Question 1

What is the union wage gap if the average union salary is $50,000 while the average non-union salary is $40,000?

Accepted Answer

A) 10% 
B) 20% 
C) 25% 
D) 40% 
E) 50% 
A) 10% 
B) 20% 
C) 25% 
D) 40% 
E) 50%

Question 2

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

Accepted Answer

A) the union's sole objective is to increase the wage. 
B) union leadership disregards the preferences of the rank and file. 
C) unions never lead to an efficiency loss. 
D) unions are willing to tradeoff some amount of higher earnings for greater employment. 
E) unions and management secretly negotiate on the behalf of stockholders. 
A) the union's sole objective is to increase the wage. 
B) union leadership disregards the preferences of the rank and file. 
C) unions never lead to an efficiency loss. 
D) unions are willing to tradeoff some amount of higher earnings for greater employment. 
E) unions and management secretly negotiate on the behalf of stockholders.

Question 3

Which of the following best defines final-offer arbitration?

Accepted Answer

A) After a short strike, the union offers a final contract to the firm which the firm must accept. 
B) An arbitrator produces a contract that the union and firm are both encouraged to accept. 
C) Final-offer arbitration occurs when the firm threatens to shut-down unless the union accepts the firm's final offer. 
D) An arbitrator chooses the firm's last offer or the union's last offer, and both sides must abide by whichever contract is chosen. 
E) An arbitrator facilitates a discussion between the union and firm after the cool-down period has expired. 
A) After a short strike, the union offers a final contract to the firm which the firm must accept. 
B) An arbitrator produces a contract that the union and firm are both encouraged to accept. 
C) Final-offer arbitration occurs when the firm threatens to shut-down unless the union accepts the firm's final offer. 
D) An arbitrator chooses the firm's last offer or the union's last offer, and both sides must abide by whichever contract is chosen. 
E) An arbitrator facilitates a discussion between the union and firm after the cool-down period has expired.

Question 4

The labor demand curve is

Accepted Answer

A) the same as the marginal cost curve. 
B) composed of the peaks of isoprofit curves. 
C) upward sloping. 
D) derived solely from the price of the firm's good. 
E) determined completely by the firm's technology. 
A) the same as the marginal cost curve. 
B) composed of the peaks of isoprofit curves. 
C) upward sloping. 
D) derived solely from the price of the firm's good. 
E) determined completely by the firm's technology.

Question 5

Which of the following is the best theoretical explanation for why strikes occur?

Accepted Answer

A) The firm has a downward sloped resistance curve. 
B) The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve. 
C) The union's leadership wants to please management. 
D) The union doesn't know how valuable labor is to the firm. 
E) The firm wants to minimize labor costs. 
A) The firm has a downward sloped resistance curve. 
B) The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve. 
C) The union's leadership wants to please management. 
D) The union doesn't know how valuable labor is to the firm. 
E) The firm wants to minimize labor costs.

Question 6

Union jobs are highly sought out:

Accepted Answer

A) When economic conditions worsen. 
B) When workers face job insecurity during periods of high unemployment. 
C) When there is a decline in real wages. 
D) When working conditions are poor. 
E) All of the above are true. 
A) When economic conditions worsen. 
B) When workers face job insecurity during periods of high unemployment. 
C) When there is a decline in real wages. 
D) When working conditions are poor. 
E) All of the above are true.

Question 7

Which statement best describes international comparisons of unionization rates?

Accepted Answer

A) Private sector unionization is about the same (around 20%) in all developed countries. 
B) Private sector unionization is greater in less-developed countries than in developed countries. 
C) Private sector unionization rates have steadily fallen in all developed countries over the last 40 years. 
D) Private sector unionization rates vary greatly by country. 
E) Private sector unionization rates exceed public sector unionization rates in all developed countries. 
A) Private sector unionization is about the same (around 20%) in all developed countries. 
B) Private sector unionization is greater in less-developed countries than in developed countries. 
C) Private sector unionization rates have steadily fallen in all developed countries over the last 40 years. 
D) Private sector unionization rates vary greatly by country. 
E) Private sector unionization rates exceed public sector unionization rates in all developed countries.

Question 8

Which of the following is least associated with union jobs and contracts?

Accepted Answer

A) High-skilled workers. 
B) A large population of black workers. 
C) A large population of immigrant workers. 
D) Both private and public sectors jobs. 
E) Jobs in industries that are controlled by just a few firms. 
A) High-skilled workers. 
B) A large population of black workers. 
C) A large population of immigrant workers. 
D) Both private and public sectors jobs. 
E) Jobs in industries that are controlled by just a few firms.

Question 9

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Accepted Answer

A) curtailed union power by permitting states to pass right-to-work laws. 
B) granted firms the right to break unions. 
C) outlawed yellow-dog contracts. 
D) created the National Labor Relations Board. 
E) granted union rank and file the right to decertify its leadership via election. 
A) curtailed union power by permitting states to pass right-to-work laws. 
B) granted firms the right to break unions. 
C) outlawed yellow-dog contracts. 
D) created the National Labor Relations Board. 
E) granted union rank and file the right to decertify its leadership via election.

Question 10

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Accepted Answer

A) restrict interstate commerce, which was prohibited by the Sherman Act. 
B) use coercive tactics to force workers to join the union. 
C) illegally spend dues on political activities. 
D) reduce the United State's competitive advantage it had over Germany. 
E) fail to protect the rights of children who could not legally join a union. 
A) restrict interstate commerce, which was prohibited by the Sherman Act. 
B) use coercive tactics to force workers to join the union. 
C) illegally spend dues on political activities. 
D) reduce the United State's competitive advantage it had over Germany. 
E) fail to protect the rights of children who could not legally join a union.

What is the union wage gap if the average union salary is $50,000 while the average non-union salary is $40,000?

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

Which of the following best defines final-offer arbitration?

The labor demand curve is

Which of the following is the best theoretical explanation for why strikes occur?

Union jobs are highly sought out:

Which statement best describes international comparisons of unionization rates?

Which of the following is least associated with union jobs and contracts?

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Incentive Pay

Unemployment

Filters

Exam 10: Labor Unions

What is the union wage gap if the average union salary is $50,000 while the average non-union salary is $40,000?

In the standard model of a monopoly union bargaining with the firm, it is typically assumed that

Which of the following best defines final-offer arbitration?

The labor demand curve is

Which of the following is the best theoretical explanation for why strikes occur?

Union jobs are highly sought out:

Which statement best describes international comparisons of unionization rates?

Which of the following is least associated with union jobs and contracts?

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

Prior to the New Deal legislation of the 1930s that expanded the rights of unions, firms were successful in suppressing union pressures by arguing in court that unions would

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Incentive Pay

Unemployment

Filters