Question 1

Suppose that under its collective bargaining agreement,the XYZ Co.can only hire union members in good standing at the time of hiring.XYZ Co.is

Accepted Answer

A) a union shop. 
B) a closed shop. 
C) an open shop. 
D) a company union. 
A) a union shop. 
B) a closed shop. 
C) an open shop. 
D) a company union. B

Question 2

$$\begin{array}{l}
\begin{array} {lll } 
\text {Quantity of }&\text {Required }\
\text { Labor Supplied}&\text { Wage Rate}\
\hline 1 &\ \$ 6.00  \
2 & 9.00 \
3 & 12.00 \
4 & 15.00 \
5 & 18.00 \
6 & 21.00 \
7 & 24.00 \
8 & 27.00 \
9 & 30.00 \
10 & 33.00\
\end{array}
\end{array}$$
-According to the above table,the marginal factor cost of the fifth worker is

Accepted Answer

A) $30.00. 
B) $45.00. 
C) $60.00. 
D) $90.00. 
A) $30.00. 
B) $45.00. 
C) $60.00. 
D) $90.00. A

Question 3

-In the above figure,if the union has Q2 members and wants to ensure that all members have jobs,it will set wage equal to

Accepted Answer

A) W1. 
B) W2. 
C) W3. 
D) none of the above. 
A) W1. 
B) W2. 
C) W3. 
D) none of the above. B

Question 4

Any practice that forces employers to use more labor than they would otherwise use is

Accepted Answer

A) closed shop. 
B) monopolistic exploitation. 
C) a craft union. 
D) featherbedding. 
A) closed shop. 
B) monopolistic exploitation. 
C) a craft union. 
D) featherbedding.

Question 5

In order to hire additional laborers,a monopsony must

Accepted Answer

A) lower the supply of labor. 
B) raise the wage rate. 
C) advertise for the labor. 
D) do nothing. 
A) lower the supply of labor. 
B) raise the wage rate. 
C) advertise for the labor. 
D) do nothing.

Question 6

The purpose of a strike is

Accepted Answer

A) to obtain higher wages for union members only. 
B) to solve jurisdictional disputes. 
C) to obtain a closed shop. 
D) to force management to accept the union's proposed contract terms. 
A) to obtain higher wages for union members only. 
B) to solve jurisdictional disputes. 
C) to obtain a closed shop. 
D) to force management to accept the union's proposed contract terms.

Question 7

A closed shop is a business enterprise in which

Accepted Answer

A) employees cannot belong to a union when they are employed,and cannot join a union and keep working there. 
B) employees must join the union to maintain employment. 
C) employees must belong to the union before they can be employed. 
D) employees cannot belong to the union when they are hired,but may join the union later and keep their jobs. 
A) employees cannot belong to a union when they are employed,and cannot join a union and keep working there. 
B) employees must join the union to maintain employment. 
C) employees must belong to the union before they can be employed. 
D) employees cannot belong to the union when they are hired,but may join the union later and keep their jobs.

Question 8

Collective bargaining contracts between management and the union negotiators

Accepted Answer

A) also apply to the workers who are not members of the union. 
B) usually are settled only after a strike. 
C) cover wages only. 
D) cover wages and fringe benefits only. 
A) also apply to the workers who are not members of the union. 
B) usually are settled only after a strike. 
C) cover wages only. 
D) cover wages and fringe benefits only.

Question 9

How can restricting entry into a union help boost members' wages without the union specifically setting wages?

Accepted Answer

With union membership limited,the quanti

Question 10

"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?

Accepted Answer

Disagree.The hourly wage earned a typica

Question 11

A monopsony has an upward sloping supply curve because

Accepted Answer

A) diminishing marginal product to scale does not exist in a monopsony. 
B) each additional unit of labor costs less. 
C) when more units of labor are hired,all laborers must receive the higher wage. 
D) when more units of labor are hired,only the new workers receive the higher wage. 
A) diminishing marginal product to scale does not exist in a monopsony. 
B) each additional unit of labor costs less. 
C) when more units of labor are hired,all laborers must receive the higher wage. 
D) when more units of labor are hired,only the new workers receive the higher wage.

Question 12

The United Auto Workers is an example of

Accepted Answer

A) a public-sector union. 
B) a craft union. 
C) an industrial union. 
D) a socialist union. 
A) a public-sector union. 
B) a craft union. 
C) an industrial union. 
D) a socialist union.

Question 13

Legislation that makes it illegal to require union membership as a condition of continuing employment is the

Accepted Answer

A) National Labor Relations Act. 
B) Wagner Act. 
C) Congress of Industrial Organizations. 
D) collection of right-to-work laws. 
A) National Labor Relations Act. 
B) Wagner Act. 
C) Congress of Industrial Organizations. 
D) collection of right-to-work laws.

Question 14

A company can hire non-union workers,but a condition of their employment is that they must join the union within their first 90 days on the job.This is an example of a

Accepted Answer

A) right-to-work law. 
B) closed-shop. 
C) union shop. 
D) voluntary craft union. 
A) right-to-work law. 
B) closed-shop. 
C) union shop. 
D) voluntary craft union.

Question 15

A labor union is likely to seek all of the following EXCEPT

Accepted Answer

A) economic improvements for their members. 
B) safer working conditions. 
C) increased competitiveness in the labor market. 
D) increased job security for its members. 
A) economic improvements for their members. 
B) safer working conditions. 
C) increased competitiveness in the labor market. 
D) increased job security for its members.

Question 16

A union can be viewed as a monopoly seller of a service.What are the three wage and employment strategies the union might use?

Accepted Answer

The union might try to employ all member

Question 17

Labor unions are organizations that

Accepted Answer

A) try to secure more opportunities for more workers in the economy. 
B) try to secure economic improvements for all workers. 
C) try to secure economic improvements for their members. 
D) try to make labor markets more competitive. 
A) try to secure more opportunities for more workers in the economy. 
B) try to secure economic improvements for all workers. 
C) try to secure economic improvements for their members. 
D) try to make labor markets more competitive.

Question 18

Samuel Gompers served as the first leader of the

Accepted Answer

A) Knights of Labor. 
B) American Federation of Labor. 
C) Congress of Industrial Organizations. 
D) United Steel Workers. 
A) Knights of Labor. 
B) American Federation of Labor. 
C) Congress of Industrial Organizations. 
D) United Steel Workers.

Question 19

An example of featherbedding is

Accepted Answer

A) the union practice that requires younger workers to be laid off first in a recession. 
B) a requirement that all construction workers working on government-funded construction projects must be paid union wages. 
C) employer-paid dental insurance negotiated by the union. 
D) a requirement on railroads to keep a fireman on board after the introduction of diesel engines. 
A) the union practice that requires younger workers to be laid off first in a recession. 
B) a requirement that all construction workers working on government-funded construction projects must be paid union wages. 
C) employer-paid dental insurance negotiated by the union. 
D) a requirement on railroads to keep a fireman on board after the introduction of diesel engines.

Question 20

A monopsonist is currently employing 50 workers at $10 an hour.It wants to hire an additional worker,but will have to pay the worker $10.10.The marginal factor cost is

Accepted Answer

A) ten cents. 
B) $10.00. 
C) $10.10. 
D) $15.10. 
A) ten cents. 
B) $10.00. 
C) $10.10. 
D) $15.10.

Exam 16: Unions and Labor Market Monopoly Power

Suppose that under its collective bargaining agreement,the XYZ Co.can only hire union members in good standing at the time of hiring.XYZ Co.is

Quantity of Required Labor Supplied Wage Rate 1 \ \ 6.00 2 9.00 3 12.00 4 15.00 5 18.00 6 21.00 7 24.00 8 27.00 9 30.00 10 33.00 -According to the above table,the marginal factor cost of the fifth worker is

-In the above figure,if the union has Q2 members and wants to ensure that all members have jobs,it will set wage equal to

Any practice that forces employers to use more labor than they would otherwise use is

In order to hire additional laborers,a monopsony must

The purpose of a strike is

A closed shop is a business enterprise in which

Collective bargaining contracts between management and the union negotiators

How can restricting entry into a union help boost members' wages without the union specifically setting wages?

"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?

A monopsony has an upward sloping supply curve because

The United Auto Workers is an example of

Legislation that makes it illegal to require union membership as a condition of continuing employment is the

A company can hire non-union workers,but a condition of their employment is that they must join the union within their first 90 days on the job.This is an example of a

A labor union is likely to seek all of the following EXCEPT

A union can be viewed as a monopoly seller of a service.What are the three wage and employment strategies the union might use?

Labor unions are organizations that

Samuel Gompers served as the first leader of the

An example of featherbedding is

A monopsonist is currently employing 50 workers at $10 an hour.It wants to hire an additional worker,but will have to pay the worker $10.10.The marginal factor cost is

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

-In the above figure,if the union has Q₂ members and wants to ensure that all members have jobs,it will set wage equal to