Question 1

If attitudes change and unions are perceived as dangerous to American companies' ability to compete in the world market, then

Accepted Answer

A)  the demand curve for union services will shift to the left. 
B)  the demand curve for union services will shift to the right. 
C)  we will move to the left along the demand curve for union services. 
D)  we will move to the right along the demand curve for union services. 
A)  the demand curve for union services will shift to the left. 
B)  the demand curve for union services will shift to the right. 
C)  we will move to the left along the demand curve for union services. 
D)  we will move to the right along the demand curve for union services. A

Question 2

Which of the following best describes the economic nature of a union?

Accepted Answer

A)  a monopoly 
B)  a monopsonist 
C)  a producer of public goods 
D)  an agency assuring workers get wage reflecting their supply price of labor. 
A)  a monopoly 
B)  a monopsonist 
C)  a producer of public goods 
D)  an agency assuring workers get wage reflecting their supply price of labor. A

Question 3

The potential gains to a union in terms of wages and employment will be greatest if the firm's demand for labor is

Accepted Answer

A)  elastic. 
B)  inelastic. 
C)  of unit elasticity. 
D)  horizontal. 
A)  elastic. 
B)  inelastic. 
C)  of unit elasticity. 
D)  horizontal. B

Question 4

In the imperfect information model, employers who provide better information about their profitability to their employees

Accepted Answer

A)  should see a decrease in frequency of strikes, but an increase in duration. 
B)  should see an increase in frequency of strikes, but a decrease in duration. 
C)  should see an increase in both frequency and duration of strikes. 
D)  should see a decrease in both frequency and duration of strikes. 
A)  should see a decrease in frequency of strikes, but an increase in duration. 
B)  should see an increase in frequency of strikes, but a decrease in duration. 
C)  should see an increase in both frequency and duration of strikes. 
D)  should see a decrease in both frequency and duration of strikes.

Question 5

Threat effects are

Accepted Answer

A)  increases in union wages from threats to strike. 
B)  increases in non-union wages from threats to unionize. 
C)  decreases in union wages from management threats to use replacement workers during a strike. 
D)  decreases in non-union wages from the threat of replacement by unemployed union members. 
A)  increases in union wages from threats to strike. 
B)  increases in non-union wages from threats to unionize. 
C)  decreases in union wages from management threats to use replacement workers during a strike. 
D)  decreases in non-union wages from the threat of replacement by unemployed union members.

Question 6

Estimating the effect of unions on wages is difficult because

Accepted Answer

A)  data on wages in union and non-union jobs are scarce. 
B)  relative wage effects are often indeterminate. 
C)  there is no way to estimate what wages would be if unions did not exist. 
D)  unions have no effect on the non-union segment of the labor market. 
A)  data on wages in union and non-union jobs are scarce. 
B)  relative wage effects are often indeterminate. 
C)  there is no way to estimate what wages would be if unions did not exist. 
D)  unions have no effect on the non-union segment of the labor market.

Question 7

A union raises the wage of firm X from $10 to $15 an hour. In which of these cases is there a direct reduction in the social welfare?

Accepted Answer

A)  Worker A retains their job at company X, such that company X's profits associated with worker A go down $5 an hour. 
B)  Worker B, working for firm Y gets a lower wage due to the spill-over effect. 
C)  Worker C, who is getting $7 an hour working for firm Z would have otherwise have gotten a job with firm X at a wage of $8. 
D)  Worker D, who is working for firm M, gets a higher wage due to the threat effect. 
A)  Worker A retains their job at company X, such that company X's profits associated with worker A go down $5 an hour. 
B)  Worker B, working for firm Y gets a lower wage due to the spill-over effect. 
C)  Worker C, who is getting $7 an hour working for firm Z would have otherwise have gotten a job with firm X at a wage of $8. 
D)  Worker D, who is working for firm M, gets a higher wage due to the threat effect.

Question 8

If both parties become more risk averse, then the contract zone will

Accepted Answer

A)  increase in size. 
B)  decrease in size. 
C)  not change in size. 
D)  move to the right along the horizontal axis. 
A)  increase in size. 
B)  decrease in size. 
C)  not change in size. 
D)  move to the right along the horizontal axis.

Question 9

The relative union wage advantage is generally

Accepted Answer

A)  about 50% in the United States. 
B)  smaller in the United States than in Europe. 
C)  larger in the public sector than in the private sector. 
D)  larger during recessions. 
A)  about 50% in the United States. 
B)  smaller in the United States than in Europe. 
C)  larger in the public sector than in the private sector. 
D)  larger during recessions.

Question 10

Which of the following statements is generally true about unions?

Accepted Answer

A)  Unions raise wages in the range from 30 to 40%. 
B)  Public sector unions raise wages more than private sector unions. 
C)  The union wage advantage is higher in Europe than it is in the United States. 
D)  Unions reduce the dispersion of earnings among workers. 
A)  Unions raise wages in the range from 30 to 40%. 
B)  Public sector unions raise wages more than private sector unions. 
C)  The union wage advantage is higher in Europe than it is in the United States. 
D)  Unions reduce the dispersion of earnings among workers.

Question 11

A vertical contract curve implies that

Accepted Answer

A)  both firm and workers are receiving economic rents. 
B)  union wage increases will cause large losses in employment. 
C)  the firm's output will increase when wages rise. 
D)  the firm operates in a perfectly competitive product market. 
A)  both firm and workers are receiving economic rents. 
B)  union wage increases will cause large losses in employment. 
C)  the firm's output will increase when wages rise. 
D)  the firm operates in a perfectly competitive product market.

Question 12

The ________ Act established the National Labor Relations Board and required employers to bargain with lie-union that represents the majority of their employees.

Accepted Answer

A)  Norris-LaGuardia 
B)  Wagner 
C)  Taft-Hartley 
D)  Landrum-Griffin 
A)  Norris-LaGuardia 
B)  Wagner 
C)  Taft-Hartley 
D)  Landrum-Griffin

Question 13

Non-pecuniary factors in union jobs are usually

Accepted Answer

A)  roughly equal to those in non-union jobs. 
B)  preferable in union jobs, due to negotiations. 
C)  preferable in union jobs, due to threats to strike. 
D)  preferable in non-union jobs. 
A)  roughly equal to those in non-union jobs. 
B)  preferable in union jobs, due to negotiations. 
C)  preferable in union jobs, due to threats to strike. 
D)  preferable in non-union jobs.

Question 14

Many unions have favored import quotas and tariffs because

Accepted Answer

A)  they want to shift demand towards the goods they produce. 
B)  they are trying increase the welfare of all Americans. 
C)  they want their employers to substitute labor for capital and other inputs. 
D)  All of the above. 
A)  they want to shift demand towards the goods they produce. 
B)  they are trying increase the welfare of all Americans. 
C)  they want their employers to substitute labor for capital and other inputs. 
D)  All of the above.

Question 15

Unions usually have which of the following effects?

Accepted Answer

A)  increase the profits of the firms unionized by motivating workers to work harder 
B)  increase the growth rate of employment in unionized firms as more workers are attracted to unionized jobs 
C)  increase the fraction of total compensation paid in the form of employee benefits 
D)  decrease the total compensation of unionized workers 
A)  increase the profits of the firms unionized by motivating workers to work harder 
B)  increase the growth rate of employment in unionized firms as more workers are attracted to unionized jobs 
C)  increase the fraction of total compensation paid in the form of employee benefits 
D)  decrease the total compensation of unionized workers

Question 16

Unions tend to

Accepted Answer

A)  increase wages for white-collar and blue-collar members by roughly the same amount relative to non-union workers. 
B)  increase relative wages more for blue-collar workers. 
C)  increase relative wages more for white-collar workers. 
D)  encourage high levels of education and training for their members. 
A)  increase wages for white-collar and blue-collar members by roughly the same amount relative to non-union workers. 
B)  increase relative wages more for blue-collar workers. 
C)  increase relative wages more for white-collar workers. 
D)  encourage high levels of education and training for their members.

Question 17

Unionization rates in the United States are highest

Accepted Answer

A)  among white workers. 
B)  among young workers. 
C)  in the government sector. 
D)  in the manufacturing sector. 
A)  among white workers. 
B)  among young workers. 
C)  in the government sector. 
D)  in the manufacturing sector.

Question 18

Suppose a study found that union wages were 10% higher than nonunion wages. Unions will have actually raised wages by more than 10% when

Accepted Answer

A)  union workers who lost their jobs found work in the nonunion sector. 
B)  consumers shifted their demand to the lower priced nonunion goods. 
C)  nonunion employers raised their wages in response to the threat of being unionized. 
D)  union workers are more productive workers than nonunion workers. 
A)  union workers who lost their jobs found work in the nonunion sector. 
B)  consumers shifted their demand to the lower priced nonunion goods. 
C)  nonunion employers raised their wages in response to the threat of being unionized. 
D)  union workers are more productive workers than nonunion workers.

Question 19

Suppose that a union increases wages by 10% but that the impact of this is exactly offset by the union also increasing labor productivity by 10%. Which of the following will occur if the firm can freely set employment levels?

Accepted Answer

A)  Employment will fall by 10%. 
B)  The cost of output will go up 10%. 
C)  Demand for output will go up by more than 10% if the price elasticity of demand is greater than one. 
D)  The firm will substitute labor for capital. 
A)  Employment will fall by 10%. 
B)  The cost of output will go up 10%. 
C)  Demand for output will go up by more than 10% if the price elasticity of demand is greater than one. 
D)  The firm will substitute labor for capital.

Question 20

Increases in the minimum wage can help unions by

Accepted Answer

A)  increasing the welfare of non-union workers. 
B)  increasing the demand for labor. 
C)  increasing costs faced by employers. 
D)  increasing the cost of substituting non-union labor for union labor. 
A)  increasing the welfare of non-union workers. 
B)  increasing the demand for labor. 
C)  increasing costs faced by employers. 
D)  increasing the cost of substituting non-union labor for union labor.

If attitudes change and unions are perceived as dangerous to American companies' ability to compete in the world market, then

Which of the following best describes the economic nature of a union?

The potential gains to a union in terms of wages and employment will be greatest if the firm's demand for labor is

In the imperfect information model, employers who provide better information about their profitability to their employees

Threat effects are

Estimating the effect of unions on wages is difficult because

A union raises the wage of firm X from $10 to $15 an hour. In which of these cases is there a direct reduction in the social welfare?

If both parties become more risk averse, then the contract zone will

The relative union wage advantage is generally

Which of the following statements is generally true about unions?

A vertical contract curve implies that

The ________ Act established the National Labor Relations Board and required employers to bargain with lie-union that represents the majority of their employees.

Non-pecuniary factors in union jobs are usually

Many unions have favored import quotas and tariffs because

Unions usually have which of the following effects?

Unions tend to

Unionization rates in the United States are highest

Suppose a study found that union wages were 10% higher than nonunion wages. Unions will have actually raised wages by more than 10% when

Suppose that a union increases wages by 10% but that the impact of this is exactly offset by the union also increasing labor productivity by 10%. Which of the following will occur if the firm can freely set employment levels?

Increases in the minimum wage can help unions by

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

Exam 13: Unions and the Labor Market

If attitudes change and unions are perceived as dangerous to American companies' ability to compete in the world market, then

Which of the following best describes the economic nature of a union?

The potential gains to a union in terms of wages and employment will be greatest if the firm's demand for labor is

In the imperfect information model, employers who provide better information about their profitability to their employees

Threat effects are

Estimating the effect of unions on wages is difficult because

A union raises the wage of firm X from $10 to $15 an hour. In which of these cases is there a direct reduction in the social welfare?

If both parties become more risk averse, then the contract zone will

The relative union wage advantage is generally

Which of the following statements is generally true about unions?

A vertical contract curve implies that

The ________ Act established the National Labor Relations Board and required employers to bargain with lie-union that represents the majority of their employees.

Non-pecuniary factors in union jobs are usually

Many unions have favored import quotas and tariffs because

Unions usually have which of the following effects?

Unions tend to

Unionization rates in the United States are highest

Suppose a study found that union wages were 10% higher than nonunion wages. Unions will have actually raised wages by more than 10% when

Suppose that a union increases wages by 10% but that the impact of this is exactly offset by the union also increasing labor productivity by 10%. Which of the following will occur if the firm can freely set employment levels?

Increases in the minimum wage can help unions by

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters