Question 1

A jurisdictional dispute means that

Accepted Answer

A)  members of a union disagree on the outcome of union elections. 
B)  a higher court reversed the decision of a lower court in a case brought by a union. 
C)  a union leadership and membership cannot agree on an issue. 
D)  two unions disagree on which should represent workers in a particular industry. 
A)  members of a union disagree on the outcome of union elections. 
B)  a higher court reversed the decision of a lower court in a case brought by a union. 
C)  a union leadership and membership cannot agree on an issue. 
D)  two unions disagree on which should represent workers in a particular industry.

Question 2

The first labor unions in the United States were

Accepted Answer

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

Question 3

The CIO was formed as a(n)

Accepted Answer

A)  closed shop. 
B)  association of industrial unions. 
C)  union shop. 
D)  bilateral monopoly. 
A)  closed shop. 
B)  association of industrial unions. 
C)  union shop. 
D)  bilateral monopoly.

Question 4

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

Accepted Answer

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

Question 5

If a union negotiated a wage above the market equilibrium wage, we would find

Accepted Answer

A)  a surplus of laborers at the negotiated wage. 
B)  a shortage of laborers at the negotiated wage. 
C)  higher efficiency of labor at the negotiated wage. 
D)  lower worker productivity at the negotiated wage. 
A)  a surplus of laborers at the negotiated wage. 
B)  a shortage of laborers at the negotiated wage. 
C)  higher efficiency of labor at the negotiated wage. 
D)  lower worker productivity at the negotiated wage.

Question 6

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

Accepted Answer

A)  $24.00. 
B)  $126.00. 
C)  $42.00. 
D)  $168.00. 
A)  $24.00. 
B)  $126.00. 
C)  $42.00. 
D)  $168.00.

Question 7

A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is

Accepted Answer

A)  ten cents. 
B)  $10.00. 
C)  $10.10. 
D)  $15.10. 
A)  ten cents. 
B)  $10.00. 
C)  $10.10. 
D)  $15.10.

Question 8

Bargaining between the management of a company and the management of a union is

Accepted Answer

A)  a closed shop. 
B)  a bilateral monopoly. 
C)  a craft union. 
D)  collective bargaining. 
A)  a closed shop. 
B)  a bilateral monopoly. 
C)  a craft union. 
D)  collective bargaining.

Question 9

The impact of a strike is limited to the ability of the union to

Accepted Answer

A)  prevent replacement workers from continuing their work. 
B)  lower its wage demands of non-union members. 
C)  control the pension fund. 
D)  none of the above. 
A)  prevent replacement workers from continuing their work. 
B)  lower its wage demands of non-union members. 
C)  control the pension fund. 
D)  none of the above.

Question 10

In the United States the difference between union and non-union wages

Accepted Answer

A)  does not exist. 
B)  currently averages about more than 100 percent. 
C)  has been narrowing. 
D)  tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees. 
A)  does not exist. 
B)  currently averages about more than 100 percent. 
C)  has been narrowing. 
D)  tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees.

Question 11

The ultimate threat of a union is

Accepted Answer

A)  the lockout. 
B)  the President's power granted by the Taft-Hartley Act. 
C)  the unity of spirit of the union membership. 
D)  the strike. 
A)  the lockout. 
B)  the President's power granted by the Taft-Hartley Act. 
C)  the unity of spirit of the union membership. 
D)  the strike.

Question 12

Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.

Accepted Answer

@#IMG-DLM& Refer to the above figure. Under perfec

Question 13

-In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?

Accepted Answer

A)  Q1 
B)  Q2 
C)  Q3 
D)  Q4 
A)  Q1 
B)  Q2 
C)  Q3 
D)  Q4

Question 14

Sometimes unions can raise wages above what productivity increases would permit. When this happens, we can be sure that

Accepted Answer

A)  the employment of union workers is increasing. 
B)  some union workers end up losing their jobs. 
C)  there is a redistribution of income from union workers to nonunion workers. 
D)  featherbedding will occur. 
A)  the employment of union workers is increasing. 
B)  some union workers end up losing their jobs. 
C)  there is a redistribution of income from union workers to nonunion workers. 
D)  featherbedding will occur.

Question 15

When unions exist in markets

Accepted Answer

A)  firms must have market power in their output markets. 
B)  there no longer is a perfectly competitive labor supply. 
C)  individual workers no longer make labor-leisure trade-off decisions. 
D)  employers have market power in labor markets. 
A)  firms must have market power in their output markets. 
B)  there no longer is a perfectly competitive labor supply. 
C)  individual workers no longer make labor-leisure trade-off decisions. 
D)  employers have market power in labor markets.

Question 16

The MFC curve

Accepted Answer

A)  lies below the labor supply curve, when the labor supply curve is upward sloping. 
B)  lies above the labor supply curve, when the labor supply curve is upward sloping. 
C)  is the labor supply curve. 
D)  is parallel to the labor supply curve, when the labor supply curve is downward sloping. 
A)  lies below the labor supply curve, when the labor supply curve is upward sloping. 
B)  lies above the labor supply curve, when the labor supply curve is upward sloping. 
C)  is the labor supply curve. 
D)  is parallel to the labor supply curve, when the labor supply curve is downward sloping.

Question 17

The ultimate bargaining tool for unions is

Accepted Answer

A)  the strike. 
B)  "labor's Magna Carta." 
C)  the Taft-Hartley Act. 
D)  the sympathy strike. 
A)  the strike. 
B)  "labor's Magna Carta." 
C)  the Taft-Hartley Act. 
D)  the sympathy strike.

Question 18

A union requirement that a truck driver has to be hired to work in a train station would be an example of

Accepted Answer

A)  work expansion. 
B)  featherbedding. 
C)  work requirements. 
D)  work stabilization. 
A)  work expansion. 
B)  featherbedding. 
C)  work requirements. 
D)  work stabilization.

Question 19

A tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union since the tariff would most likely

Accepted Answer

A)  lower the price of the output that workers purchase. 
B)  lower the domestic production of the good and increase wages. 
C)  increase the demand for domestic, union-made goods. 
D)  decrease the cost of the imported goods. 
A)  lower the price of the output that workers purchase. 
B)  lower the domestic production of the good and increase wages. 
C)  increase the demand for domestic, union-made goods. 
D)  decrease the cost of the imported goods.

Question 20

Which of the following is one of the reasons for declining union membership in the United States?

Accepted Answer

A)  Much of the unskilled, nonunionized work in the United States is done by immigrant workers who are undocumented. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  the repeal of the Taft-Hartley Act 
D)  Labor force participation by women has decreased. 
A)  Much of the unskilled, nonunionized work in the United States is done by immigrant workers who are undocumented. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  the repeal of the Taft-Hartley Act 
D)  Labor force participation by women has decreased.

Exam 29: Unions and Labor Market Monopoly Power

A jurisdictional dispute means that

The first labor unions in the United States were

The CIO was formed as a(n)

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

If a union negotiated a wage above the market equilibrium wage, we would find

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

A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is

Bargaining between the management of a company and the management of a union is

The impact of a strike is limited to the ability of the union to

In the United States the difference between union and non-union wages

The ultimate threat of a union is

Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.

-In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?

Sometimes unions can raise wages above what productivity increases would permit. When this happens, we can be sure that

When unions exist in markets

The MFC curve

The ultimate bargaining tool for unions is

A union requirement that a truck driver has to be hired to work in a train station would be an example of

A tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union since the tariff would most likely

Which of the following is one of the reasons for declining union membership in the United States?

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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