Question 1

A right-to-work state is one in which

Accepted Answer

A)  unions are illegal. 
B)  there is guaranteed employment for all citizens. 
C)  the union shop is prohibited. 
D)  the closed shop is permitted. 
A)  unions are illegal. 
B)  there is guaranteed employment for all citizens. 
C)  the union shop is prohibited. 
D)  the closed shop is permitted.

Question 2

Distinguish between a closed shop and a union shop. Are either or both shops legal? Explain.

Accepted Answer

A closed shop is a situation in which a

Question 3

-According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  5 
B)  6 
C)  7 
D)  8 
A)  5 
B)  6 
C)  7 
D)  8

Question 4

Economists argue that the union wage advantage

Accepted Answer

A)  has been estimated to be 100% in the private sector. 
B)  in the private sector is a 4% increase in wages for union workers over nonunion workers. 
C)  reached its height in 2000 in the private sector. 
D)  has been close to zero since World War II in the private sector. 
A)  has been estimated to be 100% in the private sector. 
B)  in the private sector is a 4% increase in wages for union workers over nonunion workers. 
C)  reached its height in 2000 in the private sector. 
D)  has been close to zero since World War II in the private sector.

Question 5

Monopsonistic exploitation refers to

Accepted Answer

A)  the payment to the resource equal to MFC. 
B)  the payment to a resource less than MRP. 
C)  the payment to a resource equal to MRP. 
D)  the payment to a resource above MRP. 
A)  the payment to the resource equal to MFC. 
B)  the payment to a resource less than MRP. 
C)  the payment to a resource equal to MRP. 
D)  the payment to a resource above MRP.

Question 6

Collective bargaining contracts between management and the union negotiators

Accepted Answer

A)  also apply to the workers who are not members of the union. 
B)  usually are settled only after a strike. 
C)  cover wages only. 
D)  cover wages and fringe benefits only. 
A)  also apply to the workers who are not members of the union. 
B)  usually are settled only after a strike. 
C)  cover wages only. 
D)  cover wages and fringe benefits only.

Question 7

A business enterprise that allows the hiring of nonunion members conditional on their joining the union 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 8

-In the above table, what is the marginal factor cost of the 6th worker?

Accepted Answer

A)  $30 
B)  $18 
C)  $120 
D)  $20 
A)  $30 
B)  $18 
C)  $120 
D)  $20

Question 9

Distinguish between craft unions and industrial unions.

Accepted Answer

Craft unions are composed of workers who

Question 10

Which of the following best describes the effects of unions in the United States today?

Accepted Answer

A)  The average union worker works more hours but earns a lower annual income than the average nonunion worker. 
B)  The average union worker works fewer hours but earns a higher annual income than the average nonunion worker. 
C)  The average union worker works more hours and earns a higher annual income than the average nonunion worker. 
D)  The average union worker works fewer hours and earns a lower annual income than the average nonunion worker. 
A)  The average union worker works more hours but earns a lower annual income than the average nonunion worker. 
B)  The average union worker works fewer hours but earns a higher annual income than the average nonunion worker. 
C)  The average union worker works more hours and earns a higher annual income than the average nonunion worker. 
D)  The average union worker works fewer hours and earns a lower annual income than the average nonunion worker.

Question 11

If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment

Accepted Answer

A)  will increase. 
B)  will remain constant. 
C)  will decrease. 
D)  may increase or decrease. 
A)  will increase. 
B)  will remain constant. 
C)  will decrease. 
D)  may increase or decrease.

Question 12

The Taft-Hartley Act made all of the following illegal EXCEPT

Accepted Answer

A)  jurisdictional disputes. 
B)  the Congress of Industrial Organizations. 
C)  make-to-work laws. 
D)  closed shops. 
A)  jurisdictional disputes. 
B)  the Congress of Industrial Organizations. 
C)  make-to-work laws. 
D)  closed shops.

Question 13

The monopsonist will employ labor to the point at which the

Accepted Answer

A)  marginal factor cost equals the marginal revenue product of labor. 
B)  marginal revenue product equals the wage rate. 
C)  marginal cost of output equals the marginal revenue. 
D)  demand equals the supply of labor. 
A)  marginal factor cost equals the marginal revenue product of labor. 
B)  marginal revenue product equals the wage rate. 
C)  marginal cost of output equals the marginal revenue. 
D)  demand equals the supply of labor.

Question 14

If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be

Accepted Answer

A)  zero. 
B)  numerically equal to 1. 
C)  finite, but greater than -1. 
D)  positive, but less than 1. 
A)  zero. 
B)  numerically equal to 1. 
C)  finite, but greater than -1. 
D)  positive, but less than 1.

Question 15

Unions can ration the excess supply of labor generated by the establishment of a wage that is above the competitive wage by

Accepted Answer

A)  lengthening the time period for apprenticeship programs. 
B)  lowering union dues. 
C)  encouraging older workers to take early retirement. 
D)  having more intensive membership drives to ensure a larger proportion of workers are covered by the union contract. 
A)  lengthening the time period for apprenticeship programs. 
B)  lowering union dues. 
C)  encouraging older workers to take early retirement. 
D)  having more intensive membership drives to ensure a larger proportion of workers are covered by the union contract.

Question 16

A monopsonist is

Accepted Answer

A)  a single buyer. 
B)  a single seller. 
C)  a unionized labor market. 
D)  a non-profit-maximizing firm. 
A)  a single buyer. 
B)  a single seller. 
C)  a unionized labor market. 
D)  a non-profit-maximizing firm.

Question 17

If you get a job and are never required to join the union, this is known as a(n)

Accepted Answer

A)  closed shop. 
B)  open shop. 
C)  agency shop. 
D)  union shop. 
A)  closed shop. 
B)  open shop. 
C)  agency shop. 
D)  union shop.

Question 18

At any quantity, the marginal factor cost is always

Accepted Answer

A)  parallel to the marginal revenue product. 
B)  below the labor supply curve. 
C)  above the labor supply curve. 
D)  above the labor demand curve. 
A)  parallel to the marginal revenue product. 
B)  below the labor supply curve. 
C)  above the labor supply curve. 
D)  above the labor demand curve.

Question 19

The American Federation of State, County, Government and Municipal Employees is an example of a(n)

Accepted Answer

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

Question 20

A bilateral monopoly means

Accepted Answer

A)  that a monopsonistic employer bargains with two unions. 
B)  that a monopsonistic employer bargains with both an industrial and a craft union. 
C)  that a monopsonistic employer bargains with a monopoly. 
D)  that an industrial union bargains with a two-firm oligopoly. 
A)  that a monopsonistic employer bargains with two unions. 
B)  that a monopsonistic employer bargains with both an industrial and a craft union. 
C)  that a monopsonistic employer bargains with a monopoly. 
D)  that an industrial union bargains with a two-firm oligopoly.

Exam 29: Unions and Labor Market Monopoly Power

A right-to-work state is one in which

Distinguish between a closed shop and a union shop. Are either or both shops legal? Explain.

-According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?

Economists argue that the union wage advantage

Monopsonistic exploitation refers to

Collective bargaining contracts between management and the union negotiators

A business enterprise that allows the hiring of nonunion members conditional on their joining the union is

-In the above table, what is the marginal factor cost of the 6th worker?

Distinguish between craft unions and industrial unions.

Which of the following best describes the effects of unions in the United States today?

If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment

The Taft-Hartley Act made all of the following illegal EXCEPT

The monopsonist will employ labor to the point at which the

If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be

Unions can ration the excess supply of labor generated by the establishment of a wage that is above the competitive wage by

A monopsonist is

If you get a job and are never required to join the union, this is known as a(n)

At any quantity, the marginal factor cost is always

The American Federation of State, County, Government and Municipal Employees is an example of a(n)

A bilateral monopoly means

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

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The Firm: Cost and Output Determination

Perfect Competition

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Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

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Environmental Economics

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