Question 1

Which of the following is a correct statement about unions in the United States?

Accepted Answer

A)  The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. 
B)  Half of the top ten U.S. unions now have members who work in service and government occupations. 
C)  Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. 
D)  Half of all U.S. workers are union members. 
A)  The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. 
B)  Half of the top ten U.S. unions now have members who work in service and government occupations. 
C)  Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. 
D)  Half of all U.S. workers are union members.

Question 2

Featherbedding refers to

Accepted Answer

A)  training programs initiated by the unions to make the less-skilled workers more productive. 
B)  attempts by management to reduce workers' interest in a union. 
C)  the practice that forces employers to use more labor than they would otherwise. 
D)  the amount of the union premium. 
A)  training programs initiated by the unions to make the less-skilled workers more productive. 
B)  attempts by management to reduce workers' interest in a union. 
C)  the practice that forces employers to use more labor than they would otherwise. 
D)  the amount of the union premium.

Question 3

At the profit-maximizing level of employment, the monopsonist

Accepted Answer

A)  pays a wage equal to MRP. 
B)  pays a wage greater than MRP. 
C)  pays a wage less than MRP. 
D)  pays a wage equal to MFC. 
A)  pays a wage equal to MRP. 
B)  pays a wage greater than MRP. 
C)  pays a wage less than MRP. 
D)  pays a wage equal to MFC.

Question 4

Discuss the significant laws passed since the Great Depression that affect labor-management relations.

Accepted Answer

The Taft-Hartley Act of 1947 allowed sta

Question 5

A company can hire non-union workers, but a condition of their employment is that they must join the union within their first 90 days on the job. This is an example of a

Accepted Answer

A)  right-to-work law. 
B)  closed-shop. 
C)  union shop. 
D)  voluntary craft union. 
A)  right-to-work law. 
B)  closed-shop. 
C)  union shop. 
D)  voluntary craft union.

Question 6

The National Labor Relations Act (Wagner Act)

Accepted Answer

A)  prohibited the creation of company unions. 
B)  guaranteed workers the right to organize. 
C)  set the minimum wage at $5.15 an hour. 
D)  set the length of the workweek at 40 hours. 
A)  prohibited the creation of company unions. 
B)  guaranteed workers the right to organize. 
C)  set the minimum wage at $5.15 an hour. 
D)  set the length of the workweek at 40 hours.

Question 7

A union could raise wages without causing unemployment of union members if it can increase demand for union labor. How might this goal be achieved?

Accepted Answer

If unions can increase the labor product

Question 8

The United Steel Workers Union is an example of

Accepted Answer

A)  a craft union. 
B)  an auto union. 
C)  an industrial union. 
D)  a blue collar union. 
A)  a craft union. 
B)  an auto union. 
C)  an industrial union. 
D)  a blue collar union.

Question 9

-According to the above table, the marginal factor cost of the eighth worker is

Accepted Answer

A)  $27.00. 
B)  $48.00. 
C)  $168.00. 
D)  $216.00. 
A)  $27.00. 
B)  $48.00. 
C)  $168.00. 
D)  $216.00.

Question 10

The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the

Accepted Answer

A)  Wagner Act. 
B)  Landrum-Griffin Act. 
C)  National Industrial Recovery Act. 
D)  Taft-Hartley Act. 
A)  Wagner Act. 
B)  Landrum-Griffin Act. 
C)  National Industrial Recovery Act. 
D)  Taft-Hartley Act.

Question 11

-Refer to the above figure. The wage rate under perfect competition is

Accepted Answer

A)  W2. 
B)  W3. 
C)  W4. 
D)  W5. 
A)  W2. 
B)  W3. 
C)  W4. 
D)  W5.

Question 12

Which of the following types of unions did the CIO promote?

Accepted Answer

A)  craft unions 
B)  public sector unions 
C)  industrial unions 
D)  military unions 
A)  craft unions 
B)  public sector unions 
C)  industrial unions 
D)  military unions

Question 13

The 1935 Act granting workers the right to form unions and bargain collectively is known as

Accepted Answer

A)  the National Labor Relations Act or Wagner Act. 
B)  the Wheeler Act. 
C)  the Taft-Hartley Act. 
D)  the Modernization Act. 
A)  the National Labor Relations Act or Wagner Act. 
B)  the Wheeler Act. 
C)  the Taft-Hartley Act. 
D)  the Modernization Act.

Question 14

A right-to-work law is

Accepted Answer

A)  a federal law making the closed shop illegal. 
B)  a federal law making the union shop illegal. 
C)  a state law making the union shop illegal. 
D)  a state law making the open shop illegal. 
A)  a federal law making the closed shop illegal. 
B)  a federal law making the union shop illegal. 
C)  a state law making the union shop illegal. 
D)  a state law making the open shop illegal.

Question 15

Strikebreakers

Accepted Answer

A)  can reduce the bargaining power of a union. 
B)  can strengthen the bargaining power of a union. 
C)  make a union negotiation invalid. 
D)  make a strike permanent. 
A)  can reduce the bargaining power of a union. 
B)  can strengthen the bargaining power of a union. 
C)  make a union negotiation invalid. 
D)  make a strike permanent.

Question 16

A monopsonist is

Accepted Answer

A)  a firm with monopoly power in the local area. 
B)  a firm that has a unionized labor force. 
C)  a single seller of an input. 
D)  a single buyer of an input. 
A)  a firm with monopoly power in the local area. 
B)  a firm that has a unionized labor force. 
C)  a single seller of an input. 
D)  a single buyer of an input.

Question 17

A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

Accepted Answer

A)  MFC = MRPm. 
B)  a perfectly elastic labor supply = MRP. 
C)  a perfectly inelastic labor supply = perfectly inelastic labor demand. 
D)  where supply of labor = demand for labor. 
A)  MFC = MRPm. 
B)  a perfectly elastic labor supply = MRP. 
C)  a perfectly inelastic labor supply = perfectly inelastic labor demand. 
D)  where supply of labor = demand for labor.

Question 18

To reduce labor surplus above the equilibrium union wage level, a union may do all of the following EXCEPT

Accepted Answer

A)  lengthen apprenticeship period. 
B)  assign jobs based on seniority. 
C)  limit the number of new members accepted. 
D)  encourage nonunion members to join the union. 
A)  lengthen apprenticeship period. 
B)  assign jobs based on seniority. 
C)  limit the number of new members accepted. 
D)  encourage nonunion members to join the union.

Question 19

Deregulation has contributed to

Accepted Answer

A)  an increase in union membership. 
B)  declines in union membership. 
C)  higher wages in unions. 
D)  an increase in union power. 
A)  an increase in union membership. 
B)  declines in union membership. 
C)  higher wages in unions. 
D)  an increase in union power.

Question 20

The leadership of unions must recognize that they face

Accepted Answer

A)  an economic system that is hostile to the interests of workers. 
B)  a no-win situation whenever they think a strike is necessary. 
C)  a fundamental trade-off between higher wages for members and higher taxes for members. 
D)  a fundamental trade-off between higher wages for members and fewer jobs for members. 
A)  an economic system that is hostile to the interests of workers. 
B)  a no-win situation whenever they think a strike is necessary. 
C)  a fundamental trade-off between higher wages for members and higher taxes for members. 
D)  a fundamental trade-off between higher wages for members and fewer jobs for members.

Exam 29: Unions and Labor Market Monopoly Power

Which of the following is a correct statement about unions in the United States?

Featherbedding refers to

At the profit-maximizing level of employment, the monopsonist

Discuss the significant laws passed since the Great Depression that affect labor-management relations.

A company can hire non-union workers, but a condition of their employment is that they must join the union within their first 90 days on the job. This is an example of a

The National Labor Relations Act (Wagner Act)

A union could raise wages without causing unemployment of union members if it can increase demand for union labor. How might this goal be achieved?

The United Steel Workers Union is an example of

-According to the above table, the marginal factor cost of the eighth worker is

The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the

-Refer to the above figure. The wage rate under perfect competition is

Which of the following types of unions did the CIO promote?

The 1935 Act granting workers the right to form unions and bargain collectively is known as

A right-to-work law is

Strikebreakers

A monopsonist is

A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

To reduce labor surplus above the equilibrium union wage level, a union may do all of the following EXCEPT

Deregulation has contributed to

The leadership of unions must recognize that they face

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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