Question 1

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. 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 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 doesn't 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 doesn't know how valuable labor is to the firm. 
E) The firm wants to minimize labor costs. D

Question 4

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

Accepted Answer

A) High wages. 
B) Steady employment. 
C) An exit voice. 
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) An exit voice. 
D) A powerful political lobby. 
E) All of these are used for advertising to members and potential members.

Question 5

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 6

An implication of the exit-voice hypothesis is that

Accepted Answer

A) union workers who earn lower wages will circumvent union leadership to ask management for pay raises. 
B) labor turnover (voluntary quits) will be lower at union firms than at non-union firms as workers can bring issues to management through their union leadership. 
C) the union wage gap will be higher for more experienced union members. 
D) dues paid by rank and file union members must increase prior to wage negotiations. 
E) dues paid by rank and file union members should be saved during stretches of labor peace in order to fund worker benefits during strikes. 
A) union workers who earn lower wages will circumvent union leadership to ask management for pay raises. 
B) labor turnover (voluntary quits) will be lower at union firms than at non-union firms as workers can bring issues to management through their union leadership. 
C) the union wage gap will be higher for more experienced union members. 
D) dues paid by rank and file union members must increase prior to wage negotiations. 
E) dues paid by rank and file union members should be saved during stretches of labor peace in order to fund worker benefits during strikes.

Question 7

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 8

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 9

Yellow-dog contracts

Accepted Answer

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

Question 10

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 solely from 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 solely from the price of the firm's good. 
E) determined completely by the firm's technology.

Question 11

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 State's 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 State's competitive advantage it had over Germany. 
E) fail to protect the rights of children who could not legally join a union.

Question 12

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 13

What is the union wage gap if the average union salary is $92,000 while the average non-union 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 14

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 tradeoff some amount of higher earnings for greater employment. 
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 tradeoff some amount of higher earnings for greater employment. 
E) unions and management secretly negotiate on the behalf of stockholders.

Question 15

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.

Question 16

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 17

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 18

Which one of the following statements is true?

Accepted Answer

A) Firms try to attract unions to their plants and factories. 
B) Unions are beneficial to all workers. 
C) Unions tend to negotiate better fringe benefits for their members than what non-union workers receive. 
D) Many workers are likely to lose their jobs when firms become unionized. 
E) A union is legally allowed to undertake any bargaining tactics that it wishes. 
A) Firms try to attract unions to their plants and factories. 
B) Unions are beneficial to all workers. 
C) Unions tend to negotiate better fringe benefits for their members than what non-union workers receive. 
D) Many workers are likely to lose their jobs when firms become unionized. 
E) A union is legally allowed to undertake any bargaining tactics that it wishes.

Question 19

Which statement best describes international comparisons of unionization rates?

Accepted Answer

A) Private sector unionization is about the same (around 20 percent) 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 percent) 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 20

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 share holders 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 share holders 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.

The wage-employment outcomes described by the contract curve

Labor unions in the United States today

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

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

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

An implication of the exit-voice hypothesis is that

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

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

Yellow-dog contracts

The labor demand curve is

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

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

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

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

The Hicks Paradox concerns the irrationality of

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

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"

Which one of the following statements is true?

Which statement best describes international comparisons of unionization rates?

A strike

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 wage-employment outcomes described by the contract curve

Labor unions in the United States today

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

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

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

An implication of the exit-voice hypothesis is that

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

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

Yellow-dog contracts

The labor demand curve is

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

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

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

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

The Hicks Paradox concerns the irrationality of

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

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"

Which one of the following statements is true?

Which statement best describes international comparisons of unionization rates?

A strike

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