Question 1

If you get a job and are required to join the union within a month, this is known as a(n)

Accepted Answer

A)  closed shop. 
B)  open shop. 
C)  agency shop. 
D)  union shop. 
A)  closed shop. 
B)  open shop. 
C)  agency shop. 
D)  union shop. D

Question 2

"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?

Accepted Answer

Disagree. The hourly wage earned a typical union worker is about $2.25 higher than the hourly wage earned a typical nonunion worker. However, the effect of a higher hourly wage rate on annual income is more than offset by the effect of fewer hours that the average union employee works as compared to the average nonunion worker. As a result, the annual income of a typical union worker is lower than that of the average nonunion worker.

Question 3

The Service Employees International Union is an example of a(n)

Accepted Answer

A)  guild. 
B)  craft union. 
C)  industrial union. 
D)  public-sector union. 
A)  guild. 
B)  craft union. 
C)  industrial union. 
D)  public-sector union. C

Question 4

A labor union composed of workers in the same occupation is called

Accepted Answer

A)  a craft union. 
B)  an industrial union. 
C)  a company union. 
D)  a closed shop. 
A)  a craft union. 
B)  an industrial union. 
C)  a company union. 
D)  a closed shop.

Question 5

A union can achieve higher wages without accepting lower levels of employment of members by

Accepted Answer

A)  striking. 
B)  increasing the productivity of its members. 
C)  increasing the amounts of imports. 
D)  increasing the difficulty of its apprenticeship program. 
A)  striking. 
B)  increasing the productivity of its members. 
C)  increasing the amounts of imports. 
D)  increasing the difficulty of its apprenticeship program.

Question 6

A profit-maximizing monopsonist will hire workers up to the point at which

Accepted Answer

A)  W = MRP. 
B)  MRP = MFC. 
C)  W = MFC. 
D)  W = MRP = MFC. 
A)  W = MRP. 
B)  MRP = MFC. 
C)  W = MFC. 
D)  W = MRP = MFC.

Question 7

-Use the above table. The MFC of the 4th worker is

Accepted Answer

A)  $5. 
B)  $6.25. 
C)  $25. 
D)  $40. 
A)  $5. 
B)  $6.25. 
C)  $25. 
D)  $40.

Question 8

-Refer to the above figure. Suppose there are   workers in the union. If the union wants to set a wage rate of   , it must

Accepted Answer

A)  determine which of its members will earn   and which will earn   . 
B)  accept that   -   members will not be able to find work in the industry. 
C)  accept that   -   workers will have to get a lower wage equal to   and   -   workers will have to get a wage of   . 
D)  determine the most efficient way to get the firms to accept the wage and hire all   workers. 
A)  determine which of its members will earn   and which will earn   . 
B)  accept that   -   members will not be able to find work in the industry. 
C)  accept that   -   workers will have to get a lower wage equal to   and   -   workers will have to get a wage of   . 
D)  determine the most efficient way to get the firms to accept the wage and hire all   workers.

Question 9

The labor market in professional baseball is an example of

Accepted Answer

A)  a bilateral monopoly. 
B)  a monopsonistic labor market. 
C)  a monopolistic labor market. 
D)  a perfectly competitive labor market. 
A)  a bilateral monopoly. 
B)  a monopsonistic labor market. 
C)  a monopolistic labor market. 
D)  a perfectly competitive labor market.

Question 10

The percentage of U.S. workers in the private sector who belong to unions is currently

Accepted Answer

A)  greater than 50 percent. 
B)  approximately 20 percent. 
C)  approximately 12 percent. 
D)  approximately 8 percent. 
A)  greater than 50 percent. 
B)  approximately 20 percent. 
C)  approximately 12 percent. 
D)  approximately 8 percent.

Question 11

A union can achieve higher wages without accepting lower levels of employment of members by

Accepted Answer

A)  promoting right-to-work laws. 
B)  increasing the demand for substitute products made by non-union labor. 
C)  increasing conflicts with management. 
D)  beginning a campaign against buying foreign imports. 
A)  promoting right-to-work laws. 
B)  increasing the demand for substitute products made by non-union labor. 
C)  increasing conflicts with management. 
D)  beginning a campaign against buying foreign imports.

Question 12

Which of the following is NOT a union wage and employment strategy?

Accepted Answer

A)  ensuring employment for all members of a union 
B)  maximizing aggregate income of workers 
C)  maximizing wage rates for some workers 
D)  minimizing the adjusted gross income of non-members 
A)  ensuring employment for all members of a union 
B)  maximizing aggregate income of workers 
C)  maximizing wage rates for some workers 
D)  minimizing the adjusted gross income of non-members

Question 13

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

Accepted Answer

A)  the quantity of labor demanded will be greater than the quantity supplied. 
B)  the quantity of labor demanded will be less than the quantity supplied. 
C)  the labor market will be in equilibrium. 
D)  it is impossible to tell whether or not the labor market will be in equilibrium without more information. 
A)  the quantity of labor demanded will be greater than the quantity supplied. 
B)  the quantity of labor demanded will be less than the quantity supplied. 
C)  the labor market will be in equilibrium. 
D)  it is impossible to tell whether or not the labor market will be in equilibrium without more information.

Question 14

A monopsonist is

Accepted Answer

A)  a single buyer. 
B)  a single seller. 
C)  one of a few firms that face a unionized labor market. 
D)  a non-profit-maximizing firm. 
A)  a single buyer. 
B)  a single seller. 
C)  one of a few firms that face a unionized labor market. 
D)  a non-profit-maximizing firm.

Question 15

-Refer to the above table. What is the marginal factor cost when the firm employs the second unit of labor?

Accepted Answer

A)  $19 
B)  $21 
C)  $36 
D)  $38 
A)  $19 
B)  $21 
C)  $36 
D)  $38

Question 16

The main difference between a monopsonist and a competitive buyer of labor is that

Accepted Answer

A)  the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers. 
B)  the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers. 
C)  the competitor is a small firm while the monopsonist is a large firm. 
D)  the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets. 
A)  the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers. 
B)  the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers. 
C)  the competitor is a small firm while the monopsonist is a large firm. 
D)  the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets.

Question 17

-In the above figure, the monopsonist will employ

Accepted Answer

A)  L2 at a wage of W2. 
B)  L2 at a wage of W3. 
C)  L1 at a wage of W1. 
D)  L1 at a wage of W3. 
A)  L2 at a wage of W2. 
B)  L2 at a wage of W3. 
C)  L1 at a wage of W1. 
D)  L1 at a wage of W3.

Question 18

-According to the above table, the marginal factor cost of the fifth worker is

Accepted Answer

A)  $30.00. 
B)  $45.00. 
C)  $60.00. 
D)  $90.00. 
A)  $30.00. 
B)  $45.00. 
C)  $60.00. 
D)  $90.00.

Question 19

Recently, two construction industry unions also left the AFL-CIO and joined with ironworkers and bricklayers unions to form

Accepted Answer

A)  the National Brotherhood of Teamsters. 
B)  the National Construction Alliance. 
C)  the American Federation of Workers. 
D)  Change to Win. 
A)  the National Brotherhood of Teamsters. 
B)  the National Construction Alliance. 
C)  the American Federation of Workers. 
D)  Change to Win.

Question 20

What can a union do in order to raise the wages of its members ?

Accepted Answer

A union can establish a wage rate above

Exam 29: Unions and Labor Market Monopoly Power

If you get a job and are required to join the union within a month, this is known as a(n)

"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?

The Service Employees International Union is an example of a(n)

A labor union composed of workers in the same occupation is called

A union can achieve higher wages without accepting lower levels of employment of members by

A profit-maximizing monopsonist will hire workers up to the point at which

-Use the above table. The MFC of the 4th worker is

-Refer to the above figure. Suppose there are workers in the union. If the union wants to set a wage rate of , it must

The labor market in professional baseball is an example of

The percentage of U.S. workers in the private sector who belong to unions is currently

A union can achieve higher wages without accepting lower levels of employment of members by

Which of the following is NOT a union wage and employment strategy?

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

A monopsonist is

-Refer to the above table. What is the marginal factor cost when the firm employs the second unit of labor?

The main difference between a monopsonist and a competitive buyer of labor is that

-In the above figure, the monopsonist will employ

-According to the above table, the marginal factor cost of the fifth worker is

Recently, two construction industry unions also left the AFL-CIO and joined with ironworkers and bricklayers unions to form

What can a union do in order to raise the wages of its members ?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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