Question 1

Which of the following would increase the demand for union labor?

Accepted Answer

A)  Increasing worker productivity 
B)  Increasing the demand for union made goods 
C)  Decreasing the demand for non-union-manufactured goods 
D)  All of the above 
A)  Increasing worker productivity 
B)  Increasing the demand for union made goods 
C)  Decreasing the demand for non-union-manufactured goods 
D)  All of the above

Question 2

The union wage differential

Accepted Answer

A)  varies substantially across employment sectors. 
B)  increases during expansions. 
C)  has remained fairly constant over the past 30 years. 
D)  is greater for private sector employees than for government sector workers. 
A)  varies substantially across employment sectors. 
B)  increases during expansions. 
C)  has remained fairly constant over the past 30 years. 
D)  is greater for private sector employees than for government sector workers.

Question 3

When workers are paid a wage that is less than their contribution to a monopsonist's revenues,

Accepted Answer

A)  this is sometimes referred to monopsonistic exploitation. 
B)  this is sometimes referred to as an incentive. 
C)  they seek part time employment. 
D)  they file a grievance with their union representative. 
A)  this is sometimes referred to monopsonistic exploitation. 
B)  this is sometimes referred to as an incentive. 
C)  they seek part time employment. 
D)  they file a grievance with their union representative.

Question 4

Which of the following is true about unions?

Accepted Answer

A)  Unions in some settings are associated with increased productivity. 
B)  Unions in some settings have been effective in promoting general social legislation. 
C)  Both A and B are correct. 
D)  Neither A nor B is correct. 
A)  Unions in some settings are associated with increased productivity. 
B)  Unions in some settings have been effective in promoting general social legislation. 
C)  Both A and B are correct. 
D)  Neither A nor B is correct.

Question 5

The Taft-Hartley Act made all of the following illegal EXCEPT

Accepted Answer

A)  jurisdictional disputes. 
B)  the Congress of Industrial Organizations. 
C)  make-to-work laws. 
D)  closed shops. 
A)  jurisdictional disputes. 
B)  the Congress of Industrial Organizations. 
C)  make-to-work laws. 
D)  closed shops.

Question 6

A jurisdictional dispute means that

Accepted Answer

A)  members of a union disagree on the outcome of union elections. 
B)  a higher court reversed the decision of a lower court in a case brought by a union. 
C)  a union leadership and membership cannot agree on an issue. 
D)  two unions disagree on which should represent workers in a particular industry. 
A)  members of a union disagree on the outcome of union elections. 
B)  a higher court reversed the decision of a lower court in a case brought by a union. 
C)  a union leadership and membership cannot agree on an issue. 
D)  two unions disagree on which should represent workers in a particular industry.

Question 7

Other things equal, granting unemployment benefits or welfare benefits to striking workers

Accepted Answer

A)  reduces the likelihood of a strike since management will be more cooperative. 
B)  reduces the costs of a strike to workers and will increase their willingness to strike. 
C)  reduces the likelihood of a strike since union workers make wages significantly above unemployment benefits or welfare payments. 
D)  increases the willingness of management to permit a strike. 
A)  reduces the likelihood of a strike since management will be more cooperative. 
B)  reduces the costs of a strike to workers and will increase their willingness to strike. 
C)  reduces the likelihood of a strike since union workers make wages significantly above unemployment benefits or welfare payments. 
D)  increases the willingness of management to permit a strike.

Question 8

-If a union negotiated a wage above the market equilibrium wage, we would find

Accepted Answer

A)  a surplus of laborers at the negotiated wage. 
B)  a shortage of laborers at the negotiated wage. 
C)  higher efficiency of labor at the negotiated wage. 
D)  lower worker productivity at the negotiated wage. 
A)  a surplus of laborers at the negotiated wage. 
B)  a shortage of laborers at the negotiated wage. 
C)  higher efficiency of labor at the negotiated wage. 
D)  lower worker productivity at the negotiated wage.

Question 9

Collective bargaining

Accepted Answer

A)  has nothing to do with fringe benefits. 
B)  is bargaining between unions and management. 
C)  is illegal in many states. 
D)  is practiced in non-union related disputes. 
A)  has nothing to do with fringe benefits. 
B)  is bargaining between unions and management. 
C)  is illegal in many states. 
D)  is practiced in non-union related disputes.

Question 10

A business enterprise in which employees must belong to the union before they can be hired is

Accepted Answer

A)  a closed shop. 
B)  a union shop. 
C)  a jurisdictional dispute. 
D)  an industrial union. 
A)  a closed shop. 
B)  a union shop. 
C)  a jurisdictional dispute. 
D)  an industrial union.

Question 11

Bilateral monopoly exists when

Accepted Answer

A)  a single buyer confronts a single seller. 
B)  there are two monopolistic buyers trying to buy resources. 
C)  two labor unions are trying to represent the same group of workers. 
D)  a firm is both a monopoly in its output market and a monopsonist in its input market. 
A)  a single buyer confronts a single seller. 
B)  there are two monopolistic buyers trying to buy resources. 
C)  two labor unions are trying to represent the same group of workers. 
D)  a firm is both a monopoly in its output market and a monopsonist in its input market.

Question 12

If a single supplier of labor, such as a union, were supplying labor to a single monopsonistic employer, this is referred to as a(n)

Accepted Answer

A)  bilateral monopoly. 
B)  trilateral monopoly. 
C)  total monopsony. 
D)  collective monopoly. 
A)  bilateral monopoly. 
B)  trilateral monopoly. 
C)  total monopsony. 
D)  collective monopoly.

Question 13

A union-sponsored television campaign urging U.S. consumers to "Look for the union label" is designed to

Accepted Answer

A)  increase the productivity of union labor. 
B)  increase the derived demand for union labor by shifting consumer preferences in favor of union-made goods. 
C)  raise wages by restricting the supply of union workers. 
D)  remind consumers that if they do not buy union-made goods, unions will strike. 
A)  increase the productivity of union labor. 
B)  increase the derived demand for union labor by shifting consumer preferences in favor of union-made goods. 
C)  raise wages by restricting the supply of union workers. 
D)  remind consumers that if they do not buy union-made goods, unions will strike.

Question 14

The other name for the National Labor Relations Act of 1935 is

Accepted Answer

A)  the Wagner Act. 
B)  the Taft-Hartley Act. 
C)  the Clayton Act. 
D)  the Wheeler-Lea Act. 
A)  the Wagner Act. 
B)  the Taft-Hartley Act. 
C)  the Clayton Act. 
D)  the Wheeler-Lea Act.

Question 15

Unions tend to want import restrictions because

Accepted Answer

A)  imports are usually of inferior quality. 
B)  they can increase the wages for union workers by increasing the productivity of union workers when the workers aren't worried about foreign competition. 
C)  the restrictions also reduce the number of immigrants that can enter the country and decrease the supply of nonunion labor. 
D)  the restrictions decrease the demand for non-union made goods, increasing the demand for union made goods. 
A)  imports are usually of inferior quality. 
B)  they can increase the wages for union workers by increasing the productivity of union workers when the workers aren't worried about foreign competition. 
C)  the restrictions also reduce the number of immigrants that can enter the country and decrease the supply of nonunion labor. 
D)  the restrictions decrease the demand for non-union made goods, increasing the demand for union made goods.

Question 16

Monopsonistic exploitation is

Accepted Answer

A)  measured by the area above the supply curve but below the wage paid. 
B)  the difference between the marginal revenue product of a worker and the wage received by the worker. 
C)  measured by the height of the supply curve of labor. 
D)  the cost to society from unions. 
A)  measured by the area above the supply curve but below the wage paid. 
B)  the difference between the marginal revenue product of a worker and the wage received by the worker. 
C)  measured by the height of the supply curve of labor. 
D)  the cost to society from unions.

Question 17

If you want to become an actor, and you must join the Screen Actors Guild after your first job, the Screen Actors Guild is 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 18

A monopsonistic employer faces a

Accepted Answer

A)  perfectly elastic labor supply curve. 
B)  perfectly inelastic labor supply curve. 
C)  MFC curve that is greater than the wage rate at each quantity of labor. 
D)  MFC curve that is less than the wage rate at each quantity of labor. 
A)  perfectly elastic labor supply curve. 
B)  perfectly inelastic labor supply curve. 
C)  MFC curve that is greater than the wage rate at each quantity of labor. 
D)  MFC curve that is less than the wage rate at each quantity of labor.

Question 19

Featherbedding is the term for

Accepted Answer

A)  any practice that forces employers to use more labor than they would otherwise. 
B)  training programs initiated by unions to make their less-skilled members more productive. 
C)  the practice of trying to recruit union members among public employees. 
D)  attempts by management to eliminate a union. 
A)  any practice that forces employers to use more labor than they would otherwise. 
B)  training programs initiated by unions to make their less-skilled members more productive. 
C)  the practice of trying to recruit union members among public employees. 
D)  attempts by management to eliminate a union.

Question 20

The AFL and CIO merged because it was thought that

Accepted Answer

A)  organized labor would grow faster as a result. 
B)  union pension funds would shrink as a result. 
C)  strikes could be averted. 
D)  managers would be more sympathetic to unions. 
A)  organized labor would grow faster as a result. 
B)  union pension funds would shrink as a result. 
C)  strikes could be averted. 
D)  managers would be more sympathetic to unions.

Exam 29: Unions and Labor Market Monopoly Power

Which of the following would increase the demand for union labor?

The union wage differential

When workers are paid a wage that is less than their contribution to a monopsonist's revenues,

Which of the following is true about unions?

The Taft-Hartley Act made all of the following illegal EXCEPT

A jurisdictional dispute means that

Other things equal, granting unemployment benefits or welfare benefits to striking workers

-If a union negotiated a wage above the market equilibrium wage, we would find

Collective bargaining

A business enterprise in which employees must belong to the union before they can be hired is

Bilateral monopoly exists when

If a single supplier of labor, such as a union, were supplying labor to a single monopsonistic employer, this is referred to as a(n)

A union-sponsored television campaign urging U.S. consumers to "Look for the union label" is designed to

The other name for the National Labor Relations Act of 1935 is

Unions tend to want import restrictions because

Monopsonistic exploitation is

If you want to become an actor, and you must join the Screen Actors Guild after your first job, the Screen Actors Guild is a(n)

A monopsonistic employer faces a

Featherbedding is the term for

The AFL and CIO merged because it was thought that

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