Question 1

The union wage advantage:

Accepted Answer

A) peaked in the mid-1970s 
B) has fallen consistently since 1965 
C) peaked in the mid-1990s 
D) has risen consistently since 1965 
A) peaked in the mid-1970s 
B) has fallen consistently since 1965 
C) peaked in the mid-1990s 
D) has risen consistently since 1965

Question 2

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 threat 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,decreasing the measured 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,decreasing the measured union wage advantage

Question 3

There is a general consensus among economists that:

Accepted Answer

A) unions reduce unemployment 
B) unions increase unemployment 
C) unions have increased labor's share of national income 
D) union wage determination is not a serious cause of inflation in the United States 
A) unions reduce unemployment 
B) unions increase unemployment 
C) unions have increased labor's share of national income 
D) union wage determination is not a serious cause of inflation in the United States

Question 4

The adverse effects of a strike on other associated industries and consumers are likely to be:

Accepted Answer

A) greater when it involves products rather than services 
B) greater when it involves small firms rather than large firms 
C) on the order of 5% of GDP each year 
D) substantially less than the adverse effects of lockouts by management 
A) greater when it involves products rather than services 
B) greater when it involves small firms rather than large firms 
C) on the order of 5% of GDP each year 
D) substantially less than the adverse effects of lockouts by management

Question 5

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

Accepted Answer

A) results in a less-experienced workforce 
B) increases the incentive for firms to provide specific training to their workers 
C) allows firms to employ a greater number of younger,more energetic workers 
D) increases the incentive for firms to substitute labor for capital in the production process 
A) results in a less-experienced workforce 
B) increases the incentive for firms to provide specific training to their workers 
C) allows firms to employ a greater number of younger,more energetic workers 
D) increases the incentive for firms to substitute labor for capital in the production process

Question 6

Evidence indicates that,on balance,union wage policies tend to:

Accepted Answer

A) lead to greater overall inequality in the distribution of earnings 
B) assign wages to individual workers,whereas nonunion firms tend to assign wages to jobs 
C) decrease the wage gap between unskilled and skilled workers by seeking equal absolute wage increases for all workers rather than equal relative wage increases 
D) raise wage rates at only the largest firms in an industry,thereby increasing wage dispersion within the industry 
A) lead to greater overall inequality in the distribution of earnings 
B) assign wages to individual workers,whereas nonunion firms tend to assign wages to jobs 
C) decrease the wage gap between unskilled and skilled workers by seeking equal absolute wage increases for all workers rather than equal relative wage increases 
D) raise wage rates at only the largest firms in an industry,thereby increasing wage dispersion within the industry

Question 7

A single union firm in a competitive industry otherwise comprised of nonunion firms:

Accepted Answer

A) will make economic losses if it pays a wage rate above its competitors 
B) will pay a higher union wage advantage than unionized firms in less competitive industries 
C) will make economic profits if it pays a wage rate equal to its rival firms 
D) will produce more output than its rival firms 
A) will make economic losses if it pays a wage rate above its competitors 
B) will pay a higher union wage advantage than unionized firms in less competitive industries 
C) will make economic profits if it pays a wage rate equal to its rival firms 
D) will produce more output than its rival firms

Question 8

Which one of the following observations supports the argument that unions increase productivity?

Accepted Answer

A) Turnover in union firms is lower than in nonunion firms 
B) Unions alter the allocation of labor between union and nonunion firms 
C) Training at union firms is lower than at nonunion firms 
D) Unions provide an "exit" option whereas nonunion workers only have a "voice" option 
A) Turnover in union firms is lower than in nonunion firms 
B) Unions alter the allocation of labor between union and nonunion firms 
C) Training at union firms is lower than at nonunion firms 
D) Unions provide an "exit" option whereas nonunion workers only have a "voice" option

Question 9

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

-The allocative efficiency loss implied by the diagram is a static,short-run loss.Compared to the static loss,the dynamic,long-run loss is probably:

Accepted Answer

A) greater,because unions reduce firm profitability and thereby inhibit investment 
B) greater,because unemployment is greater in the long run 
C) greater,as firms have a greater opportunity to exercise their monopsony power 
D) smaller,because the decline in nonunion wages increases the extent of poverty 
A) greater,because unions reduce firm profitability and thereby inhibit investment 
B) greater,because unemployment is greater in the long run 
C) greater,as firms have a greater opportunity to exercise their monopsony power 
D) smaller,because the decline in nonunion wages increases the extent of poverty

Question 10

The measured union wage advantage will understate the pure advantage because of the:

Accepted Answer

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

The union wage advantage:

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 threat effect would be modeled by:

There is a general consensus among economists that:

The adverse effects of a strike on other associated industries and consumers are likely to be:

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

Evidence indicates that,on balance,union wage policies tend to:

A single union firm in a competitive industry otherwise comprised of nonunion firms:

Which one of the following observations supports the argument that unions increase productivity?

refer to the following graph, in which all product markets are assumed to be competitive.' -The allocative efficiency loss implied by the diagram is a static,short-run loss.Compared to the static loss,the dynamic,long-run loss is probably:

The measured union wage advantage will understate the pure advantage because of the:

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

The union wage advantage:

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 threat effect would be modeled by:

There is a general consensus among economists that:

The adverse effects of a strike on other associated industries and consumers are likely to be:

By reducing labor turnover,unions may increase productivity because a lower turnover rate:

Evidence indicates that,on balance,union wage policies tend to:

A single union firm in a competitive industry otherwise comprised of nonunion firms:

Which one of the following observations supports the argument that unions increase productivity?

refer to the following graph, in which all product markets are assumed to be competitive.' -The allocative efficiency loss implied by the diagram is a static,short-run loss.Compared to the static loss,the dynamic,long-run loss is probably:

The measured union wage advantage will understate the pure advantage because of the:

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