Deck 3: Economic, Social, and Political Environments

Question 1

Temporary and casual work falls under the category of contingent work.

Answer 1

True

Question 2

What does "elasticity of supply" mean?

A) Labour responds to increased demand by raising the wage rate.
B) Wage changes are flexible.
C) Labour supply is increased due to a small change in the wage rate.
D) A steep demand curve results in large wage increases.

Answer 2

C

Question 3

In theory and in practice, labour markets are always competitive.

Answer 3

False

Question 4

According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.

Question 5

What do Marshall's four conditions do?

A) explain what elasticity means
B) help management in their evaluating procedures
C) describe the guidelines for proper bargaining
D) determine labour responsiveness to change in wages

Question 6

Monopsony exists when a firm is a wage taker but not a wage setter.

Question 7

What kinds of markets generally have lower wages and employment levels?

A) monopsonistic markets
B) all markets
C) highly mobile job markets
D) monopolistic markets

Question 8

In today's world, what influences industrial relations?

A) declining labour intensity
B) macroeconomic policy regarding liberalization of markets
C) rising regional unemployment
D) very elastic labour supply

Question 9

An argument in favour of restructuring policies is that they benefit workers who lack the necessary skills to compete in the new economy.

Question 10

An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply.

Question 11

What are teleworking and flextime examples of?

A) contingent work
B) occupational shifts
C) employee demands
D) union demands

Question 12

Which of the following applies to people who are employed part-time?

A) They work the same hours as all other part time employees
B) They usually work thirty-five hours per week.
C) They work fewer hours than the average employee.
D) They usually work less than thirty hours per week.

Question 13

A monopsony occurs when an organization is the only market buyer of a good, service, or labour.

Question 14

Work organization, labour force composition, and individualization of human resources are examples of some of the profound changes that have occurred over the last thirty years.

Question 15

According to the text, when will unions have more power?

A) when product markets are very competitive
B) when it is easy to substitute labour for capital
C) when labour costs are a small proportion of total costs
D) when the market for substitutes is competitive

Question 16

In the context of elasticity of demand, what does "steep demand" mean?

A) A large increase in the quantity demanded will cause a small increase in wages.
B) A small increase in the quantity demanded will cause a large increase in wages.
C) A small increase in the quantity demanded will cause a small increase in wages.
D) A large increase in the quantity demanded will cause a large increase in wages.

Question 17

An industry is said to be labour intensive if labour costs are a low proportion of total costs.

Question 18

Unions will have more bargaining power when there is little competition in the firm's product market.

Question 19

Which statement gives the reason for union decline?

A) There is more individual protection under employment laws.
B) Globalization has reduced levels of competition.
C) Improved human resources practices meet individual needs.
D) There have been many changes in labour and employment legislation.

Question 20

Which of the following describes the current labour environment?

A) Industrial relations in Canada has remained unchanged over the years.
B) Unions are happy with the current system in North America.
C) Governments are increasingly reluctant to intervene in labour markets.
D) More women, occupational shifts and contingent workers are affecting unions.

Question 21

Which of the following conditions will limit labour mobility?

A) family responsibilities
B) fluency in several languages
C) a small local population
D) high local unemployment

Question 22

Which of the following challenges face today's Canadian unions?

A) contingent workers are difficult to organize
B) part-time work represent 4 percent of today's labour force
C) work in Canada is undergoing significant economic change
D) workers are more interested in politics than workplace issues

Question 23

Which of the following terms refers to the desire to achieve a balance between workplace obligations and personal responsibilities?

A) work-employment trade-off
B) work-life balance
C) wage-work trade-off
D) life-employment balance

Question 24

What does Weber's theory of social closure tell us?

A) Many occupations erect barriers to restrict supply and affect earnings.
B) Many institutions remove barriers to increase supply and maintain earnings.
C) Many occupations erect barriers to increase supply and suppress earnings.
D) Many institutions remove barriers to restrict supply and enhance earnings.

Question 25

Workers' dissatisfaction with their jobs can lead to demand for unionization. Support for unions in North America remains strong, and yet surveys show workers are also very satisfied with their jobs and pay. What can explain these results?

A) The reported studies used different research methods and obtained different results.
B) Workers are generally unaware of economic changes that affect them.
C) Workers want a collective, independent voice at work.
D) Results from studies conducted in Quebec influenced the research findings.

Question 26

What is a hiring hall?

A) a management-run operation used to recruit workers
B) a human resources tactic used to encourage employees to take different jobs within the firm
C) a union-run centre that coordinates the match between labour and job sites
D) a joint union-management plan to recruit workers

Question 27

Why are poverty rates in Canada increasing?

A) More elderly people are living in poverty.
B) Disposable income has fallen.
C) More children are living below the poverty line.
D) Mandatory retirement has been abolished.

Question 28

What are noneconomic sources of union power?

A) immigration policy
B) work-leisure lobbyists
C) community groups
D) mandatory union dues check-off

Question 29

In a global economy where competition is intense, why will employers have greater bargaining power?

A) demand for labour is elastic
B) supply of labour is elastic
C) substitutes for local labour are expensive
D) product markets are less competitive

Question 30

What are Marshall's four conditions related to wage elasticity?

A) wages, labour market, substitution effect, and product market
B) product market, substitution effect, market for substitutes, and labour intensity
C) labour intensity, market for products, substitution effect, and wages
D) labour market, work-life balance, product market, and wages

Question 31

What is shown by Canada Post's planned outsourcing of call-centre jobs?

A) the substitution effect of capital for labour
B) the wage-employment tradeoff in a competitive product market
C) an inelastic demand for labour
D) the existence of labour market equilibrium

Question 32

Migration of Canadian citizens from one province to another is an example of which concept?

A) contingent work
B) institutional barriers to supply
C) demographic factors
D) labour intensity

Question 33

What is working at a nontraditional location outside the employer's workplaces called?

A) part-time work
B) contingent work
C) flextime work
D) telework

Question 34

Why do new forms of work in a post-industrial economy present major challenges for collective bargaining?

A) Industrial relations practices were designed for workers in stable, long-term employment.
B) Unions are uncertain how to manage their diverse new forms of power.
C) The great variety of labour legislation makes it difficult to know which laws to follow.
D) Contemporary workers are very dissatisfied with their jobs.

Question 35

Which category lies outside the framework for analysis of work-life balance?

A) economic
B) demographic
C) social
D) legal

Question 36

Which of the following describes the current Canadian economy?

A) International immigrants' birth rates do not affect potential labour supply
B) Retirement choices, leisure choices and career patterns have little impact on labour supply.
C) Unions are building a base of power from sources other than labour markets.
D) As wages rise, workers want and take more leisure time.

Question 37

What relationship is there between poverty rates and the environment of industrial relations?

A) Poverty rates in North America have declined as average incomes have risen since 1989.
B) Union and non-union workers experience nearly identical earning inequality.
C) The widening gap between the wealthy and the poor is directly linked to union decline.
D) Union support is greatest among the "working poor."

Question 38

Which of the following statements explains why there has not been a steep union decline in Canada?

A) occupational shift from manufacturing to service
B) the existence of labour-friendly laws
C) the political system favours business
D) a single labour law covers most workers

Question 39

Which term refers to the situation in which it is easier to use machines and technology than to use labour?

A) product market
B) substitution effect
C) electronic commerce
D) labour intensity

Question 40

The emergence of specialized qualifications and certifications for project managers and software engineers is an example of which phenomenon?

A) noneconomic sources of labour power
B) monopsony
C) Weber's closure theory
D) compositional changes in the workforce

Question 41

Why has the Canadian labour movement organized new members and avoided union decline?

Question 42

What three important social and historic experiences have led Canada to accept collective bargaining?

Question 43

What are the components of work-life conflict?

Question 44

Which important social and historic experience has led Canada to take a different approach than the United States' opposition to collective bargaining?

A) 1982 Charter of Rights and Freedoms facilitates collective bargaining
B) American-owned companies in Canada operate under U.S. law.
C) right to work legislation in the U.S. does not apply to Canadians working in the U.S.
D) the attack on the World Trade Center in 2001 killed a number of Canadian workers

Question 45

Why do new forms of whork in a post-industrial economy present major challenges for collective bargaining?

A) Industrial relations practices were designed for workers in stable, long-term employment.
B) Unions are uncertain how to manage their diverse new forms of power.
C) The great variety of labour legislation makes it difficult to know which laws to follow.
D) Contemporary workers are very dissatisfied with their jobs.

Question 46

How have unions managed to remain an important force in the Canadian workplace despite major structural changes?

A) There are many more contingent workers in today's workforce.
B) Workers in small workplaces have unionized.
C) Large number of unionized workers have been laid off in manufacturing.
D) Unions are popular in information technology firms.

Question 47

Why is globalization considered a force that restricts governments?

A) Countries have to comply with international policies.
B) The federal government can experiment with reforms.
C) Progressive governments influence global labour policy.
D) Most large countries have conservative governments.

Question 48

Which of the following statements explains why unions have declined rapidly in the U.S. but have maintained strength in Canada?

A) The American economy has shifted away from manufacturing, but the Canadian economy has not.
B) More Canadian families benefit from a stay-at-home parent who does not work.
C) Canadian political parties have little power to change legislation.
D) Canada has over a dozen labour laws, while the U.S. has only one.

Question 49

Define the five types of contingent work.

Question 50

Many believe that unions have outlived their usefulness. What reasons do they give for believing that unions will eventually decline?