Question 1

A worker living in a state with a right-to-work law

Accepted Answer

A) cannot be employed at a union firm until he has joined the union. 
B) cannot be required to join a union as a condition of employment. 
C) must agree when he is hired never to join a union. 
D) is guaranteed a job in government if he cannot find a private sector job. 
A) cannot be employed at a union firm until he has joined the union. 
B) cannot be required to join a union as a condition of employment. 
C) must agree when he is hired never to join a union. 
D) is guaranteed a job in government if he cannot find a private sector job.

Question 2

Union membership has fluctuated during the last several decades. Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

Accepted Answer

A) The share of output going to labor has been virtually constant, even though union membership as a share of the labor force has fluctuated. 
B) The share of total output going to labor has followed the same pattern as the business cycle in recent years. 
C) The share of total output going to labor rose as union membership rose from 1945 to 1960 and fell as union membership declined during the 1960 through 2000 period. 
D) The share of total output going to labor has increased substantially, even though during the last several decades union membership has declined. 
A) The share of output going to labor has been virtually constant, even though union membership as a share of the labor force has fluctuated. 
B) The share of total output going to labor has followed the same pattern as the business cycle in recent years. 
C) The share of total output going to labor rose as union membership rose from 1945 to 1960 and fell as union membership declined during the 1960 through 2000 period. 
D) The share of total output going to labor has increased substantially, even though during the last several decades union membership has declined.

Question 3

In 2008, approximately what percent of the nonagricultural workforce belonged to a union?

Accepted Answer

A) 2 percent 
B) 12 percent 
C) 35 percent 
D) 98 percent 
A) 2 percent 
B) 12 percent 
C) 35 percent 
D) 98 percent

Question 4

Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)

Accepted Answer

A) above the national average. 
B) below the national average. 
C) greater than 50 percent. 
D) close to 100 percent. 
A) above the national average. 
B) below the national average. 
C) greater than 50 percent. 
D) close to 100 percent.

Question 5

As the percentage of the labor force belonging to a union fell in the United States during the 1955 through early 2000 period, the share of national income going to labor

Accepted Answer

A) increased 10 percent. 
B) remained approximately the same. 
C) decreased 10 percent. 
D) decreased 20 percent. 
A) increased 10 percent. 
B) remained approximately the same. 
C) decreased 10 percent. 
D) decreased 20 percent.

Question 6

Which of the following statements is correct?

Accepted Answer

A) Approximately 50 percent of our national income is allocated to human capital, while the remaining 50 percent is allocated to physical capital in the form of rents, interest, and corporate profits. 
B) As union membership as a share of the U.S. labor force has declined during the last three decades, the share of national income allocated to physical capital has risen. 
C) Unions have consistently opposed minimum wage legislation because it tends to cause unemployment. 
D) During the past several decades, the share of output going to capital has been virtually constant, even though union membership as a share of the labor force has decreased. 
A) Approximately 50 percent of our national income is allocated to human capital, while the remaining 50 percent is allocated to physical capital in the form of rents, interest, and corporate profits. 
B) As union membership as a share of the U.S. labor force has declined during the last three decades, the share of national income allocated to physical capital has risen. 
C) Unions have consistently opposed minimum wage legislation because it tends to cause unemployment. 
D) During the past several decades, the share of output going to capital has been virtually constant, even though union membership as a share of the labor force has decreased.

Question 7

Which of the following is most likely to belong to a union?

Accepted Answer

A) a government employee 
B) a salesperson 
C) a chef at a four-star restaurant 
D) a taxi driver 
A) a government employee 
B) a salesperson 
C) a chef at a four-star restaurant 
D) a taxi driver

Question 8

If a firm operates in a competitive industry and its unionized labor force is successful in bargaining for a wage increase, where is the firm likely to get the money to pay the higher wages?

Accepted Answer

If it is a competitive industry, the own

Question 9

The experience of the Teamsters in the late 1970s and early 1980s suggests that

Accepted Answer

A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators, independent of market conditions. 
A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators, independent of market conditions.

Question 10

The experience of the Teamsters in the late 1970s and early 1980s suggests that

Accepted Answer

A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators, independent of market conditions. 
A) there are few restraints on the ability of a strong union to increase the wages of its members. 
B) product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members. 
C) higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages. 
D) wages are established by the relative skill of union and management negotiators, independent of market conditions.

Question 11

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 21 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 21 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 12

Which of the following statements is true?

Accepted Answer

A) The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S. labor force. 
B) Inflation in the United States has tended to accelerate as the proportion of the U.S. labor force that is unionized has increased. 
C) Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors. 
D) High real wages cannot be achieved and sustained without increases in output per worker hour. 
A) The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S. labor force. 
B) Inflation in the United States has tended to accelerate as the proportion of the U.S. labor force that is unionized has increased. 
C) Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors. 
D) High real wages cannot be achieved and sustained without increases in output per worker hour.

Question 13

Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?

Accepted Answer

A) The investment expenditures of the unionized employer will tend to fall. 
B) Employment in the nonunion sector will tend to fall. 
C) The costs of the unionized employer will tend to fall. 
D) The output of the unionized employer will tend to increase. 
A) The investment expenditures of the unionized employer will tend to fall. 
B) Employment in the nonunion sector will tend to fall. 
C) The costs of the unionized employer will tend to fall. 
D) The output of the unionized employer will tend to increase.

Question 14

Firms will be much more willing to consent to significant wage increases when

Accepted Answer

A) right-to-work laws are present. 
B) the demand for the final product is weak. 
C) the firm has low product inventory. 
D) the demand for the final product is elastic. 
A) right-to-work laws are present. 
B) the demand for the final product is weak. 
C) the firm has low product inventory. 
D) the demand for the final product is elastic.

Question 15

The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955. During these 25 years, the share of national income allocated to labor (in contrast to capital)

Accepted Answer

A) remained virtually constant. 
B) increased approximately 10 percent. 
C) increased between 15 and 25 percent. 
D) increased 17.6 percent. 
A) remained virtually constant. 
B) increased approximately 10 percent. 
C) increased between 15 and 25 percent. 
D) increased 17.6 percent.

Question 16

Which of the following groups is most highly unionized?

Accepted Answer

A) private wage and salary workers 
B) government employees 
C) technical, sales, and service workers 
D) women 
A) private wage and salary workers 
B) government employees 
C) technical, sales, and service workers 
D) women

Question 17

Which of the following states had the lowest incidence of union membership as a percent of all wage and salary workers in 2010?

Accepted Answer

A) New York, Hawaii, and Alaska 
B) South Carolina, North Carolina, and Arkansas 
C) Illinois, Michigan, and Ohio 
D) Nevada, Hawaii, and Alaska 
A) New York, Hawaii, and Alaska 
B) South Carolina, North Carolina, and Arkansas 
C) Illinois, Michigan, and Ohio 
D) Nevada, Hawaii, and Alaska

Question 18

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

Accepted Answer

A) has remained virtually unchanged. 
B) has increased, as more government workers have decided to unionize. 
C) has decreased. 
D) has gone through wild swings both up and down. 
A) has remained virtually unchanged. 
B) has increased, as more government workers have decided to unionize. 
C) has decreased. 
D) has gone through wild swings both up and down.

Question 19

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

Accepted Answer

A) Almost all of the firms in the industry are unionized. 
B) Foreign competition for the product produced by the union labor is intense. 
C) There is a reduction in the demand for union labor. 
D) The demand for the product produced by the union labor is highly elastic. 
A) Almost all of the firms in the industry are unionized. 
B) Foreign competition for the product produced by the union labor is intense. 
C) There is a reduction in the demand for union labor. 
D) The demand for the product produced by the union labor is highly elastic.

Question 20

During the 2007 to 2008 period, the wage premium of union workers, when compared to similar nonunion workers, was approximately

Accepted Answer

A) 9 percent. 
B) 21 percent. 
C) 28 percent. 
D) 33 percent. 
A) 9 percent. 
B) 21 percent. 
C) 28 percent. 
D) 33 percent.

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

A worker living in a state with a right-to-work law

Union membership has fluctuated during the last several decades. Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

In 2008, approximately what percent of the nonagricultural workforce belonged to a union?

Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)

As the percentage of the labor force belonging to a union fell in the United States during the 1955 through early 2000 period, the share of national income going to labor

Which of the following statements is correct?

Which of the following is most likely to belong to a union?

If a firm operates in a competitive industry and its unionized labor force is successful in bargaining for a wage increase, where is the firm likely to get the money to pay the higher wages?

The experience of the Teamsters in the late 1970s and early 1980s suggests that

The experience of the Teamsters in the late 1970s and early 1980s suggests that

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

Which of the following statements is true?

Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?

Firms will be much more willing to consent to significant wage increases when

The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955. During these 25 years, the share of national income allocated to labor (in contrast to capital)

Which of the following groups is most highly unionized?

Which of the following states had the lowest incidence of union membership as a percent of all wage and salary workers in 2010?

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

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

During the 2007 to 2008 period, the wage premium of union workers, when compared to similar nonunion workers, was approximately

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

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