Question 1

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

Accepted Answer

A) the presence of nonunion firms that produce the same product as the unionized labor 
B) foreign competition in the market for the product produced by the unionized labor 
C) a highly elastic demand for the product supplied by the unionized labor 
D) all of the above 
A) the presence of nonunion firms that produce the same product as the unionized labor 
B) foreign competition in the market for the product produced by the unionized labor 
C) a highly elastic demand for the product supplied by the unionized labor 
D) all of the above

Question 2

Which of the following factors will make it easier for a labor union to increase the wages of its members?

Accepted Answer

A) a highly inelastic demand for the products produced by the union labor 
B) a readily available supply of similar products produced by nonunion labor 
C) low tariffs and strong competition from foreign firms producing the products supplied by the union labor 
D) a reduction in the demand for the products produced by the union labor 
A) a highly inelastic demand for the products produced by the union labor 
B) a readily available supply of similar products produced by nonunion labor 
C) low tariffs and strong competition from foreign firms producing the products supplied by the union labor 
D) a reduction in the demand for the products produced by the union labor

Question 3

Union membership has fluctuated during the last several decades.Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

Accepted Answer

A) The share of output going to labor has been virtually constant,even though union membership as a share of the labor force has fluctuated. 
B) The share of total output going to labor has followed the same pattern as the business cycle in recent years. 
C) The share of total output going to labor rose as union membership rose from 1945 to 1960 and fell as union membership declined during the 1960 through 2000 period. 
D) The share of total output going to labor has increased substantially,even though during the last several decades union membership has declined. 
A) The share of output going to labor has been virtually constant,even though union membership as a share of the labor force has fluctuated. 
B) The share of total output going to labor has followed the same pattern as the business cycle in recent years. 
C) The share of total output going to labor rose as union membership rose from 1945 to 1960 and fell as union membership declined during the 1960 through 2000 period. 
D) The share of total output going to labor has increased substantially,even though during the last several decades union membership has declined.

Question 4

Which of the following statements is true for the U.S.economy?

Accepted Answer

A) Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. 
B) Inflation tends to accelerate when the proportion of the labor force that is unionized increases. 
C) Union workers currently receive wages that are 15 to 20 percent higher,on average,than similar nonunion workers. 
D) When we compare similar union and nonunion workers,we find virtually no difference in the wages they receive. 
A) Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. 
B) Inflation tends to accelerate when the proportion of the labor force that is unionized increases. 
C) Union workers currently receive wages that are 15 to 20 percent higher,on average,than similar nonunion workers. 
D) When we compare similar union and nonunion workers,we find virtually no difference in the wages they receive.

Question 5

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) a five-year apprenticeship before one can qualify for jobs held by union members 
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) a five-year apprenticeship before one can qualify for jobs held by union members 
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 6

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

Accepted Answer

A) has remained virtually unchanged. 
B) has increased,as more government workers have decided to unionize. 
C) has decreased. 
D) has gone through wild swings both up and down. 
A) has remained virtually unchanged. 
B) has increased,as more government workers have decided to unionize. 
C) has decreased. 
D) has gone through wild swings both up and down.

Question 7

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 makes it easier for the union to achieve wage increases. 
B) Such competition reduces the ability of a union to achieve wage increases. 
C) Such competition does not affect the ability of a union to achieve wage increases. 
D) Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product. 
A) Such competition makes it easier for the union to achieve wage increases. 
B) Such competition reduces the ability of a union to achieve wage increases. 
C) Such competition does not affect the ability of a union to achieve wage increases. 
D) Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product.

Question 8

Which of the following is not one of the channels through which a union may raise wages?

Accepted Answer

A) supply restrictions 
B) increasing the demand for union labor 
C) more competitive product pricing 
D) bargaining power 
A) supply restrictions 
B) increasing the demand for union labor 
C) more competitive product pricing 
D) bargaining power

Question 9

Which of the following is true?

Accepted Answer

A) The proportion of female workers who are union members is higher than the proportion of male workers. 
B) The proportion of government employees who are union members is higher than the proportion of private sector workers. 
C) The proportion of workers in southern states who are union members is higher than the proportion in northern states. 
D) The proportion of white workers who are union members is higher than the proportion of black workers. 
A) The proportion of female workers who are union members is higher than the proportion of male workers. 
B) The proportion of government employees who are union members is higher than the proportion of private sector workers. 
C) The proportion of workers in southern states who are union members is higher than the proportion in northern states. 
D) The proportion of white workers who are union members is higher than the proportion of black workers.

Question 10

A former union employee states: "We were on strike for two years.I know the eventual wage increase we received will never make up for the wages I lost,but I think the strike was worth it.We forced the company to give in to our demands." Evaluate these comments.

Accepted Answer

If income were the only thing that matte

Question 11

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

Accepted Answer

An inelastic demand in the product marke

Question 12

Which of the following states had the lowest incidence of union membership as a percent of all wage and salary workers in 2010?

Accepted Answer

A) New York,Hawaii,and Alaska 
B) South Carolina,North Carolina,and Arkansas 
C) Illinois,Michigan,and Ohio 
D) Nevada,Hawaii,and Alaska 
A) New York,Hawaii,and Alaska 
B) South Carolina,North Carolina,and Arkansas 
C) Illinois,Michigan,and Ohio 
D) Nevada,Hawaii,and Alaska

Question 13

Which of the following is most likely to be associated with a strong union?

Accepted Answer

A) The demand for the products produced by the unionized labor is highly elastic. 
B) There are few good substitutes for the products produced by the unionized labor. 
C) It is easy to substitute capital for the labor of the union members. 
D) Union labor composes a large proportion of the total cost of the product that they help produce. 
A) The demand for the products produced by the unionized labor is highly elastic. 
B) There are few good substitutes for the products produced by the unionized labor. 
C) It is easy to substitute capital for the labor of the union members. 
D) Union labor composes a large proportion of the total cost of the product that they help produce.

Question 14

The share of the labor force that was unionized increased from 7.4 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) increased approximately 10 percent. 
B) increased 17.6 percent. 
C) fell 20 percent. 
D) was virtually unchanged. 
A) increased approximately 10 percent. 
B) increased 17.6 percent. 
C) fell 20 percent. 
D) was virtually unchanged.

Question 15

An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because

Accepted Answer

A) union labor is more productive. 
B) profit levels are lowered to increase wages. 
C) strike threats promote wage increases. 
D) This is a trick question because greater unionization does not imply higher average wages. 
A) union labor is more productive. 
B) profit levels are lowered to increase wages. 
C) strike threats promote wage increases. 
D) This is a trick question because greater unionization does not imply higher average wages.

Question 16

Firms will be much more willing to consent to significant wage increases when

Accepted Answer

A) right-to-work laws are present. 
B) the demand for the final product is weak. 
C) the firm has low product inventory. 
D) the demand for the final product is elastic. 
A) right-to-work laws are present. 
B) the demand for the final product is weak. 
C) the firm has low product inventory. 
D) the demand for the final product is elastic.

Question 17

A strike,or the threat of one,is most likely to be effective when

Accepted Answer

A) demand for the firm's product is strong. 
B) foreign competition for the product is high. 
C) the firm has a high product inventory. 
D) demand for the product produced by the union workers is highly elastic. 
A) demand for the firm's product is strong. 
B) foreign competition for the product is high. 
C) the firm has a high product inventory. 
D) demand for the product produced by the union workers is highly elastic.

Question 18

From 1950 to 2008,union membership has declined from more than 30 percent of the workforce to approximately 12 percent.Over this period,the share of national income going to labor

Accepted Answer

A) declined substantially. 
B) increased substantially. 
C) remained approximately the same. 
D) initially increased but has fallen recently. 
A) declined substantially. 
B) increased substantially. 
C) remained approximately the same. 
D) initially increased but has fallen recently.

Question 19

Since the demand for a narrowly defined product class (Fords,for example)is more elastic than the demand for a broadly defined product class (all automobiles),a union will be better able to raise the wages of its members without causing a reduction in their employment when

Accepted Answer

A) it can organize an entire industry,rather than just selective firms within the industry. 
B) it concentrates its organizational efforts on a single firm,ignoring the rest of the industry. 
C) the demand for the product is highly elastic. 
D) there are many good substitutes for union labor. 
A) it can organize an entire industry,rather than just selective firms within the industry. 
B) it concentrates its organizational efforts on a single firm,ignoring the rest of the industry. 
C) the demand for the product is highly elastic. 
D) there are many good substitutes for union labor.

Question 20

What is the primary source of higher real wages?

Accepted Answer

A) labor unions 
B) the threat of a strike by a union 
C) increases in productivity 
D) increases in the supply of money 
A) labor unions 
B) the threat of a strike by a union 
C) increases in productivity 
D) increases in the supply of money

Exam 40: Do Labor Unions Increase the Wages of Workers

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

Which of the following factors will make it easier for a labor union to increase the wages of its members?

Union membership has fluctuated during the last several decades.Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

Which of the following statements is true for the U.S.economy?

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

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

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

Which of the following is not one of the channels through which a union may raise wages?

Which of the following is true?

A former union employee states: "We were on strike for two years.I know the eventual wage increase we received will never make up for the wages I lost,but I think the strike was worth it.We forced the company to give in to our demands." Evaluate these comments.

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

Which of the following states had the lowest incidence of union membership as a percent of all wage and salary workers in 2010?

Which of the following is most likely to be associated with a strong union?

The share of the labor force that was unionized increased from 7.4 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)

An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because

Firms will be much more willing to consent to significant wage increases when

A strike,or the threat of one,is most likely to be effective when

From 1950 to 2008,union membership has declined from more than 30 percent of the workforce to approximately 12 percent.Over this period,the share of national income going to labor

Since the demand for a narrowly defined product class (Fords,for example)is more elastic than the demand for a broadly defined product class (all automobiles),a union will be better able to raise the wages of its members without causing a reduction in their employment when

What is the primary source of higher real wages?

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