Question 1

Which of the following is NOT correct regarding the status of U.S. labor unions?

Accepted Answer

A)  Today fewer than one in eight workers is a union member. 
B)  A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. 
C)  Greater domestic and global competition has had a part in bringing about a decline in unions. 
D)  Global trade has increased the number of union members in the United States. 
A)  Today fewer than one in eight workers is a union member. 
B)  A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. 
C)  Greater domestic and global competition has had a part in bringing about a decline in unions. 
D)  Global trade has increased the number of union members in the United States.

Question 2

-In the above figure, which wage rate will yield the highest wage rates for particular workers?

Accepted Answer

A)    
B)    
C)    
D)    -   
A)    
B)    
C)    
D)    -

Question 3

A benefit of unions is that they

Accepted Answer

A)  increase firm profits. 
B)  increase the stability of the workforce. 
C)  increase wage inequality. 
D)  restrict the labor market. 
A)  increase firm profits. 
B)  increase the stability of the workforce. 
C)  increase wage inequality. 
D)  restrict the labor market.

Question 4

Any practice that forces employers to use more labor than they would otherwise use is

Accepted Answer

A)  closed shop. 
B)  monopolistic exploitation. 
C)  a craft union. 
D)  featherbedding. 
A)  closed shop. 
B)  monopolistic exploitation. 
C)  a craft union. 
D)  featherbedding.

Question 5

When a group of workers forms a union, they introduce an element of

Accepted Answer

A)  pure competition into the labor market. 
B)  monopoly into the labor market. 
C)  monopoly into the product market. 
D)  monopsony into the product market. 
A)  pure competition into the labor market. 
B)  monopoly into the labor market. 
C)  monopoly into the product market. 
D)  monopsony into the product market.

Question 6

Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, are called

Accepted Answer

A)  craft unions. 
B)  industrial unions. 
C)  collective unions. 
D)  closed unions. 
A)  craft unions. 
B)  industrial unions. 
C)  collective unions. 
D)  closed unions.

Question 7

A business enterprise in which employees must belong to the union before they can be hired is called a(n)

Accepted Answer

A)  craft union. 
B)  industrial union. 
C)  closed shop. 
D)  union shop. 
A)  craft union. 
B)  industrial union. 
C)  closed shop. 
D)  union shop.

Question 8

The leadership of unions must recognize that they face

Accepted Answer

A)  an economic system that is hostile to the interests of workers. 
B)  a no-win situation whenever they think a strike is necessary. 
C)  a fundamental trade-off between higher wages for members and higher taxes for members. 
D)  a fundamental trade-off between higher wages for members and fewer jobs for members. 
A)  an economic system that is hostile to the interests of workers. 
B)  a no-win situation whenever they think a strike is necessary. 
C)  a fundamental trade-off between higher wages for members and higher taxes for members. 
D)  a fundamental trade-off between higher wages for members and fewer jobs for members.

Question 9

The United Auto Workers is an example of

Accepted Answer

A)  a public-sector union. 
B)  a craft union. 
C)  an industrial union. 
D)  a socialist union. 
A)  a public-sector union. 
B)  a craft union. 
C)  an industrial union. 
D)  a socialist union.

Question 10

Exploitation due to a single buyer in the input market is known as

Accepted Answer

A)  monopoly exploitation. 
B)  monopsonistic exploitation. 
C)  Marxian exploitation. 
D)  the result of closed shops. 
A)  monopoly exploitation. 
B)  monopsonistic exploitation. 
C)  Marxian exploitation. 
D)  the result of closed shops.

Question 11

What is it called when the price paid for a variable input is less than its marginal revenue product?

Accepted Answer

A)  Bilateral monopoly 
B)  Monopsonistic exploitation 
C)  Monopolistic exploitation 
D)  Featherbedding 
A)  Bilateral monopoly 
B)  Monopsonistic exploitation 
C)  Monopolistic exploitation 
D)  Featherbedding

Question 12

A bilateral monopoly exists when there is a

Accepted Answer

A)  single buyer and many sellers in the market. 
B)  single seller and many buyers in the market. 
C)  large number of buyers and sellers in the market. 
D)  single buyer and a single seller in the market. 
A)  single buyer and many sellers in the market. 
B)  single seller and many buyers in the market. 
C)  large number of buyers and sellers in the market. 
D)  single buyer and a single seller in the market.

Question 13

When there is only one buyer in a market, there is a

Accepted Answer

A)  buyer's monopoly. 
B)  monopoly. 
C)  monopsony. 
D)  buyer's cooperative. 
A)  buyer's monopoly. 
B)  monopoly. 
C)  monopsony. 
D)  buyer's cooperative.

Question 14

Why might a union find that attaining the goal of employing all its members and the goal of maximizing total union wage receipts to be incompatible objectives?

Accepted Answer

To ensure that all of its members are em

Question 15

-In the above table, if the marginal revenue product is $14, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 16

-In the above figure, which wage rate yields the highest union employment?

Accepted Answer

A)    
B)    
C)    
D)    -   
A)    
B)    
C)    
D)    -

Question 17

-Use the above table. If the marginal revenue product is $20, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 18

A monopsonist is

Accepted Answer

A)  a firm with monopoly power in the local area. 
B)  a firm that has a unionized labor force. 
C)  a single seller of an input. 
D)  a single buyer of an input. 
A)  a firm with monopoly power in the local area. 
B)  a firm that has a unionized labor force. 
C)  a single seller of an input. 
D)  a single buyer of an input.

Question 19

-Refer to the above figure. Suppose there are   workers in the union, and the union wants all of its workers to have a job. It will set the wage rate at

Accepted Answer

A)    . 
B)    . 
C)    . 
D)    . 
A)    . 
B)    . 
C)    . 
D)    .

Question 20

-In the above table, what is the marginal factor cost of the 2nd worker?

Accepted Answer

A)  $24 
B)  $14 
C)  $64 
D)  $12 
A)  $24 
B)  $14 
C)  $64 
D)  $12

Exam 29: Unions and Labor Market Monopoly Power

Which of the following is NOT correct regarding the status of U.S. labor unions?

-In the above figure, which wage rate will yield the highest wage rates for particular workers?

A benefit of unions is that they

Any practice that forces employers to use more labor than they would otherwise use is

When a group of workers forms a union, they introduce an element of

Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, are called

A business enterprise in which employees must belong to the union before they can be hired is called a(n)

The leadership of unions must recognize that they face

The United Auto Workers is an example of

Exploitation due to a single buyer in the input market is known as

What is it called when the price paid for a variable input is less than its marginal revenue product?

A bilateral monopoly exists when there is a

When there is only one buyer in a market, there is a

Why might a union find that attaining the goal of employing all its members and the goal of maximizing total union wage receipts to be incompatible objectives?

-In the above table, if the marginal revenue product is $14, how many workers will the profit maximizing monopsonist hire?

-In the above figure, which wage rate yields the highest union employment?

-Use the above table. If the marginal revenue product is $20, how many workers will the profit maximizing monopsonist hire?

A monopsonist is

-Refer to the above figure. Suppose there are workers in the union, and the union wants all of its workers to have a job. It will set the wage rate at

-In the above table, what is the marginal factor cost of the 2nd worker?

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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