Question 1

-In the above figure, which wage rate will maximize union members' income?

Accepted Answer

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

Question 2

The 1935 Act granting workers the right to form unions and bargain collectively is known as

Accepted Answer

A)  the National Labor Relations Act or Wagner Act. 
B)  the Wheeler Act. 
C)  the Taft-Hartley Act. 
D)  the Modernization Act. 
A)  the National Labor Relations Act or Wagner Act. 
B)  the Wheeler Act. 
C)  the Taft-Hartley Act. 
D)  the Modernization Act.

Question 3

Distinguish between craft unions and industrial unions.

Accepted Answer

Craft unions are composed of workers who

Question 4

-Refer to the above figure. The monopsonistic exploitation is

Accepted Answer

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

Question 5

The figure illustrates all of the following EXCEPT

Accepted Answer

A)  if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point   an excess quantity of labor will be supplied. 
B)  if the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded. 
C)  there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment-a smaller number of positions. 
D)  at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where   is greater then   . 
A)  if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point   an excess quantity of labor will be supplied. 
B)  if the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded. 
C)  there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment-a smaller number of positions. 
D)  at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where   is greater then   .

Question 6

If a union negotiates and obtains a wage rate above the competitive wage rate,

Accepted Answer

A)  it must find a way to make workers more productive. 
B)  employment in the union sector will increase relative to employment in the nonunion sector. 
C)  it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector. 
D)  unemployment will increase in the nonunion sector relative to the union sector. 
A)  it must find a way to make workers more productive. 
B)  employment in the union sector will increase relative to employment in the nonunion sector. 
C)  it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector. 
D)  unemployment will increase in the nonunion sector relative to the union sector.

Question 7

Featherbedding means that

Accepted Answer

A)  company management receives a cut from the collected union wages. 
B)  employers are force to hire apprentices. 
C)  employers are forced to hire more workers than they want to. 
D)  a union can join a sympathy strike. 
A)  company management receives a cut from the collected union wages. 
B)  employers are force to hire apprentices. 
C)  employers are forced to hire more workers than they want to. 
D)  a union can join a sympathy strike.

Question 8

-In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?

Accepted Answer

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

Question 9

Marginal factor cost is

Accepted Answer

A)  the change in total costs due to a one-unit change in the quantity of the good produced. 
B)  the change in total costs due to a one-unit increase in the variable input. 
C)  the change in the price of an input when an additional unit of the input is hired. 
D)  the marginal cost of changing the rate of production in the long run. 
A)  the change in total costs due to a one-unit change in the quantity of the good produced. 
B)  the change in total costs due to a one-unit increase in the variable input. 
C)  the change in the price of an input when an additional unit of the input is hired. 
D)  the marginal cost of changing the rate of production in the long run.

Question 10

Unions face a trade-off between higher wages and

Accepted Answer

A)  fewer available positions. 
B)  more available positions. 
C)  equipment. 
D)  none of the above. 
A)  fewer available positions. 
B)  more available positions. 
C)  equipment. 
D)  none of the above.

Question 11

The U.S. labor movement started

Accepted Answer

A)  with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing. 
B)  during the Civil War. 
C)  after World War I. 
D)  with the Knights of Labor, an organized group of both skilled and unskilled workers. 
A)  with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing. 
B)  during the Civil War. 
C)  after World War I. 
D)  with the Knights of Labor, an organized group of both skilled and unskilled workers.

Question 12

If the labor supply curve faced by a firm is rising, the marginal factor cost curve of labor must be

Accepted Answer

A)  rising and below the supply curve. 
B)  rising and above the supply curve. 
C)  equal to the supply curve. 
D)  horizontal. 
A)  rising and below the supply curve. 
B)  rising and above the supply curve. 
C)  equal to the supply curve. 
D)  horizontal.

Question 13

Which of the following is the largest union in the United States?

Accepted Answer

A)  International Brotherhood of Teamsters 
B)  International Brotherhood of Electrical Workers 
C)  National Education Association 
D)  American Federation of State, County, and Municipal Employees 
A)  International Brotherhood of Teamsters 
B)  International Brotherhood of Electrical Workers 
C)  National Education Association 
D)  American Federation of State, County, and Municipal Employees

Question 14

-Refer to the above figure. Under monopsony, the wage rate will be

Accepted Answer

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

Question 15

If you get a job and are never required to join the union, 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.

Question 16

-Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be

Accepted Answer

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

Question 17

-According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  4 
B)  5 
C)  6 
D)  7 
A)  4 
B)  5 
C)  6 
D)  7

Question 18

A primary objective of labor unions is to

Accepted Answer

A)  secure equal pay for its members. 
B)  have equal power with their employer. 
C)  seek better pay and improved work conditions. 
D)  all of the above 
E)  none of the above 
A)  secure equal pay for its members. 
B)  have equal power with their employer. 
C)  seek better pay and improved work conditions. 
D)  all of the above 
E)  none of the above

Question 19

Temporary or permanent workers hired to replace striking union workers are known as

Accepted Answer

A)  strikebreakers. 
B)  backbreakers. 
C)  rationers. 
D)  strikeaiders. 
A)  strikebreakers. 
B)  backbreakers. 
C)  rationers. 
D)  strikeaiders.

Question 20

Right-to-work laws

Accepted Answer

A)  make it illegal to require union membership as a condition of continuing employment in a particular firm. 
B)  make it illegal to require a union member to work abroad. 
C)  make it illegal for a state to pass any laws regarding union membership. 
D)  make a closed shop arrangement a legal condition that allows employees to obtain a particular job. 
A)  make it illegal to require union membership as a condition of continuing employment in a particular firm. 
B)  make it illegal to require a union member to work abroad. 
C)  make it illegal for a state to pass any laws regarding union membership. 
D)  make a closed shop arrangement a legal condition that allows employees to obtain a particular job.

Exam 29: Unions and Labor Market Monopoly Power

-In the above figure, which wage rate will maximize union members' income?

The 1935 Act granting workers the right to form unions and bargain collectively is known as

Distinguish between craft unions and industrial unions.

-Refer to the above figure. The monopsonistic exploitation is

The figure illustrates all of the following EXCEPT

If a union negotiates and obtains a wage rate above the competitive wage rate,

Featherbedding means that

-In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?

Marginal factor cost is

Unions face a trade-off between higher wages and

The U.S. labor movement started

If the labor supply curve faced by a firm is rising, the marginal factor cost curve of labor must be

Which of the following is the largest union in the United States?

-Refer to the above figure. Under monopsony, the wage rate will be

If you get a job and are never required to join the union, this is known as a(n)

-Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be

-According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?

A primary objective of labor unions is to

Temporary or permanent workers hired to replace striking union workers are known as

Right-to-work laws

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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