Question 1

A closed shop is a

Accepted Answer

A)  strike by a union in sympathy with another union's strike or cause. 
B)  dispute involving two or more unions over which should have control of a particular jurisdiction. 
C)  business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired. 
D)  legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins. 
A)  strike by a union in sympathy with another union's strike or cause. 
B)  dispute involving two or more unions over which should have control of a particular jurisdiction. 
C)  business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired. 
D)  legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.

Question 2

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

Accepted Answer

A)  there will be downward pressure on the wage rate until equilibrium is established. 
B)  right-to-work laws become effective. 
C)  there is a shortage of jobs. 
D)  there is excess demand for labor. 
A)  there will be downward pressure on the wage rate until equilibrium is established. 
B)  right-to-work laws become effective. 
C)  there is a shortage of jobs. 
D)  there is excess demand for labor.

Question 3

Supposed you are hired to be a checker at a local grocery store. After ninety days of probation you become a member of the union. As a result you feel more secure about your job and work harder to be part of the team. This is a benefit of union membership that

Accepted Answer

A)  increases demand for union-made goods. 
B)  decreases the demand for nonunion-made goods. 
C)  increases worker productivity of union members. 
D)  increases union dues. 
A)  increases demand for union-made goods. 
B)  decreases the demand for nonunion-made goods. 
C)  increases worker productivity of union members. 
D)  increases union dues.

Question 4

Negotiations between the management of a company and the management of a union for the purpose of setting a mutually agreeable contract on wages, fringe benefits and working conditions for all employees in a union is know as

Accepted Answer

A)  a closed shop. 
B)  a union shop. 
C)  collective bargaining. 
D)  an industrial union. 
A)  a closed shop. 
B)  a union shop. 
C)  collective bargaining. 
D)  an industrial union.

Question 5

The Service Employees International Union 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 6

If a firm is a union shop, then

Accepted Answer

A)  a worker may elect to either join or not join the union. 
B)  only workers who have been union members for two years may be employed. 
C)  only union members may be employed by the firm. 
D)  a non-union worker may be hired but must join the union within a certain time period. 
A)  a worker may elect to either join or not join the union. 
B)  only workers who have been union members for two years may be employed. 
C)  only union members may be employed by the firm. 
D)  a non-union worker may be hired but must join the union within a certain time period.

Question 7

Which of the following is NOT correct regarding the status of U.S. labor unions?

Accepted Answer

A)  Today fewer than one in eight workers is a union member. 
B)  A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. 
C)  Greater domestic and global competition has had a part in bringing about a decline in unions. 
D)  Global trade has increased the number of union members in the United States. 
A)  Today fewer than one in eight workers is a union member. 
B)  A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. 
C)  Greater domestic and global competition has had a part in bringing about a decline in unions. 
D)  Global trade has increased the number of union members in the United States.

Question 8

The Taft-Hartley Act

Accepted Answer

A)  permits states to outlaw unions. 
B)  permits states to pass right-to-work laws. 
C)  encourages unions to engage in sympathy strikes. 
D)  encourages unions to engage in secondary boycotts. 
A)  permits states to outlaw unions. 
B)  permits states to pass right-to-work laws. 
C)  encourages unions to engage in sympathy strikes. 
D)  encourages unions to engage in secondary boycotts.

Question 9

A company town in the lumber or mining industry is an example of a

Accepted Answer

A)  monopoly. 
B)  bilateral monopoly. 
C)  buyer's monopoly. 
D)  monopsony. 
A)  monopoly. 
B)  bilateral monopoly. 
C)  buyer's monopoly. 
D)  monopsony.

Question 10

The welders' union at Ajax is on strike. The maintenance union has decided to walk out in support of the welders' union. This is known as

Accepted Answer

A)  a closed shop. 
B)  a union shop. 
C)  a sympathy strike. 
D)  a secondary boycott. 
A)  a closed shop. 
B)  a union shop. 
C)  a sympathy strike. 
D)  a secondary boycott.

Question 11

A union can achieve higher wages without accepting lower levels of employment of members by

Accepted Answer

A)  promoting right-to-work laws. 
B)  increasing the demand for substitute products made by non-union labor. 
C)  increasing conflicts with management. 
D)  beginning a campaign against buying foreign imports. 
A)  promoting right-to-work laws. 
B)  increasing the demand for substitute products made by non-union labor. 
C)  increasing conflicts with management. 
D)  beginning a campaign against buying foreign imports.

Question 12

Which statement concerning powers granted the President of the United States by the Taft-Hartley Act is TRUE?

Accepted Answer

A)  The President can obtain an injunction that will stop a strike, if the strike involves government workers only. 
B)  The President can require management to negotiate with a union and if the firm's management refuses, the President can appoint an arbitrator to resolve the conflict. 
C)  The President can obtain an injunction that will stop a strike for an eighty-day "cooling off" period if the strike is expected to imperil national safety or health. 
D)  The President can obtain an injunction that will stop a strike indefinitely. 
A)  The President can obtain an injunction that will stop a strike, if the strike involves government workers only. 
B)  The President can require management to negotiate with a union and if the firm's management refuses, the President can appoint an arbitrator to resolve the conflict. 
C)  The President can obtain an injunction that will stop a strike for an eighty-day "cooling off" period if the strike is expected to imperil national safety or health. 
D)  The President can obtain an injunction that will stop a strike indefinitely.

Question 13

A monopsony has an upward sloping supply curve because

Accepted Answer

A)  diminishing marginal product to scale does not exist in a monopsony. 
B)  each additional unit of labor costs less. 
C)  when more units of labor are hired, all laborers must receive the higher wage. 
D)  when more units of labor are hired, only the new workers receive the higher wage. 
A)  diminishing marginal product to scale does not exist in a monopsony. 
B)  each additional unit of labor costs less. 
C)  when more units of labor are hired, all laborers must receive the higher wage. 
D)  when more units of labor are hired, only the new workers receive the higher wage.

Question 14

Which of these nations has the highest rate of union membership (as a share of total employment)?

Accepted Answer

A)  India 
B)  the United States 
C)  Japan 
D)  Sweden 
A)  India 
B)  the United States 
C)  Japan 
D)  Sweden

Question 15

-Refer to the above figure. If the union wants to maximize the total income of its members who work, it will set wages at

Accepted Answer

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

Question 16

A legal arrangement whereby a firm can hire only union labor is called

Accepted Answer

A)  a union shop. 
B)  a closed shop. 
C)  a sweat shop. 
D)  an open shop. 
A)  a union shop. 
B)  a closed shop. 
C)  a sweat shop. 
D)  an open shop.

Question 17

A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?

Accepted Answer

The union might try to employ all member

Question 18

Which of the following is NOT one of the reasons for declining union membership in the United States?

Accepted Answer

A)  The economy has shifted away from manufacturing. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  Some industries have been deregulated. 
D)  Labor force participation by women has increased. 
A)  The economy has shifted away from manufacturing. 
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions. 
C)  Some industries have been deregulated. 
D)  Labor force participation by women has increased.

Question 19

Which of the following is LEAST likely to be a reason for the decline in U.S. union membership?

Accepted Answer

A)  declines in manufacturing employment 
B)  increases in the work force of the public sector 
C)  deregulation of transportation industries 
D)  increasingly more immigrant workers to fill unskilled job positions 
A)  declines in manufacturing employment 
B)  increases in the work force of the public sector 
C)  deregulation of transportation industries 
D)  increasingly more immigrant workers to fill unskilled job positions

Question 20

Bilateral monopoly exists when

Accepted Answer

A)  there is either a monopoly or a monopsony in the market. 
B)  there are two competing labor unions in a labor market. 
C)  there is a monopoly and a monopsony in a market. 
D)  a firm is both a monopolist in its output market and a monopsonist in the input market. 
A)  there is either a monopoly or a monopsony in the market. 
B)  there are two competing labor unions in a labor market. 
C)  there is a monopoly and a monopsony in a market. 
D)  a firm is both a monopolist in its output market and a monopsonist in the input market.

Exam 29: Unions and Labor Market Monopoly Power

A closed shop is a

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

Supposed you are hired to be a checker at a local grocery store. After ninety days of probation you become a member of the union. As a result you feel more secure about your job and work harder to be part of the team. This is a benefit of union membership that

Negotiations between the management of a company and the management of a union for the purpose of setting a mutually agreeable contract on wages, fringe benefits and working conditions for all employees in a union is know as

The Service Employees International Union is an example of a(n)

If a firm is a union shop, then

Which of the following is NOT correct regarding the status of U.S. labor unions?

The Taft-Hartley Act

A company town in the lumber or mining industry is an example of a

The welders' union at Ajax is on strike. The maintenance union has decided to walk out in support of the welders' union. This is known as

A union can achieve higher wages without accepting lower levels of employment of members by

Which statement concerning powers granted the President of the United States by the Taft-Hartley Act is TRUE?

A monopsony has an upward sloping supply curve because

Which of these nations has the highest rate of union membership (as a share of total employment)?

-Refer to the above figure. If the union wants to maximize the total income of its members who work, it will set wages at

A legal arrangement whereby a firm can hire only union labor is called

A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?

Which of the following is NOT one of the reasons for declining union membership in the United States?

Which of the following is LEAST likely to be a reason for the decline in U.S. union membership?

Bilateral monopoly exists when

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

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Classical and Keynesian Macro Analyses

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Stabilization in an Integrated World Economy

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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

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Environmental Economics

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