Question 1

The Hicks Paradox concerns the irrationality of

Accepted Answer

A)  unions. 
B)  union dues. 
C)  strikes. 
D)  substituting low-skill labor for high-skill labor. 
E)  negotiating additional fringe benefits for union workers at the cost of receiving lower wages. 
A)  unions. 
B)  union dues. 
C)  strikes. 
D)  substituting low-skill labor for high-skill labor. 
E)  negotiating additional fringe benefits for union workers at the cost of receiving lower wages. C

Question 2

Labor unions in the United States today

Accepted Answer

A)  are as influential as they were in the 1950s. 
B)  cover the same percent of workers as they did in years past. 
C)  are much more popular among immigrant workers than among native workers. 
D)  look to protect the interests of the employers of labor. 
E)  tend to be less influential compared to labor unions in other developed countries. 
A)  are as influential as they were in the 1950s. 
B)  cover the same percent of workers as they did in years past. 
C)  are much more popular among immigrant workers than among native workers. 
D)  look to protect the interests of the employers of labor. 
E)  tend to be less influential compared to labor unions in other developed countries. E

Question 3

Which of the following do unions usually advertise to their members and potential members?

Accepted Answer

A)  high wages 
B)  steady employment 
C)  better fringe benefits 
D)  a powerful political lobby 
E)  All of these are used for advertising to members and potential members. 
A)  high wages 
B)  steady employment 
C)  better fringe benefits 
D)  a powerful political lobby 
E)  All of these are used for advertising to members and potential members. E

Question 4

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Accepted Answer

A)  restrict interstate commerce, which was prohibited by the Sherman Act. 
B)  use coercive tactics to force workers to join the union. 
C)  illegally spend dues on political activities. 
D)  reduce the United States' competitive advantage it had over Germany. 
E)  fail to protect the rights of children who could not legally join a union. 
A)  restrict interstate commerce, which was prohibited by the Sherman Act. 
B)  use coercive tactics to force workers to join the union. 
C)  illegally spend dues on political activities. 
D)  reduce the United States' competitive advantage it had over Germany. 
E)  fail to protect the rights of children who could not legally join a union.

Question 5

Featherbedding refers to

Accepted Answer

A)  negotiating better fringe benefits than nonunion workers. 
B)  one union using a previously negotiated contract as a starting point for its own negotiations. 
C)  firing high-wage workers when the union goes on strike. 
D)  the union requiring the firm to hire more workers than are actually needed to perform a particular task. 
E)  the union using its members' dues to fund political activities. 
A)  negotiating better fringe benefits than nonunion workers. 
B)  one union using a previously negotiated contract as a starting point for its own negotiations. 
C)  firing high-wage workers when the union goes on strike. 
D)  the union requiring the firm to hire more workers than are actually needed to perform a particular task. 
E)  the union using its members' dues to fund political activities.

Question 6

In the case of a vertical contract curve, union negotiations will result in the firm hiring

Accepted Answer

A)  more workers and at a higher wage than it would in the absence of the union. 
B)  the same number of workers but at a higher wage than it would in the absence of the union. 
C)  fewer workers but at a lower wage than it would in the absence of the union. 
D)  fewer workers but at a higher wage than it would in the absence of the union. 
E)  the same number of workers but at a lower wage than it would in the absence of the union. 
A)  more workers and at a higher wage than it would in the absence of the union. 
B)  the same number of workers but at a higher wage than it would in the absence of the union. 
C)  fewer workers but at a lower wage than it would in the absence of the union. 
D)  fewer workers but at a higher wage than it would in the absence of the union. 
E)  the same number of workers but at a lower wage than it would in the absence of the union.

Question 7

The National Labor Relations Act of 1935 (also known as the Wagner Act) was significant because it

Accepted Answer

A)  curtailed union power by permitting states to pass right-to-work laws. 
B)  granted firms the right to break unions. 
C)  outlawed yellow-dog contracts. 
D)  created the National Labor Relations Board. 
E)  granted union rank and file the right to decertify its leadership via election. 
A)  curtailed union power by permitting states to pass right-to-work laws. 
B)  granted firms the right to break unions. 
C)  outlawed yellow-dog contracts. 
D)  created the National Labor Relations Board. 
E)  granted union rank and file the right to decertify its leadership via election.

Question 8

Which statement best describes international comparisons of unionization rates?

Accepted Answer

A)  Private sector unionization is about the same (around 20%) in all developed countries. 
B)  Private sector unionization is greater in less-developed countries than in developed countries. 
C)  Private sector unionization rates have fallen significantly in all developed countries over the last 40 years. 
D)  Private sector unionization rates vary greatly by country. 
E)  Private sector unionization rates exceed public sector unionization rates in all developed countries. 
A)  Private sector unionization is about the same (around 20%) in all developed countries. 
B)  Private sector unionization is greater in less-developed countries than in developed countries. 
C)  Private sector unionization rates have fallen significantly in all developed countries over the last 40 years. 
D)  Private sector unionization rates vary greatly by country. 
E)  Private sector unionization rates exceed public sector unionization rates in all developed countries.

Question 9

Union organizing drives will be more successful in firms that have relatively ________ labor demand curves.

Accepted Answer

A)  inelastic 
B)  elastic 
C)  flat 
D)  linear 
E)  increasing 
A)  inelastic 
B)  elastic 
C)  flat 
D)  linear 
E)  increasing

Question 10

Yellow-dog contracts give

Accepted Answer

A)  workers the right to be represented by a union. 
B)  a nonunion worker the right to enjoy union benefits without paying union dues. 
C)  firms the right to hire replacement labor when the union strikes. 
D)  firms the right to require a worker to not join a union as a condition of employment. 
E)  the firm the right to permanently fire anyone who strikes. 
A)  workers the right to be represented by a union. 
B)  a nonunion worker the right to enjoy union benefits without paying union dues. 
C)  firms the right to hire replacement labor when the union strikes. 
D)  firms the right to require a worker to not join a union as a condition of employment. 
E)  the firm the right to permanently fire anyone who strikes.

Question 11

In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes

Accepted Answer

A)  profit. 
B)  labor costs. 
C)  the wage. 
D)  strike duration. 
E)  output. 
A)  profit. 
B)  labor costs. 
C)  the wage. 
D)  strike duration. 
E)  output.

Question 12

Which of the following does not describe the historical patterns of unionization and strike activity in the United States?

Accepted Answer

A)  The percent of workers involved in a strike has steadily decreased over the last 40 years. 
B)  The percent of public sector employees who are in a union remained relatively constant from 1950 to 2010. 
C)  The percent of time lost to a strike has steadily decreased over the last 40 years. 
D)  The percent of private sector employees who are in a union has steadily decreased over the last 40 years. 
E)  Union membership did not change very much from 1900 to 1935. 
A)  The percent of workers involved in a strike has steadily decreased over the last 40 years. 
B)  The percent of public sector employees who are in a union remained relatively constant from 1950 to 2010. 
C)  The percent of time lost to a strike has steadily decreased over the last 40 years. 
D)  The percent of private sector employees who are in a union has steadily decreased over the last 40 years. 
E)  Union membership did not change very much from 1900 to 1935.

Question 13

Which of the following is the best theoretical explanation for why strikes occur?

Accepted Answer

A)  The firm has a downward-sloped resistance curve. 
B)  The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve. 
C)  The union's leadership wants to please management. 
D)  The union does not know how valuable labor is to the firm. 
E)  The firm wants to minimize labor costs. 
A)  The firm has a downward-sloped resistance curve. 
B)  The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve. 
C)  The union's leadership wants to please management. 
D)  The union does not know how valuable labor is to the firm. 
E)  The firm wants to minimize labor costs.

Question 14

The union wage gap for private sector unions in the United States is presently on the order of

Accepted Answer

A)  2%. 
B)  8%. 
C)  15%. 
D)  28%. 
E)  39%. 
A)  2%. 
B)  8%. 
C)  15%. 
D)  28%. 
E)  39%.

Question 15

Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:

Accepted Answer

A)  the union wage is greater than the competitive wage when there is no union sector. 
B)  the nonunion wage is less than the competitive wage when there is no union sector. 
C)  fewer workers are hired in the union sector than those same firms would hire if there was no union sector. 
D)  more workers are hired in the nonunion sector than those same firms would hire if there was no union sector. 
E)  total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector. 
A)  the union wage is greater than the competitive wage when there is no union sector. 
B)  the nonunion wage is less than the competitive wage when there is no union sector. 
C)  fewer workers are hired in the union sector than those same firms would hire if there was no union sector. 
D)  more workers are hired in the nonunion sector than those same firms would hire if there was no union sector. 
E)  total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector.

Question 16

Which of the following is not associated with strikes?

Accepted Answer

A)  Strikes are costly to the firm. 
B)  Strikes are costly to the union. 
C)  The probability of striking is generally procyclical. 
D)  Strike duration is generally procyclical. 
E)  If the union makes wage offers, it will likely do so according to a downward-sloping resistance curve. 
A)  Strikes are costly to the firm. 
B)  Strikes are costly to the union. 
C)  The probability of striking is generally procyclical. 
D)  Strike duration is generally procyclical. 
E)  If the union makes wage offers, it will likely do so according to a downward-sloping resistance curve.

Question 17

Which of the following is a reason why the union wage gap might overestimate the actual effect unions have on wages?

Accepted Answer

A)  Unionized workers tend to work more hours each week than nonunionized workers. 
B)  Nonunion firms may pay higher wages in order to stave off unionization. 
C)  Unions tend to negotiate better fringe benefits for their members than what nonunion workers receive. 
D)  Higher union-negotiated wages likely attract more productive workers to union jobs. 
E)  The union wage gap can be underestimated but never overestimated. 
A)  Unionized workers tend to work more hours each week than nonunionized workers. 
B)  Nonunion firms may pay higher wages in order to stave off unionization. 
C)  Unions tend to negotiate better fringe benefits for their members than what nonunion workers receive. 
D)  Higher union-negotiated wages likely attract more productive workers to union jobs. 
E)  The union wage gap can be underestimated but never overestimated.

Question 18

Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?

Accepted Answer

A)  Unions typically attract the most productive workers to the application pool. 
B)  Nonunion firms may pay higher wages in order to prevent its workers from unionizing. 
C)  Nonunion jobs will have excess labor available to them because firms will restrict entry into union jobs, and competition for this excess labor competes down the observed nonunion wage. 
D)  Unions target high-paying firms. 
E)  The union wage gap can be overestimated but never underestimated. 
A)  Unions typically attract the most productive workers to the application pool. 
B)  Nonunion firms may pay higher wages in order to prevent its workers from unionizing. 
C)  Nonunion jobs will have excess labor available to them because firms will restrict entry into union jobs, and competition for this excess labor competes down the observed nonunion wage. 
D)  Unions target high-paying firms. 
E)  The union wage gap can be overestimated but never underestimated.

Question 19

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Accepted Answer

A)  curtailed union power by permitting states to pass right-to-work laws. 
B)  granted firms the right to break unions. 
C)  outlawed yellow-dog contracts. 
D)  created the National Labor Relations Board. 
E)  granted union rank and file the right to decertify its leadership via election. 
A)  curtailed union power by permitting states to pass right-to-work laws. 
B)  granted firms the right to break unions. 
C)  outlawed yellow-dog contracts. 
D)  created the National Labor Relations Board. 
E)  granted union rank and file the right to decertify its leadership via election.

Question 20

Which of the following best defines final-offer arbitration?

Accepted Answer

A)  After a short strike, the union offers a final contract to the firm that the firm must accept. 
B)  An arbitrator produces a contract that the union and firm are both encouraged to accept. 
C)  Final-offer arbitration occurs when the firm threatens to shut down unless the union accepts the firm's final offer. 
D)  An arbitrator chooses the firm's last offer or the union's last offer, and both sides must abide by whichever contract is chosen. 
E)  An arbitrator facilitates a discussion between the union and firm after the cool-down period has expired. 
A)  After a short strike, the union offers a final contract to the firm that the firm must accept. 
B)  An arbitrator produces a contract that the union and firm are both encouraged to accept. 
C)  Final-offer arbitration occurs when the firm threatens to shut down unless the union accepts the firm's final offer. 
D)  An arbitrator chooses the firm's last offer or the union's last offer, and both sides must abide by whichever contract is chosen. 
E)  An arbitrator facilitates a discussion between the union and firm after the cool-down period has expired.

The Hicks Paradox concerns the irrationality of

Labor unions in the United States today

Which of the following do unions usually advertise to their members and potential members?

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Featherbedding refers to

In the case of a vertical contract curve, union negotiations will result in the firm hiring

The National Labor Relations Act of 1935 (also known as the Wagner Act) was significant because it

Which statement best describes international comparisons of unionization rates?

Union organizing drives will be more successful in firms that have relatively ________ labor demand curves.

Yellow-dog contracts give

In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes

Which of the following does not describe the historical patterns of unionization and strike activity in the United States?

Which of the following is the best theoretical explanation for why strikes occur?

The union wage gap for private sector unions in the United States is presently on the order of

Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:

Which of the following is not associated with strikes?

Which of the following is a reason why the union wage gap might overestimate the actual effect unions have on wages?

Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Which of the following best defines final-offer arbitration?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Incentive Pay

Unemployment

Filters

Exam 10: Labor Unions

The Hicks Paradox concerns the irrationality of

Labor unions in the United States today

Which of the following do unions usually advertise to their members and potential members?

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Featherbedding refers to

In the case of a vertical contract curve, union negotiations will result in the firm hiring

The National Labor Relations Act of 1935 (also known as the Wagner Act) was significant because it

Which statement best describes international comparisons of unionization rates?

Union organizing drives will be more successful in firms that have relatively ________ labor demand curves.

Yellow-dog contracts give

In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes

Which of the following does not describe the historical patterns of unionization and strike activity in the United States?

Which of the following is the best theoretical explanation for why strikes occur?

The union wage gap for private sector unions in the United States is presently on the order of

Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:

Which of the following is not associated with strikes?

Which of the following is a reason why the union wage gap might overestimate the actual effect unions have on wages?

Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Which of the following best defines final-offer arbitration?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Incentive Pay

Unemployment

Filters