Question 1

Suppose that under its collective bargaining agreement, the XYZ Co. can only hire union members in good standing at the time of hiring. XYZ Co. is

Accepted Answer

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

Question 2

Which piece of legislation allowed states to pass right-to-work laws?

Accepted Answer

A)  Wagner Act 
B)  Landrum-Griffin Act 
C)  Taft-Hartley Act 
D)  National Industrial Recovery Act 
A)  Wagner Act 
B)  Landrum-Griffin Act 
C)  Taft-Hartley Act 
D)  National Industrial Recovery Act

Question 3

If we were to compare the hourly earnings of union and nonunion workers in recent years, we would find that

Accepted Answer

A)  unions have not succeeded in raising the hourly incomes of their members above nonunion members. 
B)  unions have succeeded in raising the hourly incomes of their members above nonunion members. 
C)  state government unionized employees have earned less in hourly wages than nonunion government employee. 
D)  union members have increased their hourly incomes, but are still below the hourly incomes of nonunion members. 
A)  unions have not succeeded in raising the hourly incomes of their members above nonunion members. 
B)  unions have succeeded in raising the hourly incomes of their members above nonunion members. 
C)  state government unionized employees have earned less in hourly wages than nonunion government employee. 
D)  union members have increased their hourly incomes, but are still below the hourly incomes of nonunion members.

Question 4

A union could raise wages without causing unemployment of union members if it can increase demand for union labor. How might this goal be achieved?

Accepted Answer

If unions can increase the labor product

Question 5

Which of the following correctly describes the trend in U.S. union membership?

Accepted Answer

A)  Union membership has been decreasing steadily since the 1930s. 
B)  Union membership decreased from 1930 - 1960, but has been increasing steadily since. 
C)  Union membership peaked in the 1960s and has been decreasing steadily since. 
D)  Union membership declined until the 1980s, but has been increasing steadily since. 
A)  Union membership has been decreasing steadily since the 1930s. 
B)  Union membership decreased from 1930 - 1960, but has been increasing steadily since. 
C)  Union membership peaked in the 1960s and has been decreasing steadily since. 
D)  Union membership declined until the 1980s, but has been increasing steadily since.

Question 6

An example of featherbedding is

Accepted Answer

A)  the union practice that requires younger workers to be laid off first in a recession. 
B)  a requirement that all construction workers working on government-funded construction projects must be paid union wages. 
C)  employer-paid dental insurance negotiated by the union. 
D)  a requirement on railroads to keep a fireman on board after the introduction of diesel engines. 
A)  the union practice that requires younger workers to be laid off first in a recession. 
B)  a requirement that all construction workers working on government-funded construction projects must be paid union wages. 
C)  employer-paid dental insurance negotiated by the union. 
D)  a requirement on railroads to keep a fireman on board after the introduction of diesel engines.

Question 7

Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that

Accepted Answer

A)  unemployment of union workers must have increased. 
B)  unemployment of nonunion workers must have increased. 
C)  productivity of union workers must be greater than the productivity of nonunion workers. 
D)  Any of the above are possible and we cannot tell which without having more information. 
A)  unemployment of union workers must have increased. 
B)  unemployment of nonunion workers must have increased. 
C)  productivity of union workers must be greater than the productivity of nonunion workers. 
D)  Any of the above are possible and we cannot tell which without having more information.

Question 8

Which of the following is one of the reasons for declining union membership in the United States?

Accepted Answer

A)  Much of the unskilled, nonunionized work in the United States is done by immigrant workers who are undocumented. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  The repeal of the Taft-Hartley Act. 
D)  Labor force participation by women has decreased. 
A)  Much of the unskilled, nonunionized work in the United States is done by immigrant workers who are undocumented. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  The repeal of the Taft-Hartley Act. 
D)  Labor force participation by women has decreased.

Question 9

At the profit-maximizing level of employment, the monopsonist

Accepted Answer

A)  pays a wage equal to MRP. 
B)  pays a wage greater than MRP. 
C)  pays a wage less than MRP. 
D)  pays a wage equal to MFC. 
A)  pays a wage equal to MRP. 
B)  pays a wage greater than MRP. 
C)  pays a wage less than MRP. 
D)  pays a wage equal to MFC.

Question 10

In recent decades, the union-nonunion hourly wage differential has

Accepted Answer

A)  increased substantially. 
B)  increased slightly. 
C)  stayed the same. 
D)  fallen significantly. 
A)  increased substantially. 
B)  increased slightly. 
C)  stayed the same. 
D)  fallen significantly.

Question 11

In 2005, which union organization was formed out of the AFL-CIO membership?

Accepted Answer

A)  National Brotherhood of Teamsters 
B)  Service Employees International Union 
C)  American Federation of Workers 
D)  Change to Win 
A)  National Brotherhood of Teamsters 
B)  Service Employees International Union 
C)  American Federation of Workers 
D)  Change to Win

Question 12

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

Accepted Answer

A)  $27.00. 
B)  $48.00. 
C)  $168.00. 
D)  $216.00. 
A)  $27.00. 
B)  $48.00. 
C)  $168.00. 
D)  $216.00.

Question 13

The marginal factor cost of a monopsonist is

Accepted Answer

A)  upward sloping and the same as the supply curve. 
B)  downward sloping when the supply curve of labor is upward sloping. 
C)  upward sloping and rises faster than the supply curve. 
D)  horizontal. 
A)  upward sloping and the same as the supply curve. 
B)  downward sloping when the supply curve of labor is upward sloping. 
C)  upward sloping and rises faster than the supply curve. 
D)  horizontal.

Question 14

A right-to-work law makes it illegal for

Accepted Answer

A)  employers to refuse to hire union workers. 
B)  union membership to be a requirement for continued employment in any establishment. 
C)  union membership to be denied on the basis of race, gender, or national origin. 
D)  a union to exist in a state. 
A)  employers to refuse to hire union workers. 
B)  union membership to be a requirement for continued employment in any establishment. 
C)  union membership to be denied on the basis of race, gender, or national origin. 
D)  a union to exist in a state.

Question 15

If a minimum wage is established, a monopsonist faces

Accepted Answer

A)  an upward sloping supply of labor at all quantities of labor. 
B)  a downward sloping supply of labor at all quantities of labor. 
C)  a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage. 
D)  a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage. 
A)  an upward sloping supply of labor at all quantities of labor. 
B)  a downward sloping supply of labor at all quantities of labor. 
C)  a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage. 
D)  a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage.

Question 16

If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment

Accepted Answer

A)  will increase. 
B)  will remain constant. 
C)  will decrease. 
D)  may increase or decrease. 
A)  will increase. 
B)  will remain constant. 
C)  will decrease. 
D)  may increase or decrease.

Question 17

Strikebreakers

Accepted Answer

A)  can reduce the bargaining power of a union. 
B)  can strengthen the bargaining power of a union. 
C)  make a union negotiation invalid. 
D)  make a strike permanent. 
A)  can reduce the bargaining power of a union. 
B)  can strengthen the bargaining power of a union. 
C)  make a union negotiation invalid. 
D)  make a strike permanent.

Question 18

The CIO was founded by

Accepted Answer

A)  Samuel Gompers. 
B)  Jimmy Hoffa. 
C)  John L. Lewis. 
D)  George Meany. 
A)  Samuel Gompers. 
B)  Jimmy Hoffa. 
C)  John L. Lewis. 
D)  George Meany.

Question 19

The MFC can be calculated by the

Accepted Answer

A)  change in total wages/change in labor. 
B)  total wages/total labor. 
C)  change in labor/change in total wages. 
D)  total wages/change in labor. 
A)  change in total wages/change in labor. 
B)  total wages/total labor. 
C)  change in labor/change in total wages. 
D)  total wages/change in labor.

Question 20

Deregulation has contributed to

Accepted Answer

A)  an increase in union membership. 
B)  declines in union membership. 
C)  higher wages in unions. 
D)  an increase in union power. 
A)  an increase in union membership. 
B)  declines in union membership. 
C)  higher wages in unions. 
D)  an increase in union power.

Exam 29: Unions and Labor Market Monopoly Power

Suppose that under its collective bargaining agreement, the XYZ Co. can only hire union members in good standing at the time of hiring. XYZ Co. is

Which piece of legislation allowed states to pass right-to-work laws?

If we were to compare the hourly earnings of union and nonunion workers in recent years, we would find that

A union could raise wages without causing unemployment of union members if it can increase demand for union labor. How might this goal be achieved?

Which of the following correctly describes the trend in U.S. union membership?

An example of featherbedding is

Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that

Which of the following is one of the reasons for declining union membership in the United States?

At the profit-maximizing level of employment, the monopsonist

In recent decades, the union-nonunion hourly wage differential has

In 2005, which union organization was formed out of the AFL-CIO membership?

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

The marginal factor cost of a monopsonist is

A right-to-work law makes it illegal for

If a minimum wage is established, a monopsonist faces

If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment

Strikebreakers

The CIO was founded by

The MFC can be calculated by the

Deregulation has contributed to

The Nature of Economics

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