Question 1

Which of the following is least associated with union jobs and contracts?

Accepted Answer

A)  high-skilled workers 
B)  a large population of black workers 
C)  a large population of immigrant workers 
D)  both private and public sectors jobs 
E)  jobs in industries that are controlled by just a few firms 
A)  high-skilled workers 
B)  a large population of black workers 
C)  a large population of immigrant workers 
D)  both private and public sectors jobs 
E)  jobs in industries that are controlled by just a few firms

Question 2

Right-to-work laws give

Accepted Answer

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

Question 3

Final offer arbitration

Accepted Answer

A)  provides an incentive for the union, but not the firm's management, to make a more reasonable final offer. 
B)  provides an incentive for the firm's management, but not the union, to make a more reasonable final offer. 
C)  is particularly useful at brining both sides closer to common ground. 
D)  rarely makes the entire bargaining process more efficient. 
E)  would never be chosen by a public sector union if the state did not require it. 
A)  provides an incentive for the union, but not the firm's management, to make a more reasonable final offer. 
B)  provides an incentive for the firm's management, but not the union, to make a more reasonable final offer. 
C)  is particularly useful at brining both sides closer to common ground. 
D)  rarely makes the entire bargaining process more efficient. 
E)  would never be chosen by a public sector union if the state did not require it.

Question 4

A union will be more successful at forming when the firm's labor demand curve is inelastic because under these conditions the union organizers can "promise"

Accepted Answer

A)  low union dues. 
B)  small wage losses but large employment gains. 
C)  small wage gains and minimal employment losses. 
D)  large wage gains and large employment gains. 
E)  large wage gains with minimal employment losses. 
A)  low union dues. 
B)  small wage losses but large employment gains. 
C)  small wage gains and minimal employment losses. 
D)  large wage gains and large employment gains. 
E)  large wage gains with minimal employment losses.

Question 5

The labor demand curve is

Accepted Answer

A)  the same as the marginal cost curve. 
B)  composed of the peaks of isoprofit curves. 
C)  upward sloping. 
D)  derived completely by the price of the firm's good. 
E)  determined completely by the firm's technology. 
A)  the same as the marginal cost curve. 
B)  composed of the peaks of isoprofit curves. 
C)  upward sloping. 
D)  derived completely by the price of the firm's good. 
E)  determined completely by the firm's technology.

Question 6

What is the union wage gap if the average union salary is $92,000 while the average nonunion salary is $80,000?

Accepted Answer

A)  10% 
B)  13% 
C)  15% 
D)  87% 
E)  125% 
A)  10% 
B)  13% 
C)  15% 
D)  87% 
E)  125%

Question 7

A strike

Accepted Answer

A)  can be a rational response during the union-firm negotiation process. 
B)  is a Pareto optimal outcome. 
C)  hurts the firm's management and shareholders but not the union members. 
D)  is never in the best interest of the rank and file. 
E)  is always in the firm's best interest. 
A)  can be a rational response during the union-firm negotiation process. 
B)  is a Pareto optimal outcome. 
C)  hurts the firm's management and shareholders but not the union members. 
D)  is never in the best interest of the rank and file. 
E)  is always in the firm's best interest.

Question 8

The wage-employment outcomes described by the contract curve

Accepted Answer

A)  fail to exhaust all bargaining opportunities between the employer and the union except for the single point on the contract curve that is associated with maximum wages. 
B)  are associated with the firm hiring more workers at a higher wage than they would under a monopoly union outcome. 
C)  are Pareto optimal and result in an efficient contract. 
D)  must be located below and to the left of the outcome that would result in the absence of a union. 
E)  must be located above and to the left of the outcome that results when there is a monopoly union. 
A)  fail to exhaust all bargaining opportunities between the employer and the union except for the single point on the contract curve that is associated with maximum wages. 
B)  are associated with the firm hiring more workers at a higher wage than they would under a monopoly union outcome. 
C)  are Pareto optimal and result in an efficient contract. 
D)  must be located below and to the left of the outcome that would result in the absence of a union. 
E)  must be located above and to the left of the outcome that results when there is a monopoly union.

Question 9

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

Accepted Answer

A)  the union's sole objective is to increase the wage. 
B)  union leadership disregards the preferences of the rank and file. 
C)  unions never lead to an efficiency loss. 
D)  unions are willing to trade off some amount of employment for higher earnings. 
E)  unions and management secretly negotiate on the behalf of stockholders. 
A)  the union's sole objective is to increase the wage. 
B)  union leadership disregards the preferences of the rank and file. 
C)  unions never lead to an efficiency loss. 
D)  unions are willing to trade off some amount of employment for higher earnings. 
E)  unions and management secretly negotiate on the behalf of stockholders.

Question 10

When the possibility for strongly efficient contracts occurs, what will happen?

Accepted Answer

A)  The union and firm negotiate over the employment level but not over the wage. 
B)  The union and firm negotiate over the wage level but not over the employment level. 
C)  The labor demand curve must be vertical. 
D)  Isoprofit lines must be horizontal. 
E)  Isoprofit lines are parabolas that open upward. 
A)  The union and firm negotiate over the employment level but not over the wage. 
B)  The union and firm negotiate over the wage level but not over the employment level. 
C)  The labor demand curve must be vertical. 
D)  Isoprofit lines must be horizontal. 
E)  Isoprofit lines are parabolas that open upward.

Which of the following is least associated with union jobs and contracts?

Right-to-work laws give

Final offer arbitration

A union will be more successful at forming when the firm's labor demand curve is inelastic because under these conditions the union organizers can "promise"

The labor demand curve is

What is the union wage gap if the average union salary is $92,000 while the average nonunion salary is $80,000?

A strike

The wage-employment outcomes described by the contract curve

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

When the possibility for strongly efficient contracts occurs, what will happen?

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

Which of the following is least associated with union jobs and contracts?

Right-to-work laws give

Final offer arbitration

A union will be more successful at forming when the firm's labor demand curve is inelastic because under these conditions the union organizers can "promise"

The labor demand curve is

What is the union wage gap if the average union salary is $92,000 while the average nonunion salary is $80,000?

A strike

The wage-employment outcomes described by the contract curve

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

When the possibility for strongly efficient contracts occurs, what will happen?

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