Question 1

Regarding unions and productivity,empirical results show that:

Accepted Answer

A) the impact of unionization on productivity is not clear cut 
B) unionization reduces productivity generally 
C) unionization improves productivity generally 
D) unionization improves productivity most in industries where union and management are most adversarial 
A) the impact of unionization on productivity is not clear cut 
B) unionization reduces productivity generally 
C) unionization improves productivity generally 
D) unionization improves productivity most in industries where union and management are most adversarial A

Question 2

Unions may reduce economic efficiency by:

Accepted Answer

A) providing an "exit" mechanism 
B) insisting promotions be based on ability rather than seniority 
C) imposing restrictive work rules 
D) reducing worker turnover 
A) providing an "exit" mechanism 
B) insisting promotions be based on ability rather than seniority 
C) imposing restrictive work rules 
D) reducing worker turnover C

Question 3

Fallick and Hassett suggest that the tendency of union firms to merge with union firms can be explained by their finding that:

Accepted Answer

A) union certification elections increase firms' research and development spending 
B) union firms are subject to a lower rate of corporate taxation 
C) union firms pay a smaller proportion of compensation in the form of fringe benefits 
D) union certification elections reduce firms' rates of investment in physical capital 
A) union certification elections increase firms' research and development spending 
B) union firms are subject to a lower rate of corporate taxation 
C) union firms pay a smaller proportion of compensation in the form of fringe benefits 
D) union certification elections reduce firms' rates of investment in physical capital D

Question 4

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. 
-The measured union wage advantage in this market is:

Accepted Answer

A) 20% 
B) 25% 
C) $2 
D) More information is needed 
A) 20% 
B) 25% 
C) $2 
D) More information is needed

Question 5

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. 
-The spillover effect would be modeled by:

Accepted Answer

A) shifting the nonunion supply curve to the right,increasing the measured union wage advantage 
B) shifting the nonunion demand curve to the right,reducing the measured union wage advantage 
C) shifting the union demand curve to the right,increasing the measured union wage advantage 
D) raising the nonunion wage above its equilibrium level,reducing the true union wage advantage 
A) shifting the nonunion supply curve to the right,increasing the measured union wage advantage 
B) shifting the nonunion demand curve to the right,reducing the measured union wage advantage 
C) shifting the union demand curve to the right,increasing the measured union wage advantage 
D) raising the nonunion wage above its equilibrium level,reducing the true union wage advantage

Question 6

If Wu is the union wage and Wn is the nonunion wage,the pure union wage advantage is:

Accepted Answer

A) $$\frac { W _ { n } - W _ { u } } { W _ { u } } \times 100$$ 
B) $$\frac { W _ { n } } { W _ { u } } \times 100$$ 
C) $$\frac { W _ { u } - W _ { n } } { W _ { n } } \times 100$$ 
D) $$W _ { n } - W _ { u }$$ 
A) $$\frac { W _ { n } - W _ { u } } { W _ { u } } \times 100$$ 
B) $$\frac { W _ { n } } { W _ { u } } \times 100$$ 
C) $$\frac { W _ { u } - W _ { n } } { W _ { n } } \times 100$$ 
D) $$W _ { n } - W _ { u }$$

Question 7

If nonunion workers in a given occupation are paid $16 per hour while union workers receive $20 per hour,the pure union wage advantage is:

Accepted Answer

A) 20% 
B) 25% 
C) 80% 
D) more information is required 
A) 20% 
B) 25% 
C) 80% 
D) more information is required

Question 8

Hirsch and Macpherson estimate the overall union wage advantage to be approximately:

Accepted Answer

A) 4% 
B) 9% 
C) 15% 
D) 28% 
A) 4% 
B) 9% 
C) 15% 
D) 28%

Question 9

As a percentage of total work-time,the average amount of work-time lost because of strikes annually is typically:

Accepted Answer

A) less than 1% 
B) 4%-5% 
C) 9%-10% 
D) greater than 15% 
A) less than 1% 
B) 4%-5% 
C) 9%-10% 
D) greater than 15%

Question 10

Suppose the union wage rate rises.The "spillover effect" suggests that the nonunion wage rate should _____; the "threat effect" suggests that the nonunion wage rate should _____.

Accepted Answer

A) fall,fall 
B) rise,fall 
C) fall,rise 
D) rise,rise 
A) fall,fall 
B) rise,fall 
C) fall,rise 
D) rise,rise

Question 11

The allocative efficiency loss associated with unions arises because:

Accepted Answer

A) job losers in the union sector take away jobs from more productive workers in the nonunion sector 
B) the value of lost output in the union sector is greater than the value of any additional output in the nonunion sector 
C) the union wage rises above the value of marginal product while the nonunion wage falls below it 
D) job losers in the union sector are unqualified to work in the nonunion sector,so society loses their potential output 
A) job losers in the union sector take away jobs from more productive workers in the nonunion sector 
B) the value of lost output in the union sector is greater than the value of any additional output in the nonunion sector 
C) the union wage rises above the value of marginal product while the nonunion wage falls below it 
D) job losers in the union sector are unqualified to work in the nonunion sector,so society loses their potential output

Question 12

The union wage advantage tends to:

Accepted Answer

A) decrease during recessions 
B) be smaller among lower-educated workers 
C) be smaller among African Americans 
D) be larger among craft unions 
A) decrease during recessions 
B) be smaller among lower-educated workers 
C) be smaller among African Americans 
D) be larger among craft unions

Question 13

refer to the following graph, in which all product markets are assumed to be competitive.'

-Assume the two labor demand curves are identical,and that all union workers who lose their job as a result of the union wage increase from Wn to Wu find jobs in the nonunion sector.The area corresponding to the efficiency loss is:

Accepted Answer

A) c'abd' 
B) WnWua c' 
C) eabf 
D) gcdh 
A) c'abd' 
B) WnWua c' 
C) eabf 
D) gcdh

Question 14

In their study of the Bridgestone/Firestone tire recalls,Krueger and Mas find that:

Accepted Answer

A) decreases in product quality at the Illinois plant were caused by management replacing workers with low quality robots 
B) tire defects were highest in factories where unionization rates were lowest 
C) labor strife at the Illinois plant resulted in lower product quality 
D) there were no differences in product defects at the struck Illinois plant and others where there was no labor strife 
A) decreases in product quality at the Illinois plant were caused by management replacing workers with low quality robots 
B) tire defects were highest in factories where unionization rates were lowest 
C) labor strife at the Illinois plant resulted in lower product quality 
D) there were no differences in product defects at the struck Illinois plant and others where there was no labor strife

Question 15

If union workers in a given occupation are paid $20 per hour while nonunion workers receive $16 per hour,the measured union wage advantage is:

Accepted Answer

A) 20% 
B) 25% 
C) 80% 
D) more information is required 
A) 20% 
B) 25% 
C) 80% 
D) more information is required

Question 16

"The union wage advantage is understated because nonunion wages rise as consumer demand shifts away from relatively higher priced union produced goods." This describes the:

Accepted Answer

A) product-market effect 
B) spillover effect 
C) superior-worker effect 
D) threat effect 
A) product-market effect 
B) spillover effect 
C) superior-worker effect 
D) threat effect

Question 17

The nonunion wage rate may rise as the result of a union wage increase because of the:

Accepted Answer

A) spillover effect 
B) superior-worker effect 
C) threat effect 
D) compensating wage differential effect 
A) spillover effect 
B) superior-worker effect 
C) threat effect 
D) compensating wage differential effect

Question 18

Evidence suggests that unions reduce firm profitability and discourage investment,so that:

Accepted Answer

A) the dynamic efficiency loss from unionization is smaller than the static efficiency loss 
B) the dynamic efficiency loss from unionization is greater than the static efficiency loss 
C) turnover in union firms is greater because workers become bored with old technology 
D) turnover in nonunion firms is greater because workers cannot keep up with new technology 
A) the dynamic efficiency loss from unionization is smaller than the static efficiency loss 
B) the dynamic efficiency loss from unionization is greater than the static efficiency loss 
C) turnover in union firms is greater because workers become bored with old technology 
D) turnover in nonunion firms is greater because workers cannot keep up with new technology

Question 19

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. 
-The product market effect would be modeled by shifting the:

Accepted Answer

A) nonunion supply curve to the right,increasing the measured union wage advantage 
B) nonunion demand curve to the right,reducing the measured union wage advantage 
C) union demand curve to the right,increasing the measured union wage advantage 
D) union supply curve to the right,reducing the pure union wage advantage 
A) nonunion supply curve to the right,increasing the measured union wage advantage 
B) nonunion demand curve to the right,reducing the measured union wage advantage 
C) union demand curve to the right,increasing the measured union wage advantage 
D) union supply curve to the right,reducing the pure union wage advantage

Question 20

It is difficult to measure the pure union wage advantage because:

Accepted Answer

A) women constitute a greater proportion of the work force in strongly unionized industries than in weakly unionized industries 
B) unionized industries tend to have larger plants that may require greater worker supervision,thus promoting union employers to seek out "superior" workers 
C) unionized industries tend to employ production methods that are highly labor-intensive and therefore require lower-paid unskilled workers 
D) unions are more easily established in those industries that pay low wages,so that the percentage wage gains are much smaller 
A) women constitute a greater proportion of the work force in strongly unionized industries than in weakly unionized industries 
B) unionized industries tend to have larger plants that may require greater worker supervision,thus promoting union employers to seek out "superior" workers 
C) unionized industries tend to employ production methods that are highly labor-intensive and therefore require lower-paid unskilled workers 
D) unions are more easily established in those industries that pay low wages,so that the percentage wage gains are much smaller

Regarding unions and productivity,empirical results show that:

Unions may reduce economic efficiency by:

Fallick and Hassett suggest that the tendency of union firms to merge with union firms can be explained by their finding that:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The measured union wage advantage in this market is:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The spillover effect would be modeled by:

If W_u is the union wage and W_n is the nonunion wage,the pure union wage advantage is:

If nonunion workers in a given occupation are paid $16 per hour while union workers receive $20 per hour,the pure union wage advantage is:

Hirsch and Macpherson estimate the overall union wage advantage to be approximately:

As a percentage of total work-time,the average amount of work-time lost because of strikes annually is typically:

Suppose the union wage rate rises.The "spillover effect" suggests that the nonunion wage rate should _; the "threat effect" suggests that the nonunion wage rate should _.

The allocative efficiency loss associated with unions arises because:

The union wage advantage tends to:

In their study of the Bridgestone/Firestone tire recalls,Krueger and Mas find that:

If union workers in a given occupation are paid $20 per hour while nonunion workers receive $16 per hour,the measured union wage advantage is:

"The union wage advantage is understated because nonunion wages rise as consumer demand shifts away from relatively higher priced union produced goods." This describes the:

The nonunion wage rate may rise as the result of a union wage increase because of the:

Evidence suggests that unions reduce firm profitability and discourage investment,so that:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The product market effect would be modeled by shifting the:

It is difficult to measure the pure union wage advantage because:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

Exam 11: The Economic Impact of Unions

Regarding unions and productivity,empirical results show that:

Unions may reduce economic efficiency by:

Fallick and Hassett suggest that the tendency of union firms to merge with union firms can be explained by their finding that:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The measured union wage advantage in this market is:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The spillover effect would be modeled by:

If Wu is the union wage and Wn is the nonunion wage,the pure union wage advantage is:

If nonunion workers in a given occupation are paid $16 per hour while union workers receive $20 per hour,the pure union wage advantage is:

Hirsch and Macpherson estimate the overall union wage advantage to be approximately:

As a percentage of total work-time,the average amount of work-time lost because of strikes annually is typically:

Suppose the union wage rate rises.The "spillover effect" suggests that the nonunion wage rate should _____; the "threat effect" suggests that the nonunion wage rate should _____.

The allocative efficiency loss associated with unions arises because:

The union wage advantage tends to:

In their study of the Bridgestone/Firestone tire recalls,Krueger and Mas find that:

If union workers in a given occupation are paid $20 per hour while nonunion workers receive $16 per hour,the measured union wage advantage is:

"The union wage advantage is understated because nonunion wages rise as consumer demand shifts away from relatively higher priced union produced goods." This describes the:

The nonunion wage rate may rise as the result of a union wage increase because of the:

Evidence suggests that unions reduce firm profitability and discourage investment,so that:

refer to the following diagram. Wages in both the union and nonunion sectors are initially $10. The union then negotiates a wage rate of $12. The post-negotiation nonunion wage is not yet known. -The product market effect would be modeled by shifting the:

It is difficult to measure the pure union wage advantage because:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

If W_u is the union wage and W_n is the nonunion wage,the pure union wage advantage is:

Suppose the union wage rate rises.The "spillover effect" suggests that the nonunion wage rate should _; the "threat effect" suggests that the nonunion wage rate should _.