Question 1

Which of the following is not correct?

Accepted Answer

A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining,while workers not in unions bear some of the cost. 
A) An organized withdrawal of labor from a firm by a union is called a strike. 
B) The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. 
C) Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. 
D) Workers in unions reap the benefit of collective bargaining,while workers not in unions bear some of the cost.

Question 2

Which of the following is not correct?

Accepted Answer

A) When a union is present in a labor market,wages are determined by the equilibrium of supply and demand. 
B) Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) The process by which unions and firms agree on the terms of employment is called collective bargaining. 
D) Most workers in the U.S.economy are not members of a union. 
A) When a union is present in a labor market,wages are determined by the equilibrium of supply and demand. 
B) Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) The process by which unions and firms agree on the terms of employment is called collective bargaining. 
D) Most workers in the U.S.economy are not members of a union.

Question 3

Collective bargaining refers to

Accepted Answer

A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment. 
A) the process by which the government sets exemptions from the minimum wage law. 
B) setting the same wage for all employees to prevent conflict among workers. 
C) firms colluding to set the wages of employees below equilibrium. 
D) the process by which unions and firms agree on the terms of employment.

Question 4

When a union bargains successfully with employers,in that industry,

Accepted Answer

A) both wages and unemployment increase. 
B) wages increase and unemployment decreases. 
C) wages decrease and unemployment increases. 
D) both wages and unemployment decrease. 
A) both wages and unemployment increase. 
B) wages increase and unemployment decreases. 
C) wages decrease and unemployment increases. 
D) both wages and unemployment decrease.

Question 5

There is a clear consensus among economists that unions are

Accepted Answer

A) good for the economy because they result in higher wages for most workers. 
B) good for the economy because they are a necessary antidote to the market power of employers. 
C) bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D) None of the above is correct;there is no clear consensus among economists about whether unions are good or bad for the economy. 
A) good for the economy because they result in higher wages for most workers. 
B) good for the economy because they are a necessary antidote to the market power of employers. 
C) bad for the economy because they are cartels and therefore detrimental to an efficient allocation of resources. 
D) None of the above is correct;there is no clear consensus among economists about whether unions are good or bad for the economy.

Question 6

Sam has no job but keeps applying to get a job with a business that is unionized.He is qualified and he finds the pay attractive,but the firm is not hiring.Sam is

Accepted Answer

A) structurally unemployed.Structural unemployment exists even in the long run. 
B) structurally unemployed.Structural unemployment does not exist in the long run. 
C) frictionally unemployed.Frictional unemployment exists even in the long run. 
D) frictionally unemployed.Frictional unemployment does not exist in the long run. 
A) structurally unemployed.Structural unemployment exists even in the long run. 
B) structurally unemployed.Structural unemployment does not exist in the long run. 
C) frictionally unemployed.Frictional unemployment exists even in the long run. 
D) frictionally unemployed.Frictional unemployment does not exist in the long run.

Question 7

Suppose that florists and landscape workers are not unionized.If florists unionize,then the wages of

Accepted Answer

A) florists will rise,and the wages of landscape workers will fall. 
B) florists will fall,and the wages of landscape workers will rise. 
C) both florists and landscape workers will rise. 
D) both florists and landscape workers will fall. 
A) florists will rise,and the wages of landscape workers will fall. 
B) florists will fall,and the wages of landscape workers will rise. 
C) both florists and landscape workers will rise. 
D) both florists and landscape workers will fall.

Question 8

In the absence of right-to-work laws,workers

Accepted Answer

A) that went on strike could be permanently replaced. 
B) might be required to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike. 
A) that went on strike could be permanently replaced. 
B) might be required to join the union if they worked for a unionized firm. 
C) would not be able to unionize. 
D) would not be able to strike.

Question 9

Suppose that garbage collectors and landscaping workers have no unions.Now suppose that garbage collectors form unions.What does this do to the labor supply and wages of landscaping workers?

Accepted Answer

A) Both labor supply and wages increase. 
B) Labor supply increases,and wages decrease. 
C) Labor supply decreases,and wages increase. 
D) Both labor supply and wages increase 
A) Both labor supply and wages increase. 
B) Labor supply increases,and wages decrease. 
C) Labor supply decreases,and wages increase. 
D) Both labor supply and wages increase

Question 10

Which of the following do unions not cause?

Accepted Answer

A) frictional unemployment 
B) the wage to rise above the equilibrium level 
C) conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D) reduced wages in industries without unions 
A) frictional unemployment 
B) the wage to rise above the equilibrium level 
C) conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs 
D) reduced wages in industries without unions

Question 11

Since the 1940's U.S.union membership has

Accepted Answer

A) fallen.This decline should have reduced structural unemployment. 
B) fallen.This decline should not have reduced structural unemployment. 
C) risen.This increase should have raised structural unemployment. 
D) risen.This increase should not have raised structural unemployment. 
A) fallen.This decline should have reduced structural unemployment. 
B) fallen.This decline should not have reduced structural unemployment. 
C) risen.This increase should have raised structural unemployment. 
D) risen.This increase should not have raised structural unemployment.

Question 12

If a union raises the wage in its industry above equilibrium then employment in that industry

Accepted Answer

A) and non-unionized industries falls. 
B) falls and employment in non-unionized industries rises. 
C) rises and falls in non-unionized industries. 
D) and non-unionized industries rises. 
A) and non-unionized industries falls. 
B) falls and employment in non-unionized industries rises. 
C) rises and falls in non-unionized industries. 
D) and non-unionized industries rises.

Question 13

Which of the following is correct?

Accepted Answer

A) In unionized industries,wages are below the level that would prevail in competitive markets. 
B) The introduction of a union in an industry increases the quantity of labor demanded in that industry,causes some workers in that industry to be unemployed,and increases wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct. 
A) In unionized industries,wages are below the level that would prevail in competitive markets. 
B) The introduction of a union in an industry increases the quantity of labor demanded in that industry,causes some workers in that industry to be unemployed,and increases wages in the rest of the economy. 
C) Critics argue that the allocation of labor resulting from unions is both inefficient and inequitable. 
D) All of the above are correct.

Question 14

Which of the following is not correct?

Accepted Answer

A) When a union is present in a labor market,wages may not be determined by the equilibrium of supply and demand. 
B) Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) When unions raise wages above equilibrium,the quantity of labor supplied decreases,and the quantity of labor demanded increases. 
D) Most workers in the U.S.economy are not members of a union. 
A) When a union is present in a labor market,wages may not be determined by the equilibrium of supply and demand. 
B) Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power. 
C) When unions raise wages above equilibrium,the quantity of labor supplied decreases,and the quantity of labor demanded increases. 
D) Most workers in the U.S.economy are not members of a union.

Question 15

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

Accepted Answer

A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs,but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs. 
A) rise in both markets. 
B) fall in both markets 
C) rise for the union jobs,but remain unchanged for the nonunion jobs. 
D) rise for the union jobs and fall for the nonunion jobs.

Question 16

Economists have found that union workers earn what percent more than similar nonunion workers?

Accepted Answer

A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30 
A) 0 to 5 
B) 5 to 10 
C) 10 to 20 
D) 20 to 30

Question 17

When a union raises the wage above the equilibrium level,it

Accepted Answer

A) reduces both the quantity of labor supplied and the quantity of labor demanded. 
B) reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C) raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D) raises both the quantity of labor supplied and the quantity of labor demanded. 
A) reduces both the quantity of labor supplied and the quantity of labor demanded. 
B) reduces the quantity of labor supplied and raises the quantity of labor demanded. 
C) raises the quantity of labor supplied and reduces the quantity of labor demanded. 
D) raises both the quantity of labor supplied and the quantity of labor demanded.

Question 18

Labor unions

Accepted Answer

A) raise wages in unionized industries. 
B) create labor shortages in non-unionized industries. 
C) play a larger role in the current U.S.economy than in European countries such as Norway and Sweden. 
D) prefer to operate in states with right-to-work laws. 
A) raise wages in unionized industries. 
B) create labor shortages in non-unionized industries. 
C) play a larger role in the current U.S.economy than in European countries such as Norway and Sweden. 
D) prefer to operate in states with right-to-work laws.

Question 19

Which of the following is not correct?

Accepted Answer

A) A union is a worker association that bargains with employers over wages,benefits,and working conditions. 
B) Unions play a much larger role in the U.S.labor market now than they did in the past. 
C) Unions play a large role in many European countries. 
D) A union is a type of cartel. 
A) A union is a worker association that bargains with employers over wages,benefits,and working conditions. 
B) Unions play a much larger role in the U.S.labor market now than they did in the past. 
C) Unions play a large role in many European countries. 
D) A union is a type of cartel.

Question 20

Unions

Accepted Answer

A) do not affect the natural rate of unemployment. 
B) lower the wages of unionized workers. 
C) raise the profits of unionized firms. 
D) lower the wages of workers in industries without unions. 
A) do not affect the natural rate of unemployment. 
B) lower the wages of unionized workers. 
C) raise the profits of unionized firms. 
D) lower the wages of workers in industries without unions.

Exam 15: Unemployment: Unions and Collective Bargaining

Which of the following is not correct?

Which of the following is not correct?

Collective bargaining refers to

When a union bargains successfully with employers,in that industry,

There is a clear consensus among economists that unions are

Sam has no job but keeps applying to get a job with a business that is unionized.He is qualified and he finds the pay attractive,but the firm is not hiring.Sam is

Suppose that florists and landscape workers are not unionized.If florists unionize,then the wages of

In the absence of right-to-work laws,workers

Suppose that garbage collectors and landscaping workers have no unions.Now suppose that garbage collectors form unions.What does this do to the labor supply and wages of landscaping workers?

Which of the following do unions not cause?

Since the 1940's U.S.union membership has

If a union raises the wage in its industry above equilibrium then employment in that industry

Which of the following is correct?

Which of the following is not correct?

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then the wage rates will tend to

Economists have found that union workers earn what percent more than similar nonunion workers?

When a union raises the wage above the equilibrium level,it

Labor unions

Which of the following is not correct?

Unions

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion