Question 1

A practice which might force employers to use more labor than they would otherwise is referred to as

Accepted Answer

A)  wall propping. 
B)  featherbedding. 
C)  mothballing. 
D)  yellow-dogging. 
A)  wall propping. 
B)  featherbedding. 
C)  mothballing. 
D)  yellow-dogging.

Question 2

-Refer to the above figure. If the union wants to maximize the total income of its members who work, it will set wages at

Accepted Answer

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

Question 3

If a union wishes to maximize the number of union members employed, it will

Accepted Answer

A)  accept the competitive wage. 
B)  set a wage below the competitive wage. 
C)  set a wage where the elasticity of demand for labor equals one. 
D)  set a wage above the competitive wage. 
A)  accept the competitive wage. 
B)  set a wage below the competitive wage. 
C)  set a wage where the elasticity of demand for labor equals one. 
D)  set a wage above the competitive wage.

Question 4

A union is striking a steel company, and then, to put more pressure on the steel company, also promotes a boycott against an auto company that buys steel from the steel company. This latter action is

Accepted Answer

A)  a sympathy strike, and is illegal under the Taft-Hartley Act. 
B)  a secondary boycott, and is legal under the Landrum-Griffin Act. 
C)  a secondary boycott, and is illegal under the Taft-Hartley Act. 
D)  a sympathy strike, and is legal under the Wagner Act. 
A)  a sympathy strike, and is illegal under the Taft-Hartley Act. 
B)  a secondary boycott, and is legal under the Landrum-Griffin Act. 
C)  a secondary boycott, and is illegal under the Taft-Hartley Act. 
D)  a sympathy strike, and is legal under the Wagner Act.

Question 5

The American Federation of State, County, Government and Municipal Employees is an example of a(n)

Accepted Answer

A)  guild. 
B)  craft union. 
C)  industrial union. 
D)  public-sector union. 
A)  guild. 
B)  craft union. 
C)  industrial union. 
D)  public-sector union.

Question 6

Unions can increase labor productivity by

Accepted Answer

A)  maximizing the number of workers in the union. 
B)  reducing the supply of workers over time. 
C)  reducing conflicts between workers and management. 
D)  reducing the quantity of poorly made imports into the country. 
A)  maximizing the number of workers in the union. 
B)  reducing the supply of workers over time. 
C)  reducing conflicts between workers and management. 
D)  reducing the quantity of poorly made imports into the country.

Question 7

All of the following are benefits of labor unions EXCEPT

Accepted Answer

A)  unions reduce wage inequity. 
B)  unions increase the stability of the workforce. 
C)  unions give workers a political voice. 
D)  unions maximize employment for all workers. 
A)  unions reduce wage inequity. 
B)  unions increase the stability of the workforce. 
C)  unions give workers a political voice. 
D)  unions maximize employment for all workers.

Question 8

-In the above table, what is the marginal factor cost of the 6th worker?

Accepted Answer

A)  $30 
B)  $18 
C)  $120 
D)  $20 
A)  $30 
B)  $18 
C)  $120 
D)  $20

Question 9

-In the above figure, if the union has Q2 members and wants to ensure that all members have jobs, it will set wage equal to

Accepted Answer

A)  W1. 
B)  W2. 
C)  W3. 
D)  none of the above. 
A)  W1. 
B)  W2. 
C)  W3. 
D)  none of the above.

Question 10

A boycott of products sold by companies that are dealing with a company whose workers are on strike is a

Accepted Answer

A)  jurisdictional dispute. 
B)  sympathy strike. 
C)  right-to-boycott law. 
D)  secondary boycott. 
A)  jurisdictional dispute. 
B)  sympathy strike. 
C)  right-to-boycott law. 
D)  secondary boycott.

Question 11

If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be

Accepted Answer

A)  zero. 
B)  numerically equal to 1. 
C)  finite, but greater than -1. 
D)  positive, but less than 1. 
A)  zero. 
B)  numerically equal to 1. 
C)  finite, but greater than -1. 
D)  positive, but less than 1.

Question 12

The Knights of Labor was

Accepted Answer

A)  a craft union that tried to restrict immigration into the United States. 
B)  an organization of skilled labor that tried to increase technical training after the German model. 
C)  an organization of both unskilled and skilled workers that pushed for an eight-hour workday and equal pay for men and women. 
D)  an industrial union composed of military personnel that tried to improve military life. 
A)  a craft union that tried to restrict immigration into the United States. 
B)  an organization of skilled labor that tried to increase technical training after the German model. 
C)  an organization of both unskilled and skilled workers that pushed for an eight-hour workday and equal pay for men and women. 
D)  an industrial union composed of military personnel that tried to improve military life.

Question 13

-In the above table, what is the marginal factor cost of the 5th worker?

Accepted Answer

A)  $22 
B)  $18 
C)  $90 
D)  $26 
A)  $22 
B)  $18 
C)  $90 
D)  $26

Question 14

A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

Accepted Answer

A)  MFC =   . 
B)  a perfectly elastic labor supply = MRP. 
C)  a perfectly inelastic labor supply = perfectly inelastic labor demand. 
D)  where supply of labor = demand for labor. 
A)  MFC =   . 
B)  a perfectly elastic labor supply = MRP. 
C)  a perfectly inelastic labor supply = perfectly inelastic labor demand. 
D)  where supply of labor = demand for labor.

Question 15

Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as

Accepted Answer

A)  illegal in most states. 
B)  monopolistic exploitation. 
C)  monopsonistic exploitation. 
D)  total exploitation. 
A)  illegal in most states. 
B)  monopolistic exploitation. 
C)  monopsonistic exploitation. 
D)  total exploitation.

Question 16

Which of the following is the BEST example of a monopsonist?

Accepted Answer

A)  a household hiring a gardener 
B)  a turnip farmer hiring seasonal help 
C)  Hershey's Chocolate Factory in Hershey, PA 
D)  Vinaka Coffee Shop in Carlsbad, CA 
A)  a household hiring a gardener 
B)  a turnip farmer hiring seasonal help 
C)  Hershey's Chocolate Factory in Hershey, PA 
D)  Vinaka Coffee Shop in Carlsbad, CA

Question 17

The United Steel Workers Union is an example of

Accepted Answer

A)  a craft union. 
B)  an auto union. 
C)  an industrial union. 
D)  a blue collar union. 
A)  a craft union. 
B)  an auto union. 
C)  an industrial union. 
D)  a blue collar union.

Question 18

Which of the following is NOT considered to be a benefit of unionism?

Accepted Answer

A)  increased featherbedding 
B)  greater workplace safety 
C)  higher workforce stability 
D)  provision of arbitration and grievance procedures 
A)  increased featherbedding 
B)  greater workplace safety 
C)  higher workforce stability 
D)  provision of arbitration and grievance procedures

Question 19

When unions raise wages beyond what productivity increases would permit,

Accepted Answer

A)  more union workers are employed. 
B)  there are higher wages for all union members. 
C)  there is a redistribution of income from low- to high-seniority workers. 
D)  nonunion workers wages in the economy also increase. 
A)  more union workers are employed. 
B)  there are higher wages for all union members. 
C)  there is a redistribution of income from low- to high-seniority workers. 
D)  nonunion workers wages in the economy also increase.

Question 20

-Use the above table. The data shows that the firm

Accepted Answer

A)  is hiring in a perfectly competitive labor market. 
B)  is selling its output in a perfectly competitive market. 
C)  is a monopsonist. 
D)  is selling its output in an imperfectly competitive market. 
A)  is hiring in a perfectly competitive labor market. 
B)  is selling its output in a perfectly competitive market. 
C)  is a monopsonist. 
D)  is selling its output in an imperfectly competitive market.

Exam 29: Unions and Labor Market Monopoly Power

A practice which might force employers to use more labor than they would otherwise is referred to as

-Refer to the above figure. If the union wants to maximize the total income of its members who work, it will set wages at

If a union wishes to maximize the number of union members employed, it will

A union is striking a steel company, and then, to put more pressure on the steel company, also promotes a boycott against an auto company that buys steel from the steel company. This latter action is

The American Federation of State, County, Government and Municipal Employees is an example of a(n)

Unions can increase labor productivity by

All of the following are benefits of labor unions EXCEPT

-In the above table, what is the marginal factor cost of the 6th worker?

-In the above figure, if the union has Q2 members and wants to ensure that all members have jobs, it will set wage equal to

A boycott of products sold by companies that are dealing with a company whose workers are on strike is a

If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be

The Knights of Labor was

-In the above table, what is the marginal factor cost of the 5th worker?

A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as

Which of the following is the BEST example of a monopsonist?

The United Steel Workers Union is an example of

Which of the following is NOT considered to be a benefit of unionism?

When unions raise wages beyond what productivity increases would permit,

-Use the above table. The data shows that the firm

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

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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

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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

Filters

-In the above figure, if the union has Q₂ members and wants to ensure that all members have jobs, it will set wage equal to