Question 1

Which of these probably has played the LEAST important role in the drop in unionization rates in the United States over the past 20 years.

Accepted Answer

A)  The increase in the share of employment by female workers. 
B)  The increase in the share of employment in sunbelt states. 
C)  Resistance to unionization by employers. 
D)  Increased competitive pressures within product markets. 
A)  The increase in the share of employment by female workers. 
B)  The increase in the share of employment in sunbelt states. 
C)  Resistance to unionization by employers. 
D)  Increased competitive pressures within product markets.

Question 2

Suppose all textile workers in the United States formed a union. Which of the following will make it more likely the union will ask for a larger wage increase (assuming the union cares about both higher wages and retaining jobs)?

Accepted Answer

A)  Labor costs represent a large share of textile production costs. 
B)  Textile firms will not invest in capital substituting for labor in producing textiles because textiles is a declining industry. 
C)  Labor is a good substitute for capital. 
D)  Textile buyers consider U.S. textiles a good substitute for non-U.S. made textiles. 
A)  Labor costs represent a large share of textile production costs. 
B)  Textile firms will not invest in capital substituting for labor in producing textiles because textiles is a declining industry. 
C)  Labor is a good substitute for capital. 
D)  Textile buyers consider U.S. textiles a good substitute for non-U.S. made textiles.

Question 3

Union membership in the United States is currently ________ other industrialized countries.

Accepted Answer

A)  lower than in 
B)  higher than in 
C)  similar to that in 
D)  around the median of 
A)  lower than in 
B)  higher than in 
C)  similar to that in 
D)  around the median of

Question 4

Wait unemployment

Accepted Answer

A)  occurs when union workers strike for wage increases. 
B)  will increase the size of the spillover effect. 
C)  occurs when workers choose unemployment over non-union jobs. 
D)  will cause the supply of labor to shift further to the right in the non-union sector. 
A)  occurs when union workers strike for wage increases. 
B)  will increase the size of the spillover effect. 
C)  occurs when workers choose unemployment over non-union jobs. 
D)  will cause the supply of labor to shift further to the right in the non-union sector.

Question 5

If one sector of the economy becomes unionized and there is a spillover effect then

Accepted Answer

A)  wages will increase in both sectors. 
B)  wages will increase in the unionized sector, but may either increase or decrease in the non-union sector. 
C)  wages will stay unchanged in both sectors. 
D)  wages will increase in the unionized sector, but decrease in the non-unionized sector. 
A)  wages will increase in both sectors. 
B)  wages will increase in the unionized sector, but may either increase or decrease in the non-union sector. 
C)  wages will stay unchanged in both sectors. 
D)  wages will increase in the unionized sector, but decrease in the non-unionized sector.

Question 6

Large union wage increases in declining sectors can be explained by

Accepted Answer

A)  industries' inability to substitute capital for labor while product demand is falling. 
B)  unions' decision to make wage gains more important than employment guarantees. 
C)  industries' unwillingness to negotiate with unions. 
D)  industries' ability to sell used capital if necessary. 
A)  industries' inability to substitute capital for labor while product demand is falling. 
B)  unions' decision to make wage gains more important than employment guarantees. 
C)  industries' unwillingness to negotiate with unions. 
D)  industries' ability to sell used capital if necessary.

Question 7

The efficient contract model implies that

Accepted Answer

A)  the union and the employer are both better off than they would be in a monopoly union model. 
B)  the union maximizes a utility function, subject to the firm's labor demand function. 
C)  the union negotiates only on wage levels, not on employment levels. 
D)  firms have more negotiating power than unions. 
A)  the union and the employer are both better off than they would be in a monopoly union model. 
B)  the union maximizes a utility function, subject to the firm's labor demand function. 
C)  the union negotiates only on wage levels, not on employment levels. 
D)  firms have more negotiating power than unions.

Question 8

The union resistance curve would shift inward due to

Accepted Answer

A)  the hardening of workers' attitudes after a strike begins. 
B)  an outward shift in the employer resistance curve. 
C)  a rise in the unemployment rate. 
D)  the ability of members to collect unemployment insurance benefits during a strike. 
A)  the hardening of workers' attitudes after a strike begins. 
B)  an outward shift in the employer resistance curve. 
C)  a rise in the unemployment rate. 
D)  the ability of members to collect unemployment insurance benefits during a strike.

Question 9

Any point on the contract curve will

Accepted Answer

A)  make the union better off than they would be in monopoly union negotiations. 
B)  make the firm better off than they would be in monopoly union negotiations. 
C)  make both the union and the firm at least as well off as they would be in monopoly union negotiations. 
D)  make both parties worse off than they would be in monopoly union negotiations. 
A)  make the union better off than they would be in monopoly union negotiations. 
B)  make the firm better off than they would be in monopoly union negotiations. 
C)  make both the union and the firm at least as well off as they would be in monopoly union negotiations. 
D)  make both parties worse off than they would be in monopoly union negotiations.

Question 10

Empirical studies have concluded that unionization ________ productivity and ________ profit rates.

Accepted Answer

A)  has no consistent effect on; has no consistent effect on 
B)  has no consistent effect on; reduces 
C)  reduces; has no consistent effect on 
D)  reduces; reduces 
A)  has no consistent effect on; has no consistent effect on 
B)  has no consistent effect on; reduces 
C)  reduces; has no consistent effect on 
D)  reduces; reduces

Question 11

Suppose a study finds than union wages are 10% higher than nonunion wages. This will likely understate the true advantage of working in the union job when

Accepted Answer

A)  the nonunion job has better skilled workers. 
B)  the union job has poorer working conditions. 
C)  workers losing union jobs seek out non-union jobs. 
D)  unemployment is high. 
A)  the nonunion job has better skilled workers. 
B)  the union job has poorer working conditions. 
C)  workers losing union jobs seek out non-union jobs. 
D)  unemployment is high.

Question 12

Section 14B of the Taft-Hartley Act

Accepted Answer

A)  permitted individual states to pass "right-to-work" laws. 
B)  prohibited "yellow dog" contracts. 
C)  required compulsory arbitration of contracts. 
D)  contained provisions to increase democracy within unions. 
A)  permitted individual states to pass "right-to-work" laws. 
B)  prohibited "yellow dog" contracts. 
C)  required compulsory arbitration of contracts. 
D)  contained provisions to increase democracy within unions.

Question 13

Suppose the firm's demand for labor is Lᴰ = 100 - W. The supply of labor is perfectly elastic at a wage of $20. If a monopoly union's goal is to maximize total rents (= [WU - $20] × L), what wage will it seek?

Accepted Answer

A)  $20 
B)  $40 
C)  $60 
D)  $80 
A)  $20 
B)  $40 
C)  $60 
D)  $80

Question 14

The "price" of being in a union includes

Accepted Answer

A)  membership dues. 
B)  the amount by which wages increase due to union membership. 
C)  the time spent on union activities. 
D)  all costs, including money and time. 
A)  membership dues. 
B)  the amount by which wages increase due to union membership. 
C)  the time spent on union activities. 
D)  all costs, including money and time.

Question 15

If both parties are risk neutral, then

Accepted Answer

A)  there will be a larger number of possible voluntary agreements that the parties may reach. 
B)  the parties each prefer a certain outcome to an uncertain outcome, if the expected gains are equal. 
C)  the contract zone will reach its minimal size. 
D)  their utility functions will be concave. 
A)  there will be a larger number of possible voluntary agreements that the parties may reach. 
B)  the parties each prefer a certain outcome to an uncertain outcome, if the expected gains are equal. 
C)  the contract zone will reach its minimal size. 
D)  their utility functions will be concave.

Which of these probably has played the LEAST important role in the drop in unionization rates in the United States over the past 20 years.

Suppose all textile workers in the United States formed a union. Which of the following will make it more likely the union will ask for a larger wage increase (assuming the union cares about both higher wages and retaining jobs)?

Union membership in the United States is currently ________ other industrialized countries.

Wait unemployment

If one sector of the economy becomes unionized and there is a spillover effect then

Large union wage increases in declining sectors can be explained by

The efficient contract model implies that

The union resistance curve would shift inward due to

Any point on the contract curve will

Empirical studies have concluded that unionization productivity and profit rates.

Suppose a study finds than union wages are 10% higher than nonunion wages. This will likely understate the true advantage of working in the union job when

Section 14B of the Taft-Hartley Act

Suppose the firm's demand for labor is Lᴰ = 100 - W. The supply of labor is perfectly elastic at a wage of $20. If a monopoly union's goal is to maximize total rents (= [W_U - $20] × L), what wage will it seek?

The "price" of being in a union includes

If both parties are risk neutral, then

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

Which of these probably has played the LEAST important role in the drop in unionization rates in the United States over the past 20 years.

Suppose all textile workers in the United States formed a union. Which of the following will make it more likely the union will ask for a larger wage increase (assuming the union cares about both higher wages and retaining jobs)?

Union membership in the United States is currently ________ other industrialized countries.

Wait unemployment

If one sector of the economy becomes unionized and there is a spillover effect then

Large union wage increases in declining sectors can be explained by

The efficient contract model implies that

The union resistance curve would shift inward due to

Any point on the contract curve will

Empirical studies have concluded that unionization ________ productivity and ________ profit rates.

Suppose a study finds than union wages are 10% higher than nonunion wages. This will likely understate the true advantage of working in the union job when

Section 14B of the Taft-Hartley Act

Suppose the firm's demand for labor is Lᴰ = 100 - W. The supply of labor is perfectly elastic at a wage of $20. If a monopoly union's goal is to maximize total rents (= [WU - $20] × L), what wage will it seek?

The "price" of being in a union includes

If both parties are risk neutral, then

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

Empirical studies have concluded that unionization productivity and profit rates.

Suppose the firm's demand for labor is Lᴰ = 100 - W. The supply of labor is perfectly elastic at a wage of $20. If a monopoly union's goal is to maximize total rents (= [W_U - $20] × L), what wage will it seek?