Question 1

According to the text, private sector union membership in the United States is

Accepted Answer

A)  about 8 percent of the private-sector labor force. 
B)  zero. 
C)  about 25 percent of all U.S. workers. 
D)  about 12 percent of the entire workforce. 
A)  about 8 percent of the private-sector labor force. 
B)  zero. 
C)  about 25 percent of all U.S. workers. 
D)  about 12 percent of the entire workforce.

Question 2

The impact of a strike is limited to the ability of the union to

Accepted Answer

A)  prevent replacement workers from continuing their work. 
B)  lower its wage demands of non-union members. 
C)  control the pension fund. 
D)  none of the above. 
A)  prevent replacement workers from continuing their work. 
B)  lower its wage demands of non-union members. 
C)  control the pension fund. 
D)  none of the above.

Question 3

The American Federation of Labor was formed in 1886 as a dissident group from the

Accepted Answer

A)  Knights of Labor. 
B)  Knights of Pythias. 
C)  Masonic Lodge. 
D)  Knights of Columbus. 
A)  Knights of Labor. 
B)  Knights of Pythias. 
C)  Masonic Lodge. 
D)  Knights of Columbus.

Question 4

Methods that are sometimes used by unions to increase wages of union workers include I. advertising to increase the demand for union-made goods.
II) campaigning against imports.

Accepted Answer

A)  I only 
B)  II only 
C)  Both I and II 
D)  Neither I nor II 
A)  I only 
B)  II only 
C)  Both I and II 
D)  Neither I nor II

Question 5

The primary purpose of a strike by labor unions is to

Accepted Answer

A)  force the firm out of business. 
B)  extract from the firm better and improved conditions of work or contract terms. 
C)  secure a larger market share for the firm. 
D)  ensure they get paid for striking. 
A)  force the firm out of business. 
B)  extract from the firm better and improved conditions of work or contract terms. 
C)  secure a larger market share for the firm. 
D)  ensure they get paid for striking.

Question 6

In an analytical sense, unions can be thought of as

Accepted Answer

A)  setters of minimum wages. 
B)  monopoly buyers of workers. 
C)  generators of inflation. 
D)  monopsonies. 
A)  setters of minimum wages. 
B)  monopoly buyers of workers. 
C)  generators of inflation. 
D)  monopsonies.

Question 7

A closed shop is one in which

Accepted Answer

A)  a union is prohibited. 
B)  some members belong to the union while others do not. 
C)  belonging to a union is a condition of employment. 
D)  the union is a co-manager of the day-to-day operations of the firm. 
A)  a union is prohibited. 
B)  some members belong to the union while others do not. 
C)  belonging to a union is a condition of employment. 
D)  the union is a co-manager of the day-to-day operations of the firm.

Question 8

A situation in which union membership is required before a person can be hired is a

Accepted Answer

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

Question 9

What was the overall trend of U.S. union membership beginning the 1960s? What was the main reason behind that trend?

Accepted Answer

Since the 1960s, union membership in the

Question 10

A firm that is a monopolist in the output market and a monopsonist in the input market

Accepted Answer

A)  will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. 
B)  will restrict the level of output but not that of employment compared to the perfectly competitive case. 
C)  will hire less labor but pay the same wage compared to the perfectly competitive case. 
D)  will hire less labor and pay a lower wage compared to the perfectly competitive case. 
A)  will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. 
B)  will restrict the level of output but not that of employment compared to the perfectly competitive case. 
C)  will hire less labor but pay the same wage compared to the perfectly competitive case. 
D)  will hire less labor and pay a lower wage compared to the perfectly competitive case.

Question 11

Which of the following is a correct statement about unions in the United States?

Accepted Answer

A)  The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. 
B)  Half of the top ten U.S. unions now have members who work in service and government occupations. 
C)  Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. 
D)  Half of all U.S. workers are union members. 
A)  The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. 
B)  Half of the top ten U.S. unions now have members who work in service and government occupations. 
C)  Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. 
D)  Half of all U.S. workers are union members.

Question 12

The largest labor union in the United States is the

Accepted Answer

A)  National Education Association. 
B)  International Brotherhood of Teamsters. 
C)  United Food and Commercial Workers International Union. 
D)  Service Employees International Union. 
A)  National Education Association. 
B)  International Brotherhood of Teamsters. 
C)  United Food and Commercial Workers International Union. 
D)  Service Employees International Union.

Question 13

Featherbedding refers to

Accepted Answer

A)  the practice of laying off union activists. 
B)  increased international competition and its negative impact on trade unions. 
C)  union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. 
D)  the practice of inducing a firm to use more than the cost-minimizing level of labor. 
A)  the practice of laying off union activists. 
B)  increased international competition and its negative impact on trade unions. 
C)  union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. 
D)  the practice of inducing a firm to use more than the cost-minimizing level of labor.

Question 14

Research indicates that on average, state government unions have

Accepted Answer

A)  raised wages to 20 percent above nonunionized government workers. 
B)  raised wages 25 to 30 percent above nonunionized private-sector and government workers. 
C)  raised wages about 100 percent above similar workers in the nonunion private sector. 
D)  have not significantly raised wages above similar workers in the nonunion sector. 
A)  raised wages to 20 percent above nonunionized government workers. 
B)  raised wages 25 to 30 percent above nonunionized private-sector and government workers. 
C)  raised wages about 100 percent above similar workers in the nonunion private sector. 
D)  have not significantly raised wages above similar workers in the nonunion sector.

Question 15

The Congress of Industrial Organizations (CIO) was formed in 1938 by

Accepted Answer

A)  John L. Lewis. 
B)  Samuel Gompers. 
C)  Walter Reuther. 
D)  Ralph Nader. 
A)  John L. Lewis. 
B)  Samuel Gompers. 
C)  Walter Reuther. 
D)  Ralph Nader.

Question 16

The monopsonistic exploitation of labor refers to

Accepted Answer

A)  the reduction in total output from monopoly in the product market. 
B)  the union wage differential. 
C)  workers being paid a wage less than their marginal revenue product. 
D)  the reduction in employment resulting from union wage setting. 
A)  the reduction in total output from monopoly in the product market. 
B)  the union wage differential. 
C)  workers being paid a wage less than their marginal revenue product. 
D)  the reduction in employment resulting from union wage setting.

Question 17

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

Accepted Answer

A)  there will be a surplus of jobs. 
B)  antitrust laws become effective. 
C)  there will be downward pressure on the wage rate until equilibrium is established. 
D)  there will be an excess supply of labor. 
A)  there will be a surplus of jobs. 
B)  antitrust laws become effective. 
C)  there will be downward pressure on the wage rate until equilibrium is established. 
D)  there will be an excess supply of labor.

Question 18

The first type of labor unions that emerged in the United States were

Accepted Answer

A)  industrial unions. 
B)  craft unions. 
C)  professional unions. 
D)  transportation unions. 
A)  industrial unions. 
B)  craft unions. 
C)  professional unions. 
D)  transportation unions.

Question 19

A business enterprise that allows the hiring of nonunion members conditional on their joining the union 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 20

The purpose of a strike is

Accepted Answer

A)  to obtain higher wages for union members only. 
B)  to solve jurisdictional disputes. 
C)  to obtain a closed shop. 
D)  to force management to accept the union's proposed contract terms. 
A)  to obtain higher wages for union members only. 
B)  to solve jurisdictional disputes. 
C)  to obtain a closed shop. 
D)  to force management to accept the union's proposed contract terms.

Exam 29: Unions and Labor Market Monopoly Power

According to the text, private sector union membership in the United States is

The impact of a strike is limited to the ability of the union to

The American Federation of Labor was formed in 1886 as a dissident group from the

Methods that are sometimes used by unions to increase wages of union workers include I. advertising to increase the demand for union-made goods. II) campaigning against imports.

The primary purpose of a strike by labor unions is to

In an analytical sense, unions can be thought of as

A closed shop is one in which

A situation in which union membership is required before a person can be hired is a

What was the overall trend of U.S. union membership beginning the 1960s? What was the main reason behind that trend?

A firm that is a monopolist in the output market and a monopsonist in the input market

Which of the following is a correct statement about unions in the United States?

The largest labor union in the United States is the

Featherbedding refers to

Research indicates that on average, state government unions have

The Congress of Industrial Organizations (CIO) was formed in 1938 by

The monopsonistic exploitation of labor refers to

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

The first type of labor unions that emerged in the United States were

A business enterprise that allows the hiring of nonunion members conditional on their joining the union is

The purpose of a strike is

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