Question 1

Which of the following is not consistent with the view of labor unions as a collective voice?

Accepted Answer

A)  Unions reduce job exiting. 
B)  Labor productivity declines as a result of labor unions 
C)  The worker turnover rate is reduced by labor unions. 
D)  Workers feel more secure in their jobs as a result of labor unions. 
A)  Unions reduce job exiting. 
B)  Labor productivity declines as a result of labor unions 
C)  The worker turnover rate is reduced by labor unions. 
D)  Workers feel more secure in their jobs as a result of labor unions. B

Question 2

Unions generally call for __________ the barriers against foreign trade,as a way of __________ the elasticity of demand for union labor.

Accepted Answer

A)  lowering; increasing 
B)  lowering; decreasing 
C)  raising; increasing 
D)  raising; decreasing 
A)  lowering; increasing 
B)  lowering; decreasing 
C)  raising; increasing 
D)  raising; decreasing D

Question 3

Exhibit 28-l
  
-Refer to Exhibit 28-l.Four demand curves for labor are displayed: D1,D2,D3,and D4.Which provides the most pronounced wage-employment tradeoff?

Accepted Answer

A)  D1 
B)  D2 
C)  D3 
D)  D4 
A)  D1 
B)  D2 
C)  D3 
D)  D4 D

Question 4

If a union seeks to maximize the total wage bill received by its members,then it

Accepted Answer

A)  should seek to establish the highest possible wage rate. 
B)  should seek to establish the lowest possible wage rate. 
C)  will find that this cannot be done under any circumstances. 
D)  none of the above 
A)  should seek to establish the highest possible wage rate. 
B)  should seek to establish the lowest possible wage rate. 
C)  will find that this cannot be done under any circumstances. 
D)  none of the above

Question 5

A closed shop is an organization

Accepted Answer

A)  that is closed on holidays. 
B)  in which an employee must belong to the union before he or she can work. 
C)  that does not require workers to be union members in order to be hired, but does require them to join the union within a certain period of time after becoming employed. 
D)  set up by the federal government to train ex-convicts to become productive workers. 
E)  none of the above 
A)  that is closed on holidays. 
B)  in which an employee must belong to the union before he or she can work. 
C)  that does not require workers to be union members in order to be hired, but does require them to join the union within a certain period of time after becoming employed. 
D)  set up by the federal government to train ex-convicts to become productive workers. 
E)  none of the above

Question 6

The closed shop was prohibited by the

Accepted Answer

A)  Norris-LaGuardia Act. 
B)  Clayton Act. 
C)  Wagner Act. 
D)  Taft-Hartley Act. 
E)  none of the above 
A)  Norris-LaGuardia Act. 
B)  Clayton Act. 
C)  Wagner Act. 
D)  Taft-Hartley Act. 
E)  none of the above

Question 7

The lower the elasticity of demand for labor,

Accepted Answer

A)  the larger the cutback in labor for a given wage increase. 
B)  the smaller the cutback in labor for a given wage increase. 
C)  the higher the wage rate that a labor union receives for its membership. 
D)  the lower the wage rate that a labor union receives for its membership. 
E)  the more members of a given union. 
A)  the larger the cutback in labor for a given wage increase. 
B)  the smaller the cutback in labor for a given wage increase. 
C)  the higher the wage rate that a labor union receives for its membership. 
D)  the lower the wage rate that a labor union receives for its membership. 
E)  the more members of a given union.

Question 8

Under the traditional view of unions,unionization leads to __________ prices because unions __________.

Accepted Answer

A)  higher; have a negative impact on the productivity of the workers 
B)  lower; have a positive impact on the productivity of the workers 
C)  stable; demand long and stable wage contracts from their employers 
D)  none of the above 
A)  higher; have a negative impact on the productivity of the workers 
B)  lower; have a positive impact on the productivity of the workers 
C)  stable; demand long and stable wage contracts from their employers 
D)  none of the above

Question 9

The marginal factor cost of labor for a monopsonist is

Accepted Answer

A)  equal to the wage rate because if the monopsonist wants to hire another worker, it can do so at the old wage rate. 
B)  less than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers. 
C)  less than the wage rate because if the monopsonist wants to hire another worker, it has to lower the wage rate paid to all workers. 
D)  greater than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers. 
A)  equal to the wage rate because if the monopsonist wants to hire another worker, it can do so at the old wage rate. 
B)  less than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers. 
C)  less than the wage rate because if the monopsonist wants to hire another worker, it has to lower the wage rate paid to all workers. 
D)  greater than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers.

Question 10

In collective bargaining,a labor union

Accepted Answer

A)  discusses the job description of each member with the firm the member is employed by. 
B)  bargains with management on behalf of all its members. 
C)  usually tries to get each of its members to join a training program that can increase his or her productivity. 
D)  b and c 
E)  a, b, and c 
A)  discusses the job description of each member with the firm the member is employed by. 
B)  bargains with management on behalf of all its members. 
C)  usually tries to get each of its members to join a training program that can increase his or her productivity. 
D)  b and c 
E)  a, b, and c

Question 11

Unions provide training programs in an attempt to increase the marginal physical product of union labor,thus shifting the union demand for labor curve rightward.

Accepted Answer

A) True 
 B)False

Question 12

Some economists contend that the National Collegiate Athletic Association (NCAA)imposes its rules and regulations to keep college sports nonprofessional and in relatively high demand.

Accepted Answer

A) True 
 B)False

Question 13

To lower the elasticity of demand for labor,a labor union might attempt to

Accepted Answer

A)  decrease the availability of substitutes for the products union workers produce. 
B)  increase the availability of substitutes for the products union workers produce. 
C)  increase the availability of substitute factors for union labor. 
D)  a and c 
E)  b and c 
A)  decrease the availability of substitutes for the products union workers produce. 
B)  increase the availability of substitutes for the products union workers produce. 
C)  increase the availability of substitute factors for union labor. 
D)  a and c 
E)  b and c

Question 14

A labor union undertakes a training program for its members.The objective of the training program is to

Accepted Answer

A)  increase substitute factor prices. 
B)  increase the marginal physical product of its members and therefore increase the demand for their services. 
C)  reduce the availability of substitutes for the product it produces. 
D)  lower the supply of its labor. 
E)  none of the above 
A)  increase substitute factor prices. 
B)  increase the marginal physical product of its members and therefore increase the demand for their services. 
C)  reduce the availability of substitutes for the product it produces. 
D)  lower the supply of its labor. 
E)  none of the above

Question 15

To increase the demand for union labor,a labor union might attempt to

Accepted Answer

A)  increase the demand for the products produced by union labor. 
B)  decrease substitute factor prices. 
C)  decrease the marginal physical product productivity of union labor. 
D)  a and b 
E)  all of the above 
A)  increase the demand for the products produced by union labor. 
B)  decrease substitute factor prices. 
C)  decrease the marginal physical product productivity of union labor. 
D)  a and b 
E)  all of the above

Question 16

The Taft-Hartley Act allowed states the right to

Accepted Answer

A)  check into the past of prospective employees before they were hired. 
B)  prosecute labor union bosses who did not obey the labor practices deemed reasonable by state authorities. 
C)  pass right-to-work laws. 
D)  b and c 
E)  none of the above 
A)  check into the past of prospective employees before they were hired. 
B)  prosecute labor union bosses who did not obey the labor practices deemed reasonable by state authorities. 
C)  pass right-to-work laws. 
D)  b and c 
E)  none of the above

Question 17

The Taft-Hartley Act allowed the federal government laws regulating the formation of unions to take precedence over (override)union laws enacted by the individual states.

Accepted Answer

A) True 
 B)False

Question 18

Exhibit 28-12
  
-Refer to Exhibit 28-12.As the firm increases employment from 3 to 4 workers,its marginal factor cost (MFC)is

Accepted Answer

A)  $7.50. 
B)  $26. 
C)  $48. 
D)  $13. 
A)  $7.50. 
B)  $26. 
C)  $48. 
D)  $13.

Question 19

Exhibit 28-8
  
-Refer to Exhibit 28-8.An effective price floor set at W? would

Accepted Answer

A)  increase employment from Q1 to Q2. 
B)  increase employment from Q3 to Q4. 
C)  decrease employment from Q5 to Q2. 
D)  decrease employment from Q5 to Q4. 
A)  increase employment from Q1 to Q2. 
B)  increase employment from Q3 to Q4. 
C)  decrease employment from Q5 to Q2. 
D)  decrease employment from Q5 to Q4.

Question 20

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the __________ the demand for the product labor produces,the __________labor and the __________ wages will be,ceteris paribus.

Accepted Answer

A)  higher; greater the supply of; lower 
B)  higher; lower the demand for; higher 
C)  higher; higher the demand for; higher 
D)  lower; higher the demand for; higher 
A)  higher; greater the supply of; lower 
B)  higher; lower the demand for; higher 
C)  higher; higher the demand for; higher 
D)  lower; higher the demand for; higher

Exam 28: Wages,Unions,and Labor

Which of the following is not consistent with the view of labor unions as a collective voice?

Unions generally call for __________ the barriers against foreign trade,as a way of __________ the elasticity of demand for union labor.

Exhibit 28-l -Refer to Exhibit 28-l.Four demand curves for labor are displayed: D1,D2,D3,and D4.Which provides the most pronounced wage-employment tradeoff?

If a union seeks to maximize the total wage bill received by its members,then it

A closed shop is an organization

The closed shop was prohibited by the

The lower the elasticity of demand for labor,

Under the traditional view of unions,unionization leads to __________ prices because unions __________.

The marginal factor cost of labor for a monopsonist is

In collective bargaining,a labor union

Unions provide training programs in an attempt to increase the marginal physical product of union labor,thus shifting the union demand for labor curve rightward.

Some economists contend that the National Collegiate Athletic Association (NCAA)imposes its rules and regulations to keep college sports nonprofessional and in relatively high demand.

To lower the elasticity of demand for labor,a labor union might attempt to

A labor union undertakes a training program for its members.The objective of the training program is to

To increase the demand for union labor,a labor union might attempt to

The Taft-Hartley Act allowed states the right to

The Taft-Hartley Act allowed the federal government laws regulating the formation of unions to take precedence over (override)union laws enacted by the individual states.

Exhibit 28-12 -Refer to Exhibit 28-12.As the firm increases employment from 3 to 4 workers,its marginal factor cost (MFC)is

Exhibit 28-8 -Refer to Exhibit 28-8.An effective price floor set at W? would

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the __________ the demand for the product labor produces,the __________labor and the __________ wages will be,ceteris paribus.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

Unions generally call for the barriers against foreign trade,as a way of the elasticity of demand for union labor.

Exhibit 28-l -Refer to Exhibit 28-l.Four demand curves for labor are displayed: D₁,D₂,D₃,and D₄.Which provides the most pronounced wage-employment tradeoff?

Under the traditional view of unions,unionization leads to prices because unions .

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the the demand for the product labor produces,the labor and the __ wages will be,ceteris paribus.