Question 1

A labor union composed of workers in the same occupation is called

Accepted Answer

A)  a craft union. 
B)  an industrial union. 
C)  a company union. 
D)  a closed shop. 
A)  a craft union. 
B)  an industrial union. 
C)  a company union. 
D)  a closed shop. A

Question 2

What was the overall trend of U.S. union membership beginning the 1960s? What was the main reason behind that trend?

Accepted Answer

Since the 1960s, union membership in the United States has declined as a percentage of the labor force, reaching about 12 percent today. The absolute number of union members has also declined recently. The main reason for the decline in union membership is the decline in manufacturing employment, which has traditionally accounted for a large share of total union membership.

Question 3

Which of the following is the largest union in the United States?

Accepted Answer

A)  International Brotherhood of Teamsters 
B)  International Brotherhood of Electrical Workers 
C)  National Education Association 
D)  American Federation of State, County, and Municipal Employees 
A)  International Brotherhood of Teamsters 
B)  International Brotherhood of Electrical Workers 
C)  National Education Association 
D)  American Federation of State, County, and Municipal Employees C

Question 4

Featherbedding refers to

Accepted Answer

A)  the practice of laying off union activists. 
B)  increased international competition and its negative impact on trade unions. 
C)  union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. 
D)  the practice of inducing a firm to use more than the cost-minimizing level of labor. 
A)  the practice of laying off union activists. 
B)  increased international competition and its negative impact on trade unions. 
C)  union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. 
D)  the practice of inducing a firm to use more than the cost-minimizing level of labor.

Question 5

Which statement is most TRUE about the impact of unions on wage levels in the United States?

Accepted Answer

A)  Unions have had no impact on the wage levels of their workers. 
B)  Unions have tended to increase the hourly wage rates of their members relative to nonunion workers by an average of about $3.20. 
C)  Unions have contributed to increased income inequality in the United States by raising corporate profits. 
D)  The union/nonunion wage differential tends to decrease during a recession. 
A)  Unions have had no impact on the wage levels of their workers. 
B)  Unions have tended to increase the hourly wage rates of their members relative to nonunion workers by an average of about $3.20. 
C)  Unions have contributed to increased income inequality in the United States by raising corporate profits. 
D)  The union/nonunion wage differential tends to decrease during a recession.

Question 6

A right-to-work law makes it illegal for

Accepted Answer

A)  employers to refuse to hire union workers. 
B)  union membership to be a requirement for continued employment in any establishment. 
C)  union membership to be denied on the basis of race, gender, or national origin. 
D)  a union to exist in a state. 
A)  employers to refuse to hire union workers. 
B)  union membership to be a requirement for continued employment in any establishment. 
C)  union membership to be denied on the basis of race, gender, or national origin. 
D)  a union to exist in a state.

Question 7

Any practice that forces employers to use more labor than they would otherwise use is

Accepted Answer

A)  closed shop. 
B)  monopolistic exploitation. 
C)  a craft union. 
D)  featherbedding. 
A)  closed shop. 
B)  monopolistic exploitation. 
C)  a craft union. 
D)  featherbedding.

Question 8

The other name for the National Labor Relations Act of 1935 is

Accepted Answer

A)  the Wagner Act. 
B)  the Taft-Hartley Act. 
C)  the Clayton Act. 
D)  the Wheeler-Lea Act. 
A)  the Wagner Act. 
B)  the Taft-Hartley Act. 
C)  the Clayton Act. 
D)  the Wheeler-Lea Act.

Question 9

Featherbedding is the term for

Accepted Answer

A)  any practice that forces employers to use more labor than they would otherwise. 
B)  training programs initiated by unions to make their less-skilled members more productive. 
C)  the practice of trying to recruit union members among public employees. 
D)  attempts by management to eliminate a union. 
A)  any practice that forces employers to use more labor than they would otherwise. 
B)  training programs initiated by unions to make their less-skilled members more productive. 
C)  the practice of trying to recruit union members among public employees. 
D)  attempts by management to eliminate a union.

Question 10

The monopsonistic exploitation of labor refers to

Accepted Answer

A)  the reduction in total output from monopoly in the product market. 
B)  the union wage differential. 
C)  workers being paid a wage less than their marginal revenue product. 
D)  the reduction in employment resulting from union wage setting. 
A)  the reduction in total output from monopoly in the product market. 
B)  the union wage differential. 
C)  workers being paid a wage less than their marginal revenue product. 
D)  the reduction in employment resulting from union wage setting.

Question 11

Laws that make it illegal to require union membership as a condition of continuing employment in a firm are

Accepted Answer

A)  union shop laws. 
B)  right-to-work laws. 
C)  closed-shop laws. 
D)  jurisdictional laws. 
A)  union shop laws. 
B)  right-to-work laws. 
C)  closed-shop laws. 
D)  jurisdictional laws.

Question 12

-In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

Accepted Answer

A)  5; $18 
B)  3; $14 
C)  4; $22 
D)  4; $16 
A)  5; $18 
B)  3; $14 
C)  4; $22 
D)  4; $16

Question 13

-In the above figure, which wage rate yields the highest union employment?

Accepted Answer

A)  W1 
B)  W2 
C)  W3 
D)  W2 - W1 
A)  W1 
B)  W2 
C)  W3 
D)  W2 - W1

Question 14

A benefit of unions is that they

Accepted Answer

A)  increase firm profits. 
B)  increase the stability of the workforce. 
C)  increase wage inequality. 
D)  restrict the labor market. 
A)  increase firm profits. 
B)  increase the stability of the workforce. 
C)  increase wage inequality. 
D)  restrict the labor market.

Question 15

The largest labor union in the United States is the

Accepted Answer

A)  National Education Association. 
B)  International Brotherhood of Teamsters. 
C)  United Food and Commercial Workers International Union. 
D)  Service Employees International Union. 
A)  National Education Association. 
B)  International Brotherhood of Teamsters. 
C)  United Food and Commercial Workers International Union. 
D)  Service Employees International Union.

Question 16

The percentage of U.S. workers in the private sector who belong to unions is currently

Accepted Answer

A)  greater than 70 percent. 
B)  approximately 55 percent. 
C)  approximately 25 percent. 
D)  approximately 11 percent. 
A)  greater than 70 percent. 
B)  approximately 55 percent. 
C)  approximately 25 percent. 
D)  approximately 11 percent.

Question 17

The main difference between a monopsonist and a competitive buyer of labor is that

Accepted Answer

A)  the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers. 
B)  the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers. 
C)  the competitor is a small firm while the monopsonist is a large firm. 
D)  the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets. 
A)  the competitor can hire as many workers as it wants at the going wage while a monopsonist can force wages down when hiring additional workers. 
B)  the competitor can hire as many workers as it wants at the going wage while a monopsonist must raise wages to hire additional workers. 
C)  the competitor is a small firm while the monopsonist is a large firm. 
D)  the competitor is also a competitor in product markets while the monopsonist is also a monopoly in product markets.

Question 18

Discuss the benefits of unions.

Accepted Answer

Some economists argue that unions probab

Question 19

If a union succeeds in increasing the wage rate by restricting labor supply, then

Accepted Answer

A)  all of its members will be better off. 
B)  some members may lose their jobs. 
C)  all of its members will be worse off. 
D)  more of its members will be employed. 
A)  all of its members will be better off. 
B)  some members may lose their jobs. 
C)  all of its members will be worse off. 
D)  more of its members will be employed.

Question 20

Labor unions that consist of workers from a particular industry, such as automobile manufacturing, are called

Accepted Answer

A)  craft unions. 
B)  industrial unions. 
C)  collective unions. 
D)  closed unions. 
A)  craft unions. 
B)  industrial unions. 
C)  collective unions. 
D)  closed unions.

Exam 29: Unions and Labor Market Monopoly Power

A labor union composed of workers in the same occupation is called

What was the overall trend of U.S. union membership beginning the 1960s? What was the main reason behind that trend?

Which of the following is the largest union in the United States?

Featherbedding refers to

Which statement is most TRUE about the impact of unions on wage levels in the United States?

A right-to-work law makes it illegal for

Any practice that forces employers to use more labor than they would otherwise use is

The other name for the National Labor Relations Act of 1935 is

Featherbedding is the term for

The monopsonistic exploitation of labor refers to

Laws that make it illegal to require union membership as a condition of continuing employment in a firm are

-In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

-In the above figure, which wage rate yields the highest union employment?

A benefit of unions is that they

The largest labor union in the United States is the

The percentage of U.S. workers in the private sector who belong to unions is currently

The main difference between a monopsonist and a competitive buyer of labor is that

Discuss the benefits of unions.

If a union succeeds in increasing the wage rate by restricting labor supply, then

Labor unions that consist of workers from a particular industry, such as automobile manufacturing, are called

The Nature of Economics

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