Question 1

By raising their wages,unions typically

Accepted Answer

A) increase total productivity,which must rise proportionally with the wage rate. 
B) encourage employers to find substitutes for union labor. 
C) raise the wages of nonunion workers as well. 
D) lower the prices consumers pay for the products produced by union firms. 
A) increase total productivity,which must rise proportionally with the wage rate. 
B) encourage employers to find substitutes for union labor. 
C) raise the wages of nonunion workers as well. 
D) lower the prices consumers pay for the products produced by union firms. B

Question 2

Laws that prohibit collective bargaining agreements requiring a worker to join a union as a condition of employment are called

Accepted Answer

A) collective bargaining agreements. 
B) minimum wage laws. 
C) union shop laws. 
D) right-to-work laws. 
A) collective bargaining agreements. 
B) minimum wage laws. 
C) union shop laws. 
D) right-to-work laws. D

Question 3

The demand for unionized labor will generally be more elastic,and it will be more difficult for the union to achieve above-equilibrium wages when

Accepted Answer

A) there are many close substitutes for the unionized workers. 
B) trade barriers limit the importation of the product produced by the unionized workers. 
C) the cost of employing the unionized workers is a small part of the total cost of product that they produce. 
D) the demand for the product produced by the unionized workers is highly inelastic. 
A) there are many close substitutes for the unionized workers. 
B) trade barriers limit the importation of the product produced by the unionized workers. 
C) the cost of employing the unionized workers is a small part of the total cost of product that they produce. 
D) the demand for the product produced by the unionized workers is highly inelastic. A

Question 4

The experience of the Teamsters in the late 1970s and early 1980s suggests that

Accepted Answer

A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by)nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand,which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators,independent of market conditions. 
A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by)nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand,which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators,independent of market conditions.

Question 5

As the football season approaches,the threat of a player strike would give

Accepted Answer

A) both players and management an incentive to bargain seriously. 
B) only the players an incentive to bargain seriously. 
C) only management an incentive to bargain seriously. 
D) neither party much incentive to bargain seriously. 
A) both players and management an incentive to bargain seriously. 
B) only the players an incentive to bargain seriously. 
C) only management an incentive to bargain seriously. 
D) neither party much incentive to bargain seriously.

Question 6

Measured as a share of the labor force,union membership was at its highest level in the United States during the

Accepted Answer

A) 1930s 
B) 1950s 
C) 1970s 
D) 1990s 
A) 1930s 
B) 1950s 
C) 1970s 
D) 1990s

Question 7

Since 1970,union membership,as a percent of the labor force,has

Accepted Answer

A) remained virtually unchanged. 
B) increased slightly. 
C) declined steadily. 
D) increased significantly. 
A) remained virtually unchanged. 
B) increased slightly. 
C) declined steadily. 
D) increased significantly.

Question 8

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

Accepted Answer

A) an elastic demand for the goods produced by union labor 
B) weak foreign competition for the product union labor helps to produce 
C) high tariffs on goods produced by the union labor 
D) favoritism in the allocation of government contracts to firms that employ union labor 
A) an elastic demand for the goods produced by union labor 
B) weak foreign competition for the product union labor helps to produce 
C) high tariffs on goods produced by the union labor 
D) favoritism in the allocation of government contracts to firms that employ union labor

Question 9

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

Accepted Answer

A) Such competition reduces the ability of a union to achieve wage increases. 
B) Such competition does not affect the ability of a union to achieve wage increases. 
C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product. 
D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market. 
A) Such competition reduces the ability of a union to achieve wage increases. 
B) Such competition does not affect the ability of a union to achieve wage increases. 
C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product. 
D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.

Question 10

The demand for union labor is usually determined by

Accepted Answer

A) the number of union members. 
B) the strength of the union. 
C) the total value of the union labor in the production process. 
D) market conditions outside the union's direct control. 
A) the number of union members. 
B) the strength of the union. 
C) the total value of the union labor in the production process. 
D) market conditions outside the union's direct control.

Question 11

Which of the following is not a cause of the decline in unionization in the United States?

Accepted Answer

A) deregulation in transportation and communication industries 
B) increased foreign competition 
C) growth in the number of smaller firms 
D) an increase in the number of workers wishing to be union members 
A) deregulation in transportation and communication industries 
B) increased foreign competition 
C) growth in the number of smaller firms 
D) an increase in the number of workers wishing to be union members

Question 12

If a firm operates in a competitive industry and its unionized labor force is successful in bargaining for a wage increase,where is the firm likely to get the money to pay the higher wages?

Accepted Answer

If it is a competitive industry,the owne

Question 13

The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955.During these 25 years,the share of national income allocated to labor (in contrast to capital)

Accepted Answer

A) remained virtually constant. 
B) increased approximately 10 percent. 
C) increased between 15 and 25 percent. 
D) increased 17.6 percent. 
A) remained virtually constant. 
B) increased approximately 10 percent. 
C) increased between 15 and 25 percent. 
D) increased 17.6 percent.

Question 14

Which of the following statements is true?

Accepted Answer

A) The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S.labor force. 
B) Inflation in the United States has tended to accelerate as the proportion of the U.S.labor force that is unionized has increased. 
C) Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors. 
D) High real wages cannot be achieved and sustained without increases in output per worker hour. 
A) The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S.labor force. 
B) Inflation in the United States has tended to accelerate as the proportion of the U.S.labor force that is unionized has increased. 
C) Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors. 
D) High real wages cannot be achieved and sustained without increases in output per worker hour.

Question 15

As the percentage of the labor force belonging to a union fell in the United States during the 1955 through early 2000 period,the share of national income going to labor

Accepted Answer

A) increased 10 percent. 
B) remained approximately the same. 
C) decreased 10 percent. 
D) decreased 20 percent. 
A) increased 10 percent. 
B) remained approximately the same. 
C) decreased 10 percent. 
D) decreased 20 percent.

Question 16

Which of the following will tend to increase the ability of a union to increase the wages of its members?

Accepted Answer

A) Almost all of the firms in the industry are unionized. 
B) Foreign competition for the product produced by the union labor is intense. 
C) There is a reduction in the demand for union labor. 
D) The demand for the product produced by the union labor is highly elastic. 
A) Almost all of the firms in the industry are unionized. 
B) Foreign competition for the product produced by the union labor is intense. 
C) There is a reduction in the demand for union labor. 
D) The demand for the product produced by the union labor is highly elastic.

Question 17

What common goals,if any,do labor and management share?

Accepted Answer

Both should be vitally interested in the

Question 18

List some factors that might make the threat of a strike more effective.

Accepted Answer

These include low inventory le

Question 19

Which of the following is most likely to belong to a union?

Accepted Answer

A) a government employee 
B) a salesperson 
C) a chef at a four-star restaurant 
D) a taxi driver 
A) a government employee 
B) a salesperson 
C) a chef at a four-star restaurant 
D) a taxi driver

Question 20

In 2008,approximately what percent of the nonagricultural workforce belonged to a union?

Accepted Answer

A) 2 percent 
B) 12 percent 
C) 35 percent 
D) 98 percent 
A) 2 percent 
B) 12 percent 
C) 35 percent 
D) 98 percent

Exam 40: Do Labor Unions Increase the Wages of Workers

By raising their wages,unions typically

Laws that prohibit collective bargaining agreements requiring a worker to join a union as a condition of employment are called

The demand for unionized labor will generally be more elastic,and it will be more difficult for the union to achieve above-equilibrium wages when

The experience of the Teamsters in the late 1970s and early 1980s suggests that

As the football season approaches,the threat of a player strike would give

Measured as a share of the labor force,union membership was at its highest level in the United States during the

Since 1970,union membership,as a percent of the labor force,has

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

The demand for union labor is usually determined by

Which of the following is not a cause of the decline in unionization in the United States?

If a firm operates in a competitive industry and its unionized labor force is successful in bargaining for a wage increase,where is the firm likely to get the money to pay the higher wages?

The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955.During these 25 years,the share of national income allocated to labor (in contrast to capital)

Which of the following statements is true?

As the percentage of the labor force belonging to a union fell in the United States during the 1955 through early 2000 period,the share of national income going to labor

Which of the following will tend to increase the ability of a union to increase the wages of its members?

What common goals,if any,do labor and management share?

List some factors that might make the threat of a strike more effective.

Which of the following is most likely to belong to a union?

In 2008,approximately what percent of the nonagricultural workforce belonged to a union?

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Economic Fluctuations, unemployment, and Inflation

Aan Introduction to Basic Macroeconomic Markets

Dynamic Change, economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, output, and Employment

Creating an Environment for Growth and Prosperity

Institutions,policies,and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

The Economics of Healthcare

Education: Problems and Performance

Earnings Differences Between Men and Women

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

Filters