Question 1

Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, 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.

Question 2

If a union limits its size to the number of employed members it had when the union was first formed, over time there will be

Accepted Answer

A)  an increase in the supply of union labor. 
B)  falling wages as demand for workers increases. 
C)  rising wages as demand for workers increases and the supply increases proportionally. 
D)  rising wages as demand for workers increases but some potential workers are denied a place in the union. 
A)  an increase in the supply of union labor. 
B)  falling wages as demand for workers increases. 
C)  rising wages as demand for workers increases and the supply increases proportionally. 
D)  rising wages as demand for workers increases but some potential workers are denied a place in the union.

Question 3

Which piece of legislation allowed states to pass right-to-work laws?

Accepted Answer

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

Question 4

-Refer to the above table. If the marginal revenue product is $21, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

Accepted Answer

A)  1; $17 
B)  2; $19 
C)  2; $21 
D)  3; $21 
A)  1; $17 
B)  2; $19 
C)  2; $21 
D)  3; $21

Question 5

A primary objective of labor unions is to

Accepted Answer

A)  secure equal pay for its members. 
B)  have equal power with their employer. 
C)  seek better pay and improved work conditions. 
D)  all of the above. 
E)  none of the above. 
A)  secure equal pay for its members. 
B)  have equal power with their employer. 
C)  seek better pay and improved work conditions. 
D)  all of the above. 
E)  none of the above.

Question 6

Today, the share of union membership among public sector workers in the United States is

Accepted Answer

A)  more than twice the share of union membership among private sector workers. 
B)  zero. 
C)  less than half of the share of union membership among private sector workers. 
D)  the same as the share of union membership among private sector workers. 
A)  more than twice the share of union membership among private sector workers. 
B)  zero. 
C)  less than half of the share of union membership among private sector workers. 
D)  the same as the share of union membership among private sector workers.

Question 7

A business enterprise in which employees must belong to the union before they can be hired is called a(n)

Accepted Answer

A)  craft union. 
B)  industrial union. 
C)  closed shop. 
D)  union shop. 
A)  craft union. 
B)  industrial union. 
C)  closed shop. 
D)  union shop.

Question 8

-From the information in the above table, calculate the marginal factor cost of the third worker.

Accepted Answer

A)  $24.00 
B)  $36.00 
C)  $18.00 
D)  $12.00 
A)  $24.00 
B)  $36.00 
C)  $18.00 
D)  $12.00

Question 9

Unions face a trade-off between higher wages and

Accepted Answer

A)  fewer available positions. 
B)  more available positions. 
C)  equipment. 
D)  none of the above. 
A)  fewer available positions. 
B)  more available positions. 
C)  equipment. 
D)  none of the above.

Question 10

Which of the following is NOT considered to be a benefit of unionism?

Accepted Answer

A)  increased featherbedding 
B)  greater workplace safety 
C)  higher workforce stability 
D)  provision of arbitration and grievance procedures 
A)  increased featherbedding 
B)  greater workplace safety 
C)  higher workforce stability 
D)  provision of arbitration and grievance procedures

Question 11

-In the above table, if the marginal revenue product is $14, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 12

A state with "right-to-work" laws would most likely have

Accepted Answer

A)  higher employment levels than neighboring states without such laws. 
B)  more workers' benefits than neighboring states without such laws. 
C)  more union workers than neighboring states without such laws. 
D)  more worker safety requirements than neighboring states without such laws. 
A)  higher employment levels than neighboring states without such laws. 
B)  more workers' benefits than neighboring states without such laws. 
C)  more union workers than neighboring states without such laws. 
D)  more worker safety requirements than neighboring states without such laws.

Question 13

When workers are paid a wage that is less than their contribution to a monopsonist's revenues

Accepted Answer

A)  this is sometimes referred to monopsonistic exploitation. 
B)  this is sometimes referred to as an incentive. 
C)  they seek part time employment. 
D)  they file a grievance with their union representative. 
A)  this is sometimes referred to monopsonistic exploitation. 
B)  this is sometimes referred to as an incentive. 
C)  they seek part time employment. 
D)  they file a grievance with their union representative.

Question 14

A union of all workers from a particular industry is a(n)

Accepted Answer

A)  craft union. 
B)  conglomerate union. 
C)  industrial union. 
D)  expansive union. 
A)  craft union. 
B)  conglomerate union. 
C)  industrial union. 
D)  expansive union.

Question 15

A disagreement involving two or more unions over which should have control over a particular firm or industry is

Accepted Answer

A)  a closed shop. 
B)  a union shop. 
C)  a jurisdictional dispute. 
D)  an industrial union. 
A)  a closed shop. 
B)  a union shop. 
C)  a jurisdictional dispute. 
D)  an industrial union.

Question 16

A monopsonist wants to purchase more labor. Which of the following statements is TRUE?

Accepted Answer

A)  The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. 
B)  The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. 
C)  The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. 
D)  The monopsonist will have to raise the wage rate for current and additional employees. 
A)  The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. 
B)  The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. 
C)  The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. 
D)  The monopsonist will have to raise the wage rate for current and additional employees.

Question 17

If the goal of the union is to maximize member income, then

Accepted Answer

A)  a wage rate will be set in the inelastic portion of the demand curve. 
B)  a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive. 
C)  a wage rate will be set at the point at which marginal revenue equal zero. 
D)  the supply of labor must be inelastic. 
A)  a wage rate will be set in the inelastic portion of the demand curve. 
B)  a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive. 
C)  a wage rate will be set at the point at which marginal revenue equal zero. 
D)  the supply of labor must be inelastic.

Question 18

The most powerful tool unions have at their disposal when bargaining with management is

Accepted Answer

A)  the Taft-Hartley Act. 
B)  the ability to strike. 
C)  the secondary boycott. 
D)  the power of pure competition. 
A)  the Taft-Hartley Act. 
B)  the ability to strike. 
C)  the secondary boycott. 
D)  the power of pure competition.

Question 19

A profit-maximizing monopsonist will hire workers up to the point at which

Accepted Answer

A)  W = MRP. 
B)  MRP = MFC. 
C)  W = MFC. 
D)  W = MRP = MFC. 
A)  W = MRP. 
B)  MRP = MFC. 
C)  W = MFC. 
D)  W = MRP = MFC.

Question 20

The marginal factor cost of a monopsonist is

Accepted Answer

A)  upward sloping and the same as the supply curve. 
B)  downward sloping when the supply curve of labor is upward sloping. 
C)  upward sloping and rises faster than the supply curve. 
D)  horizontal. 
A)  upward sloping and the same as the supply curve. 
B)  downward sloping when the supply curve of labor is upward sloping. 
C)  upward sloping and rises faster than the supply curve. 
D)  horizontal.

Exam 29: Unions and Labor Market Monopoly Power

Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, are called

If a union limits its size to the number of employed members it had when the union was first formed, over time there will be

Which piece of legislation allowed states to pass right-to-work laws?

-Refer to the above table. If the marginal revenue product is $21, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

A primary objective of labor unions is to

Today, the share of union membership among public sector workers in the United States is

A business enterprise in which employees must belong to the union before they can be hired is called a(n)

-From the information in the above table, calculate the marginal factor cost of the third worker.

Unions face a trade-off between higher wages and

Which of the following is NOT considered to be a benefit of unionism?

-In the above table, if the marginal revenue product is $14, how many workers will the profit maximizing monopsonist hire?

A state with "right-to-work" laws would most likely have

When workers are paid a wage that is less than their contribution to a monopsonist's revenues

A union of all workers from a particular industry is a(n)

A disagreement involving two or more unions over which should have control over a particular firm or industry is

A monopsonist wants to purchase more labor. Which of the following statements is TRUE?

If the goal of the union is to maximize member income, then

The most powerful tool unions have at their disposal when bargaining with management is

A profit-maximizing monopsonist will hire workers up to the point at which

The marginal factor cost of a monopsonist is

The Nature of Economics

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