between labor unions for workers. 
B) Direct negotiations between employers and labor unions. 
C) Government intervention to end a strike. 
D) Negotiations between workers and labor union organizers.

Question 9

The old industrial unions are being supplanted by

Accepted Answer

A) Unions of service workers. 
B) Craft unions. 
C) Union shops. 
D) Private sector unions. 
A) Unions of service workers. 
B) Craft unions. 
C) Union shops. 
D) Private sector unions.

Question 10

Union shops are subject to potential competition

Accepted Answer

A) Because some union shop workers refuse to join the union. 
B) From replacement or substitute workers. 
C) Since most union members do not take strikes seriously. 
D) Since striking union members may be ordered back to work by the president. 
A) Because some union shop workers refuse to join the union. 
B) From replacement or substitute workers. 
C) Since most union members do not take strikes seriously. 
D) Since striking union members may be ordered back to work by the president.

Question 11

In bilateral monopoly,price and output are determined by the intersection of demand and supply curves.

Accepted Answer

A) True 
 B)False

Question 12

Monopolists in the labor market equate the marginal wage with the marginal revenue product to find the desired level of employment for a union.

Accepted Answer

A) True 
 B)False

Question 13

The profit-maximizing level of labor,in a union-dominated labor market,occurs where

Accepted Answer

A) Marginal wage = marginal factor cost. 
B) Marginal wage = zero. 
C) MRP = marginal wage. 
D) MRP = marginal factor cost. 
A) Marginal wage = marginal factor cost. 
B) Marginal wage = zero. 
C) MRP = marginal wage. 
D) MRP = marginal factor cost.

Question 14

Walmart,the largest employer in the United States,employs

Accepted Answer

A) Approximately 2 percent of the labor force. 
B) Less than 1 percent of the labor force. 
C) More than 15 percent of the labor force. 
D) Approximately 10 percent of the labor force. 
A) Approximately 2 percent of the labor force. 
B) Less than 1 percent of the labor force. 
C) More than 15 percent of the labor force. 
D) Approximately 10 percent of the labor force.

Question 15

A union will try to increase employment for its members as long as the marginal wage is positive.

Accepted Answer

A) True 
 B)False

Question 16

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.Assume the union collects dues of 1 percent of the total wage bill.How many workers would the union want hired in Table 31.1 if its goal was to maximize the amount of dues collected?

Accepted Answer

A) 2. 
B) 4. 
C) 6. 
D) 8. 
A) 2. 
B) 4. 
C) 6. 
D) 8.

Question 17

Management's power in collective bargaining sessions rests on

Accepted Answer

A) The company's stock valuation. 
B) The ability to lock out workers by closing stores or factories. 
C) The ability to fire nonunionized workers. 
D) The firm's market power in pricing its product. 
A) The company's stock valuation. 
B) The ability to lock out workers by closing stores or factories. 
C) The ability to fire nonunionized workers. 
D) The firm's market power in pricing its product.

Question 18

What is a union shop,and what is its purpose?

Accepted Answer

A union shop is an employment situation

Question 19

The collective bargaining process can result in a wage below the supply curve of labor.

Accepted Answer

A) True 
 B)False

Question 20

Both the unionization and concentration rates are measures of market power.

Accepted Answer

A) True 
 B)False

Exam 31: Labor Unions

How many workers are willing and able to work at the optimal union wage rate in Figure 31.1?

The desired level of union employment occurs where the market wage curve intersects the labor supply curve.

In a bilateral monopoly,wages and employment are determined by

A workplace that requires workers to become union members within 30 days of being hired by a firm is

If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from five to seven workers,the marginal wage is

Monopsonists hire the amount of labor that will equate the marginal factor cost with the derived demand curve for labor.

Workers with a particular skill are represented by

An In the News article titled "Caterpillar vs.the IAM" describes collective bargaining as

The old industrial unions are being supplanted by

Union shops are subject to potential competition

In bilateral monopoly,price and output are determined by the intersection of demand and supply curves.

Monopolists in the labor market equate the marginal wage with the marginal revenue product to find the desired level of employment for a union.

The profit-maximizing level of labor,in a union-dominated labor market,occurs where

Walmart,the largest employer in the United States,employs

A union will try to increase employment for its members as long as the marginal wage is positive.

Management's power in collective bargaining sessions rests on

What is a union shop,and what is its purpose?

The collective bargaining process can result in a wage below the supply curve of labor.

Both the unionization and concentration rates are measures of market power.

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