Question 1

Which of the following types of unions did the CIO promote?

Accepted Answer

A)  Craft unions 
B)  Public sector unions 
C)  Industrial unions 
D)  Military unions 
A)  Craft unions 
B)  Public sector unions 
C)  Industrial unions 
D)  Military unions

Question 2

Which statement concerning powers granted the President of the United States by the Taft-Hartley Act is true?

Accepted Answer

A)  The President can obtain an injunction that will stop a strike, if the strike involves government workers only. 
B)  The President can require management to negotiate with a union and if the firm's management refuses, the President can appoint an arbitrator to resolve the conflict. 
C)  The President can obtain an injunction that will stop a strike for an eighty-day "cooling off" period if the strike is expected to imperil national safety or health. 
D)  The President can obtain an injunction that will stop a strike indefinitely. 
A)  The President can obtain an injunction that will stop a strike, if the strike involves government workers only. 
B)  The President can require management to negotiate with a union and if the firm's management refuses, the President can appoint an arbitrator to resolve the conflict. 
C)  The President can obtain an injunction that will stop a strike for an eighty-day "cooling off" period if the strike is expected to imperil national safety or health. 
D)  The President can obtain an injunction that will stop a strike indefinitely.

Question 3

The founder of the American Federation of Labor was

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 4

Which of the following is FALSE regarding a monopsonist?

Accepted Answer

A)  The monopsonist is the only buyer in a market. 
B)  The monopsonist faces an upward sloping labor supply curve. 
C)  The monopsonist faces an upward sloping labor demand curve. 
D)  The monopsonist faces the entire market labor supply curve. 
A)  The monopsonist is the only buyer in a market. 
B)  The monopsonist faces an upward sloping labor supply curve. 
C)  The monopsonist faces an upward sloping labor demand curve. 
D)  The monopsonist faces the entire market labor supply curve.

Question 5

A union of all workers from a particular industry is a(n)

Accepted Answer

A)  craft union. 
B)  conglomerate union. 
C)  industrial union. 
D)  expansive union. 
A)  craft union. 
B)  conglomerate union. 
C)  industrial union. 
D)  expansive union.

Question 6

Supposed you are hired to be a checker at a local grocery store. After ninety days of probation you become a member of the union. As a result you feel more secure about your job and work harder to be part of the team. This is a benefit of union membership that

Accepted Answer

A)  increases demand for union-made goods. 
B)  decreases the demand for nonunion-made goods. 
C)  increases worker productivity of union members. 
D)  increases union dues. 
A)  increases demand for union-made goods. 
B)  decreases the demand for nonunion-made goods. 
C)  increases worker productivity of union members. 
D)  increases union dues.

Question 7

If the union wants to follow the strategy of maximizing member's income, wages should be set

Accepted Answer

A)  above the market clearing wage rate. 
B)  such that all that wanted to work could work. 
C)  at the market clearing wage rate. 
D)  at the point at which the price elasticity of demand equals 1. 
A)  above the market clearing wage rate. 
B)  such that all that wanted to work could work. 
C)  at the market clearing wage rate. 
D)  at the point at which the price elasticity of demand equals 1.

Question 8

Bilateral monopoly exists when

Accepted Answer

A)  there is either a monopoly or a monopsony in the market. 
B)  there are two competing labor unions in a labor market. 
C)  there is a monopoly and a monopsony in a market. 
D)  a firm is both a monopolist in its output market and a monopsonist in the input market. 
A)  there is either a monopoly or a monopsony in the market. 
B)  there are two competing labor unions in a labor market. 
C)  there is a monopoly and a monopsony in a market. 
D)  a firm is both a monopolist in its output market and a monopsonist in the input market.

Question 9

If a union limits its size to the number of employed members it had when the union was first formed, over time there will be

Accepted Answer

A)  an increase in the supply of union labor. 
B)  falling wages as demand for workers increases. 
C)  rising wages as demand for workers increases and the supply increases proportionally. 
D)  rising wages as demand for workers increases but some potential workers are denied a place in the union. 
A)  an increase in the supply of union labor. 
B)  falling wages as demand for workers increases. 
C)  rising wages as demand for workers increases and the supply increases proportionally. 
D)  rising wages as demand for workers increases but some potential workers are denied a place in the union.

Question 10

When there is only one buyer of labor in a community, we talk of a

Accepted Answer

A)  monopoly. 
B)  monopsony. 
C)  monopolistic market. 
D)  labor cooperative. 
A)  monopoly. 
B)  monopsony. 
C)  monopolistic market. 
D)  labor cooperative.

Question 11

A closed shop is a

Accepted Answer

A)  strike by a union in sympathy with another union's strike or cause. 
B)  dispute involving two or more unions over which should have control of a particular jurisdiction. 
C)  business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired. 
D)  legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins. 
A)  strike by a union in sympathy with another union's strike or cause. 
B)  dispute involving two or more unions over which should have control of a particular jurisdiction. 
C)  business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired. 
D)  legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.

Question 12

A company town in the lumber or mining industry is an example of a

Accepted Answer

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

Question 13

When there is only one buyer in the market,

Accepted Answer

A)  a closed shop exists. 
B)  a monopsony exists. 
C)  then the market will be perfectly competitive. 
D)  the supply curve for the good will be perfectly elastic. 
A)  a closed shop exists. 
B)  a monopsony exists. 
C)  then the market will be perfectly competitive. 
D)  the supply curve for the good will be perfectly elastic.

Question 14

Evidence in support of the hypothesis that unions increase the productivity of union workers is

Accepted Answer

A)  the fact that union wages are greater than nonunion wages. 
B)  there is an excess supply of labor at the union wage rate. 
C)  that unionized firms face lower turnover rates than nonunion firms do. 
D)  that most contracts are settled without a strike. 
A)  the fact that union wages are greater than nonunion wages. 
B)  there is an excess supply of labor at the union wage rate. 
C)  that unionized firms face lower turnover rates than nonunion firms do. 
D)  that most contracts are settled without a strike.

Question 15

-In the above figure, what is the wage rate the monopsonist will pay?

Accepted Answer

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

Question 16

Which of the following is legal under the Taft-Hartley Act?

Accepted Answer

A)  Closed shops 
B)  Collective bargaining 
C)  Secondary boycotts 
D)  Sympathy strikes 
A)  Closed shops 
B)  Collective bargaining 
C)  Secondary boycotts 
D)  Sympathy strikes

Question 17

How can restricting entry into a union help boost members' wages without the union specifically setting wages?

Accepted Answer

With union membership limited, the quant

Question 18

When you see a commercial on TV asking you to "look for the union label," the union is trying to

Accepted Answer

A)  increase worker productivity. 
B)  increase the demand for nonunion goods. 
C)  increase the demand for union goods. 
D)  decrease the demand for nonunion goods. 
A)  increase worker productivity. 
B)  increase the demand for nonunion goods. 
C)  increase the demand for union goods. 
D)  decrease the demand for nonunion goods.

Question 19

The first labor unions in the United States were

Accepted Answer

A)  public-sector unions. 
B)  industrial unions. 
C)  guilds. 
D)  craft unions. 
A)  public-sector unions. 
B)  industrial unions. 
C)  guilds. 
D)  craft unions.

Question 20

A state with "right-to-work" laws would most likely have

Accepted Answer

A)  higher employment levels than neighboring states without such laws. 
B)  more workers' benefits than neighboring states without such laws. 
C)  more union workers than neighboring states without such laws. 
D)  more worker safety requirements than neighboring states without such laws. 
A)  higher employment levels than neighboring states without such laws. 
B)  more workers' benefits than neighboring states without such laws. 
C)  more union workers than neighboring states without such laws. 
D)  more worker safety requirements than neighboring states without such laws.

Exam 29: Unions and Labor Market Monopoly Power

Which of the following types of unions did the CIO promote?

Which statement concerning powers granted the President of the United States by the Taft-Hartley Act is true?

The founder of the American Federation of Labor was

Which of the following is FALSE regarding a monopsonist?

A union of all workers from a particular industry is a(n)

Supposed you are hired to be a checker at a local grocery store. After ninety days of probation you become a member of the union. As a result you feel more secure about your job and work harder to be part of the team. This is a benefit of union membership that

If the union wants to follow the strategy of maximizing member's income, wages should be set

Bilateral monopoly exists when

If a union limits its size to the number of employed members it had when the union was first formed, over time there will be

When there is only one buyer of labor in a community, we talk of a

A closed shop is a

A company town in the lumber or mining industry is an example of a

When there is only one buyer in the market,

Evidence in support of the hypothesis that unions increase the productivity of union workers is

-In the above figure, what is the wage rate the monopsonist will pay?

Which of the following is legal under the Taft-Hartley Act?

How can restricting entry into a union help boost members' wages without the union specifically setting wages?

When you see a commercial on TV asking you to "look for the union label," the union is trying to

The first labor unions in the United States were

A state with "right-to-work" laws would most likely have

The Nature of Economics

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