Question 1

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.

Question 2

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 non-union 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 non-union sector than those same firms would hire if there was no union sector. 
E) total surplus added between the union sector and the non-union 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 non-union 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 non-union sector than those same firms would hire if there was no union sector. 
E) total surplus added between the union sector and the non-union sector is the same as total surplus when there is no union sector.

Question 3

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 4

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

Accepted Answer

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

Question 5

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 6

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 which 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 which 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.

Question 7

Right- to-work laws

Accepted Answer

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

Question 8

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

Accepted Answer

A) Unions typically attract the most productive workers to the application pool. 
B) Non-union firms may pay higher wages in order to prevent its workers from unionizing. 
C) Non-union 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 non-union wage. 
D) Unions target high-paying firms. 
E) The union wage gap can be over-estimated, but never underestimated. 
A) Unions typically attract the most productive workers to the application pool. 
B) Non-union firms may pay higher wages in order to prevent its workers from unionizing. 
C) Non-union 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 non-union wage. 
D) Unions target high-paying firms. 
E) The union wage gap can be over-estimated, but never underestimated.

Question 9

Featherbedding refers to

Accepted Answer

A) negotiating better fringe benefits than non-union 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 non-union 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 10

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 pro-cyclical. 
D) Strike duration is generally pro-cyclical. 
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 pro-cyclical. 
D) Strike duration is generally pro-cyclical. 
E) If the union makes wage offers, it will likely do so according to a downward-sloping resistance curve.

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

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:

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

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

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

Which of the following best defines final-offer arbitration?

Right- to-work laws

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

Featherbedding refers to

Which of the following is not associated with strikes?

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

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

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:

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

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

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

Which of the following best defines final-offer arbitration?

Right- to-work laws

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

Featherbedding refers to

Which of the following is not associated with strikes?

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