Question 1

The earliest unions in the United States were

Accepted Answer

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

Question 2

-In the above figure, which wage rate will maximize union members' income?

Accepted Answer

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

Question 3

Which of the following would increase the demand for union labor?

Accepted Answer

A)  increasing worker productivity 
B)  increasing the demand for union made goods 
C)  decreasing the demand for non-union-manufactured goods 
D)  all of the above 
A)  increasing worker productivity 
B)  increasing the demand for union made goods 
C)  decreasing the demand for non-union-manufactured goods 
D)  all of the above

Question 4

A practice which might force employers to use more labor than they would otherwise is referred to as

Accepted Answer

A)  wall propping. 
B)  featherbedding. 
C)  mothballing. 
D)  yellow-dogging. 
A)  wall propping. 
B)  featherbedding. 
C)  mothballing. 
D)  yellow-dogging.

Question 5

A craft labor union is made up of

Accepted Answer

A)  groups of workers in an individual trade. 
B)  all the workers in a firm such as General Motors. 
C)  firms that employ similar labor skills. 
D)  an organization that controls the labor market in a particular industry. 
A)  groups of workers in an individual trade. 
B)  all the workers in a firm such as General Motors. 
C)  firms that employ similar labor skills. 
D)  an organization that controls the labor market in a particular industry.

Question 6

Marginal factor cost is

Accepted Answer

A)  the change in total costs due to a one-unit change in the quantity of the good produced. 
B)  the change in total costs due to a one-unit increase in the variable input. 
C)  the change in the price of an input when an additional unit of the input is hired. 
D)  the marginal cost of changing the rate of production in the long run. 
A)  the change in total costs due to a one-unit change in the quantity of the good produced. 
B)  the change in total costs due to a one-unit increase in the variable input. 
C)  the change in the price of an input when an additional unit of the input is hired. 
D)  the marginal cost of changing the rate of production in the long run.

Question 7

The United Steelworkers is an example of a(n)

Accepted Answer

A)  craft union. 
B)  industrial union. 
C)  public-sector union. 
D)  guild. 
A)  craft union. 
B)  industrial union. 
C)  public-sector union. 
D)  guild.

Question 8

The figure supports all of the following statements regarding the marginal factor cost curve for a monopsonist EXCEPT

Accepted Answer

A)  the monopsonist firm looks at a marginal cost curve, MFC, which slopes upward and is above its labor supply curve. 
B)  the marginal benefit of hiring additional workers is given by the firm's MRP curve. 
C)  the intersection of MFC with MRP, at point E, determines the number of workers hired. 
D)  a monopsonist cannot find the profit-maximizing quantity of labor demanded at E. 
A)  the monopsonist firm looks at a marginal cost curve, MFC, which slopes upward and is above its labor supply curve. 
B)  the marginal benefit of hiring additional workers is given by the firm's MRP curve. 
C)  the intersection of MFC with MRP, at point E, determines the number of workers hired. 
D)  a monopsonist cannot find the profit-maximizing quantity of labor demanded at E.

Question 9

Unions can increase labor productivity by

Accepted Answer

A)  maximizing the number of workers in the union. 
B)  reducing the supply of workers over time. 
C)  reducing conflicts between workers and management. 
D)  reducing the quantity of poorly made imports into the country. 
A)  maximizing the number of workers in the union. 
B)  reducing the supply of workers over time. 
C)  reducing conflicts between workers and management. 
D)  reducing the quantity of poorly made imports into the country.

Question 10

A monopsonist in the labor market has

Accepted Answer

A)  a perfectly elastic labor supply. 
B)  a decreasing average variable cost. 
C)  an upward sloping labor supply curve. 
D)  a downward sloping marginal revenue product curve. 
A)  a perfectly elastic labor supply. 
B)  a decreasing average variable cost. 
C)  an upward sloping labor supply curve. 
D)  a downward sloping marginal revenue product curve.

Question 11

Have unions been successful at raising wages for their members? What about raising wages for all workers?

Accepted Answer

Yes, they have been successful at raisin

Question 12

-In the above table, what is the marginal factor cost of the 5th worker?

Accepted Answer

A)  $22 
B)  $18 
C)  $90 
D)  $26 
A)  $22 
B)  $18 
C)  $90 
D)  $26

Question 13

Which of the following is legal under the Taft-Hartley Act?

Accepted Answer

A)  closed shops 
B)  collective bargaining 
C)  secondary boycotts 
D)  sympathy strikes 
A)  closed shops 
B)  collective bargaining 
C)  secondary boycotts 
D)  sympathy strikes

Question 14

-In the above table, if the marginal revenue product is $18, 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)  3; $18 
D)  4; $16 
A)  5; $18 
B)  3; $14 
C)  3; $18 
D)  4; $16

Question 15

Methods that are sometimes used by unions to increase wages of union workers include I. advertising to increase the demand for union-made goods.
II) campaigning against imports.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 16

The Taft-Hartley Act outlawed all of the following practices EXCEPT

Accepted Answer

A)  secondary boycotts. 
B)  union shops. 
C)  closed shops. 
D)  sympathy strikes. 
A)  secondary boycotts. 
B)  union shops. 
C)  closed shops. 
D)  sympathy strikes.

Question 17

The Congress of Industrial Organizations (CIO) was formed in 1938 by

Accepted Answer

A)  John L. Lewis. 
B)  Samuel Gompers. 
C)  Walter Reuther. 
D)  Ralph Nader. 
A)  John L. Lewis. 
B)  Samuel Gompers. 
C)  Walter Reuther. 
D)  Ralph Nader.

Question 18

-In the above figure, what is the wage rate the monopsonist will pay?

Accepted Answer

A)  W1 
B)  W2 
C)  W3 
D)  W4 
A)  W1 
B)  W2 
C)  W3 
D)  W4

Question 19

Which of the following is NOT a wage or employment strategy that a union would follow?

Accepted Answer

A)  Set a maximum wage rate such that a shortage of workers will result. 
B)  Set a wage rate such that all workers that want to find a job can find a job. 
C)  Set a wage rate that will maximize the income of its members. 
D)  Set a wage rate that will maximize the income of only some of its members. 
A)  Set a maximum wage rate such that a shortage of workers will result. 
B)  Set a wage rate such that all workers that want to find a job can find a job. 
C)  Set a wage rate that will maximize the income of its members. 
D)  Set a wage rate that will maximize the income of only some of its members.

Question 20

The type of labor agreement that requires workers to be union members prior to being considered for employment is a

Accepted Answer

A)  right-to-work agreement. 
B)  closed-shop agreement. 
C)  union shop agreement. 
D)  open-shop agreement. 
A)  right-to-work agreement. 
B)  closed-shop agreement. 
C)  union shop agreement. 
D)  open-shop agreement.

Exam 29: Unions and Labor Market Monopoly Power

The earliest unions in the United States were

-In the above figure, which wage rate will maximize union members' income?

Which of the following would increase the demand for union labor?

A practice which might force employers to use more labor than they would otherwise is referred to as

A craft labor union is made up of

Marginal factor cost is

The United Steelworkers is an example of a(n)

The figure supports all of the following statements regarding the marginal factor cost curve for a monopsonist EXCEPT

Unions can increase labor productivity by

A monopsonist in the labor market has

Have unions been successful at raising wages for their members? What about raising wages for all workers?

-In the above table, what is the marginal factor cost of the 5th worker?

Which of the following is legal under the Taft-Hartley Act?

-In the above table, if the marginal revenue product is $18, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

Methods that are sometimes used by unions to increase wages of union workers include I. advertising to increase the demand for union-made goods. II) campaigning against imports.

The Taft-Hartley Act outlawed all of the following practices EXCEPT

The Congress of Industrial Organizations (CIO) was formed in 1938 by

-In the above figure, what is the wage rate the monopsonist will pay?

Which of the following is NOT a wage or employment strategy that a union would follow?

The type of labor agreement that requires workers to be union members prior to being considered for employment is a

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