Exam 14: Wages, Union, and Labor

Exhibit 27-4 ​ Refer to Exhibit 27-4. If a labor union successfully organizes the labor market and sets the wage rate at W₄, the amount of unemployment in this market will be equal to

For a monopsony, when the firm purchases additional units of a factor, the marginal factor cost (MFC)rises.

Exhibit 27-10 ​ Refer to Exhibit 27-10. If the firm in the exhibit is a monopsony, then the difference between its marginal factor cost and the wage rate it pays is equal to

The right-to-work law specifies that

Exhibit 27-5 ​ Refer to Exhibit 27-5. In case (1), with a rise in the wage rate from W₁ to W₂, the wage bill will fall if

Under the traditional view of unions, unionization leads to __________ prices because unions __________.

To increase the wages of its members, a labor union might attempt to

What relationship exists between marginal factor cost (MFC)and wage for a monopsony firm?  Explain why this is so.

Labor union A faces a greater cutback in labor for a given wage increase than does labor union B. It follows that the

If union action leads to a rise in the relative price of factors that are substitutes for union labor,

In a monopsony model of the labor market, as more labor is hired, the marginal factor cost of labor

Which of the following will reduce the cutback in union labor for a given wage increase?

Describe the difference between the "traditional" view of labor unions and the "labor union as a collective voice" view of labor unions with respect to the impact that labor unions have on productivity and efficiency.