Question 1

Measured as a share of the labor force, union membership was at its highest level in the United States during the

Accepted Answer

A) 1930s 
B) 1950s 
C) 1970s 
D) 1990s 
A) 1930s 
B) 1950s 
C) 1970s 
D) 1990s B

Question 2

Which of the following is true?

Accepted Answer

A) The proportion of female workers who are union members is higher than the proportion of male workers. 
B) The proportion of government employees who are union members is higher than the proportion of private sector workers. 
C) The proportion of workers in southern states who are union members is higher than the proportion in northern states. 
D) The proportion of white workers who are union members is higher than the proportion of black workers. 
A) The proportion of female workers who are union members is higher than the proportion of male workers. 
B) The proportion of government employees who are union members is higher than the proportion of private sector workers. 
C) The proportion of workers in southern states who are union members is higher than the proportion in northern states. 
D) The proportion of white workers who are union members is higher than the proportion of black workers. B

Question 3

Between 1960 and 2010, the proportion of workers belonging to a union

Accepted Answer

A) decreased substantially in the private sector. 
B) was approximately constant in the private sector. 
C) decreased substantially in the government sector. 
D) was approximately constant in the government sector. 
A) decreased substantially in the private sector. 
B) was approximately constant in the private sector. 
C) decreased substantially in the government sector. 
D) was approximately constant in the government sector. A

Question 4

A union representing a group of workers will tend to be stronger when

Accepted Answer

A) there are no good substitutes for the labor services of the unionized workers. 
B) the domestic producers of the good produced by the unionized workers face intense competition from foreign suppliers of the good. 
C) the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D) the demand for the good produced by the unionized workers is highly elastic. 
A) there are no good substitutes for the labor services of the unionized workers. 
B) the domestic producers of the good produced by the unionized workers face intense competition from foreign suppliers of the good. 
C) the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D) the demand for the good produced by the unionized workers is highly elastic.

Question 5

What is the primary source of higher real wages?

Accepted Answer

A) labor unions 
B) the threat of a strike by a union 
C) increases in productivity 
D) increases in the supply of money 
A) labor unions 
B) the threat of a strike by a union 
C) increases in productivity 
D) increases in the supply of money

Question 6

When a union successfully raises the wages of its members, it will also

Accepted Answer

A) increase total productivity, which will generally increase in proportion to the wage rate. 
B) encourage employers to purchase more of the union labor. 
C) increase the share of income allocated to labor as opposed to capital. 
D) increase the employer's incentive to find substitutes for union labor. 
A) increase total productivity, which will generally increase in proportion to the wage rate. 
B) encourage employers to purchase more of the union labor. 
C) increase the share of income allocated to labor as opposed to capital. 
D) increase the employer's incentive to find substitutes for union labor.

Question 7

List some factors that might make the threat of a strike more effective.

Accepted Answer

These include low inventory le

Question 8

Which of the following statements is true for the U.S. economy?

Accepted Answer

A) Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. 
B) Inflation tends to accelerate when the proportion of the labor force that is unionized increases. 
C) Union workers currently receive wages that are 15 to 20 percent higher, on average, than similar nonunion workers. 
D) When we compare similar union and nonunion workers, we find virtually no difference in the wages they receive. 
A) Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. 
B) Inflation tends to accelerate when the proportion of the labor force that is unionized increases. 
C) Union workers currently receive wages that are 15 to 20 percent higher, on average, than similar nonunion workers. 
D) When we compare similar union and nonunion workers, we find virtually no difference in the wages they receive.

Question 9

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

Accepted Answer

A) Such competition reduces the ability of a union to achieve wage increases. 
B) Such competition does not affect the ability of a union to achieve wage increases. 
C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product. 
D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market. 
A) Such competition reduces the ability of a union to achieve wage increases. 
B) Such competition does not affect the ability of a union to achieve wage increases. 
C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product. 
D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.

Question 10

Since 1970, union membership, as a percent of the labor force, has

Accepted Answer

A) remained virtually unchanged. 
B) increased slightly. 
C) declined steadily. 
D) increased significantly. 
A) remained virtually unchanged. 
B) increased slightly. 
C) declined steadily. 
D) increased significantly.

Question 11

Since the demand for a narrowly defined product class (Fords, for example) is more elastic than the demand for a broadly defined product class (all automobiles), a union will be better able to raise the wages of its members without causing a reduction in their employment when

Accepted Answer

A) it can organize an entire industry, rather than just selective firms within the industry. 
B) it concentrates its organizational efforts on a single firm, ignoring the rest of the industry. 
C) the demand for the product is highly elastic. 
D) there are many good substitutes for union labor. 
A) it can organize an entire industry, rather than just selective firms within the industry. 
B) it concentrates its organizational efforts on a single firm, ignoring the rest of the industry. 
C) the demand for the product is highly elastic. 
D) there are many good substitutes for union labor.

Question 12

The percent of workers belonging to a union in the United States

Accepted Answer

A) has been continuously declining since the 1950s. 
B) has been continuously increasing since the 1950s. 
C) has remained fairly constant since the 1950s. 
D) rose sharply from 1950 to 1970 but has declined since. 
A) has been continuously declining since the 1950s. 
B) has been continuously increasing since the 1950s. 
C) has remained fairly constant since the 1950s. 
D) rose sharply from 1950 to 1970 but has declined since.

Question 13

Which of the following will tend to lower the ability of a union to increase the wages of its members?

Accepted Answer

A) strong competition from nonunion labor 
B) threat of a strike 
C) increased demand for union labor 
D) all of the above 
A) strong competition from nonunion labor 
B) threat of a strike 
C) increased demand for union labor 
D) all of the above

Question 14

What percentage of the non-farm labor force in the United States belonged to a labor union in 2010?

Accepted Answer

A) less than 10 percent 
B) approximately 12 percent 
C) approximately 28 percent 
D) more than 40 percent 
A) less than 10 percent 
B) approximately 12 percent 
C) approximately 28 percent 
D) more than 40 percent

Question 15

The share of the labor force that was unionized fell from more than 30 percent in the 1950s to less than 15 percent in the 2000s. During this time period, the share of national income allocated to labor (in contrast to capital)

Accepted Answer

A) decreased by approximately 10 percent. 
B) decreased by more than 15 percent. 
C) increased by 10 percent. 
D) was virtually unchanged. 
A) decreased by approximately 10 percent. 
B) decreased by more than 15 percent. 
C) increased by 10 percent. 
D) was virtually unchanged.

Question 16

Which of the following most accurately indicates changes in the size of the union sector in the United States?

Accepted Answer

A) As a share of the labor force, union membership grew substantially during 1935 through 1955 but has declined substantially since the mid-1950s. 
B) As a share of the labor force, union membership declined substantially during 1935 through 1955 but has grown substantially since the mid-1950s. 
C) As a share of the labor force, union membership has steadily grown from less than 10 percent in 1935 to more than 40 percent today. 
D) Union membership has been approximately 20 percent of the labor force during the last five decades. 
A) As a share of the labor force, union membership grew substantially during 1935 through 1955 but has declined substantially since the mid-1950s. 
B) As a share of the labor force, union membership declined substantially during 1935 through 1955 but has grown substantially since the mid-1950s. 
C) As a share of the labor force, union membership has steadily grown from less than 10 percent in 1935 to more than 40 percent today. 
D) Union membership has been approximately 20 percent of the labor force during the last five decades.

Question 17

The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when

Accepted Answer

A) there are no close substitutes for the unionized workers. 
B) the domestic producers of the good produced by the unionized workers face weak competition from foreign suppliers of the good. 
C) the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D) the demand for the product produced by the unionized workers is highly inelastic. 
A) there are no close substitutes for the unionized workers. 
B) the domestic producers of the good produced by the unionized workers face weak competition from foreign suppliers of the good. 
C) the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D) the demand for the product produced by the unionized workers is highly inelastic.

Question 18

What common goals, if any, do labor and management share?

Accepted Answer

Both should be vitally interested in the

Question 19

As the football season approaches, the threat of a player strike would give

Accepted Answer

A) both players and management an incentive to bargain seriously. 
B) only the players an incentive to bargain seriously. 
C) only management an incentive to bargain seriously. 
D) neither party much incentive to bargain seriously. 
A) both players and management an incentive to bargain seriously. 
B) only the players an incentive to bargain seriously. 
C) only management an incentive to bargain seriously. 
D) neither party much incentive to bargain seriously.

Question 20

In which of the following occupations is union membership the highest?

Accepted Answer

A) sales 
B) transportation 
C) construction 
D) government 
A) sales 
B) transportation 
C) construction 
D) government

Exam 25: Appendix: Do Labor Unions Increase the Wages of Workers

Measured as a share of the labor force, union membership was at its highest level in the United States during the

Which of the following is true?

Between 1960 and 2010, the proportion of workers belonging to a union

A union representing a group of workers will tend to be stronger when

What is the primary source of higher real wages?

When a union successfully raises the wages of its members, it will also

List some factors that might make the threat of a strike more effective.

Which of the following statements is true for the U.S. economy?

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

Since 1970, union membership, as a percent of the labor force, has

Since the demand for a narrowly defined product class (Fords, for example) is more elastic than the demand for a broadly defined product class (all automobiles), a union will be better able to raise the wages of its members without causing a reduction in their employment when

The percent of workers belonging to a union in the United States

Which of the following will tend to lower the ability of a union to increase the wages of its members?

What percentage of the non-farm labor force in the United States belonged to a labor union in 2010?

The share of the labor force that was unionized fell from more than 30 percent in the 1950s to less than 15 percent in the 2000s. During this time period, the share of national income allocated to labor (in contrast to capital)

Which of the following most accurately indicates changes in the size of the union sector in the United States?

The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when

What common goals, if any, do labor and management share?

As the football season approaches, the threat of a player strike would give

In which of the following occupations is union membership the highest?

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Difficult Environmental Cases and the Role of Government

Filters