Deck 45: Unions

Question 1

The percentage of government workers that are unionized ________ the percentage of private workers that are unionized.

A)is greater than
B)has always been less than
C)is roughly equal to
D)is, since the PATCO strike, smaller than

Answer 1

A

Question 2

The peak of union representation in the workforce was

A)50% in 1935.
B)40% in 1945.
C)30% in 1975.
D)15% in 1985.

Answer 2

C

Question 3

The percentage of workers represented by unions reached its peak in the

A)1940s.
B)1970s.
C)1980s.
D)1990s.

Answer 3

B

Question 4

The number of workers represented by unions has

A)decreased.
B)increased.
C)stay roughly the same.
D)represented an ever-larger fraction of the shrinking U.S. labor force.

Question 5

The current percentage of the government workers represented by unions is approximately

A)35%.
B)25%.
C)15%.
D)5%.

Question 6

If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets

A)will cause you to believe the wage will be higher than it is.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 7

In Figure 45.1, the opportunity cost to workers of working at the equilibrium wage-labor combination is Figure 45.1

A)OACL*
B)OW*CL*
C)OBCL*
D)ABC

Question 8

In Figure 45.2, at the perfectly competitive equilibrium, the number of workers hired will be Figure 45.2

A)L'
B)L*
C)less than L'
D)between L' and L*

Question 9

The current percentage of the private work force represented by unions is approximately

A)30%.
B)20%.
C)10%.
D)7%.

Question 10

The use of the supply and demand model to analyze labor markets implicitly assumes that there

A)are many buyers and sellers of labor.
B)is one buyer of labor.
C)is one seller of labor.
D)is one buyer and one seller of labor.

Question 11

In Figure 45.1, the profit that employers make from the work of their employees at the equilibrium wage-labor combination is ` Figure 45.1

A)OACL*
B)W*AC
C)BW*C
D)ABC

Question 12

The use of the supply and demand model to analyze labor markets implicitly assumes that there is ____ governing the labor market.

A)perfect competition
B)monopoly
C)monopsony
D)bi-lateral monopoly

Question 13

The current percentage of the total work force represented by unions is approximately

A)35%.
B)25%.
C)11%.
D)5%.

Question 14

In Figure 45.1, the money that employers pay their employees at the equilibrium wage-labor combination is Figure 45.1

A)OACL*
B)OW*CL*
C)OBCL*
D)ABC

Question 15

The use of the supply and demand model to analyze labor markets implicitly assumes that

A)sellers of labor have good knowledge about their opportunities.
B)there is one buyer of labor.
C)there is one seller of labor.
D)there is one buyer and one seller of labor.

Question 16

If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets

A)is inappropriate.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 17

In Figure 45.1, the (producer)surplus that employees get at the equilibrium wage-labor combination is Figure 45.1

A)OACL*
B)W*AC
C)BW*C
D)ABC

Question 18

In Figure 45.1, the added revenue that employers bring in from the work of their employees at the equilibrium wage-labor combination is Figure 45.1

A)OACL*
B)OW*CL*
C)OBCL*
D)ABC

Question 19

If there are powerful unions in a labor market, the use of the supply and demand model to analyze labor markets

A)will cause you to believe that more people will be hired than there will be.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 20

Since the 1970s, the percentage or all workers represented by unions has

A)decreased.
B)increased.
C)stayed the same.
D)represented an ever-larger fraction of the shrinking U.S. labor force.

Question 21

A company town model changes the market form from that of perfect competition to that of a

A)monopoly.
B)monopsony.
C)oligopoly.
D)monopolistic competition.

Question 22

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

A)the demand for these workers to increase.
B)the wage paid to these workers to decrease.
C)the supply for these workers to increase.
D)the supply curve for these workers to become horizontal at some point.

Question 23

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

A)the demand for these workers to decrease.
B)the wage paid to these workers to decrease.
C)the supply for these workers to increase.
D)the supply curve for these workers to become vertical at some point.

Question 24

In Figure 45.2, at the one-employer "company town solution", the wage paid to workers will be Figure 45.2

A)W*
B)W₁
C)W₂
D)an undetermined point between W₁ and W₂

Question 25

In Figure 45.3, the fact that there is a limit on the number of workers that can be certified is shown by Figure 45.3

A)the kinked shape of the new supply curve.
B)the slope the old supply curve.
C)the slope of the old demand curve.
D)the increase in the demand curve.

Question 26

To the degree that the IBEW ensures that through its rigorous training requirements for prospective electricians are qualified to do the work, it is

A)shifting the supply of electricians to the left.
B)shifting the supply of electricians to the right.
C)shifting the demand for electricians to the right.
D)kinking the supply of electricians to make it vertical at the level of the constraint.

Question 27

In Figure 45.3, the fact that workers become more valuable to employers because of the training required for certification is shown by Figure 45.3

A)the kinked shape of the new supply curve.
B)the shift in old supply curve.
C)the slope of the old demand curve.
D)the increase in the demand curve.

Question 28

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

A)will cause you to believe the wage will be higher than it is.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 29

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

A)the demand for these workers to decrease.
B)the wage paid to these workers to increase.
C)the supply for these workers to increase.
D)the supply curve for these workers to become horizontal at some point.

Question 30

To the degree that the Plumbers and Steamfitters union conducts costly training and apprentice requirements for prospective electricians, it is

A)shifting the supply of plumbers to the left.
B)shifting the supply of plumbers to the right.
C)shifting the demand for plumbers to the left.
D)kinking the supply of plumbers to make it vertical at the level of the constraint.

Question 31

In Figure 45.2, at the one-employer "company town solution", the number of workers hired will be Figure 45.2

A)L'
B)L*
C)less than L'
D)between L' and L*

Question 32

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

A)is inappropriate.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 33

To the degree that the Plumbers and Steamfitters union ensures that through its rigorous training requirements for prospective plumbers are qualified to do the work, it is

A)shifting the supply of plumbers to the left.
B)shifting the supply of plumbers to the right.
C)shifting the demand for plumbers to the right.
D)kinking the supply of plumbers to make it vertical at the level of the constraint.

Question 34

If there are powerful buyers in a labor market, the use of the supply and demand model to analyze labor markets

A)will cause you to believe that more people will be hired than there will be.
B)is completely accurate.
C)will cause you to believe the wage will be lower than it is.
D)will cause you to believe that fewer people will be hired than there will be.

Question 35

In Figure 45.2, at the perfectly competitive equilibrium, the wage will be Figure 45.2

A)W*
B)W₁
C)W₂
D)between W₁ and W₂

Question 36

To the degree that the American Medical Association constraints the number of new spots that are available in the nation's medical schools, it is

A)shifting the demand for physicians to the right.
B)shifting the supply of physicians to the right.
C)shifting the demand for physicians to the left.
D)kinking the supply of physicians to make it vertical at the level of the constraint.

Question 37

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

A)the demand for these workers to decrease.
B)the wage paid to these workers to decrease.
C)the supply for these workers to decrease.
D)the supply curve for these workers to become horizontal at some point.

Question 38

In Figure 45.3, the fact that workers must pay for their apprenticeship in order to be certified is shown by Figure 45.3

A)the kinked shape of the new supply curve.
B)the shift in the old supply curve.
C)the slope of the old demand curve.
D)the increase in the demand curve.

Question 39

In Figure 45.4, when compared to the perfectly competitive equilibrium, the wage paid to employees as a result of unionization Figure 45.4

A)increases from W* to W'.
B)decreases from W' to W*.
C)remains at W'.
D)remains at W*.

Question 40

To the degree that the IBEW conducts costly training and apprentice requirements for prospective electricians, it is

A)shifting the supply of electricians to the left.
B)shifting the supply of electricians to the right.
C)shifting the demand for electricians to the left.
D)kinking the supply of electricians to make it vertical at the level of the constraint.

Question 41

In Figure 45.4, it is clearly the case that Figure 45.4

A)the total amount paid to workers depends upon the elasticity of labor demand.
B)the total amount of labor employed is less under perfect competition than unionization.
C)every individual worker is better off under perfect competition than unionization.
D)every individual worker is better off under unionization than perfect competition.

Question 42

The future of private sector labor unions is

A)bright, because of the spectacular success of the PATCO strike.
B)bright, because of the increased availability of undocumented workers from other countries.
C)bleak, because of the growing economic importance of the service and retailing industries.
D)bleak, because of the recent increases in the minimum wage earned by non-union workers.

Question 43

In Figure 45.5, where one union is bargaining against one employer, the highest possible negotiated wage paid to workers will be Figure 45.5

A)W*.
B)W_1.
C)W_2.
D)an undetermined point between W₁ and W_2.

Question 44

Firefighters and other municipal employees can have a key advantage when unionizing because

A)municipal employers tend to be much less inexperienced negotiators.
B)municipal employees such as firefighters tend to be much more aggressive negotiators.
C)municipal employers, unlike private-sector employers, are always strongly pro-union.
D)municipal employers, unlike businesses, are unable to move to another state to avoid unionization.

Question 45

When the number of workers hired deviates from the perfectly competitive level, economists see that the

A)gain to workers is always outweighed by the loss to employers.
B)gain to workers is always less than the loss to employers.
C)gain to the group that is helped is always greater than the loss to the group hurt.
D)gain to the group that is helped is always less than the loss to the group hurt.

Question 46

In Figure 45.5, where one union is bargaining against one employer, the lowest possible negotiated wage paid to workers will be Figure 45.5

A)W*.
B)W_1.
C)W_2.
D)an undetermined point between W₁ and W_2.

Question 47

In Figure 45.4, it is clearly the case that Figure 45.4

A)the total amount paid to workers is greater under perfect competition than unionization.
B)the total amount of labor employed is greater under perfect competition than unionization.
C)every individual worker is better off under perfect competition than unionization.
D)every individual worker is better off under unionization than perfect competition.

Question 48

Economists label the net loss to society due to an uncompetitive labor market structure as a

A)consumer surplus.
B)producer surplus.
C)consumer deficit.
D)deadweight loss.

Question 49

The future of private sector labor unions is

A)bright, because of the success of the PATCO strike.
B)bright, because of the increased availability of undocumented workers from other countries.
C)bleak, because of the growing economic importance of small employers in service industries.
D)bleak, because of the recent increases in the minimum wage earned by non-union workers.

Question 50

The future of private sector labor unions is

A)bleak, because of growing pressure on U.S. manufacturers from foreign competition to control costs.
B)bleak, because of the recent increases in the minimum wage earned by non-union workers.
C)bright, because of rapid growth of maquiladoras on the Mexican side of the Rio Grande.
D)bright, because of the surging college enrollment trends of recent U.S. high school graduates.

Question 51

Which of the following acts limited the power of unions?

A)The Taft-Hartley Act
B)The Norris-LaGuardia Act
C)The National Industrial Recovery Act
D)The Wagner Act

Question 52

The Clayton Act was

A)declared unconstitutional by the United States Supreme Court.
B)repealed by the next Congress.
C)vetoed by President Wilson.
D)eviscerated by President George W. Bush.

Question 53

Which of the following granted collective bargaining rights to Federal government workers?

A)The Taft-Hartley Act
B)The Norris-LaGuardia Act
C)The National Industrial Recovery Act
D)An executive order of President Kennedy

Question 54

The future of private sector labor unions is

A)bright, because of the booming Chinese export-driven economy.
B)bleak, because of the growing economic influence of Walmart upon its suppliers.
C)bleak, because of the sweep of Congress by Democrats in 2006.
D)bright, because of the numerous recent innovations in recreational technologies now available for overworked and highly-stressed union members.

Question 55

The first labor-friendly law that allowed unions to organize labor and collectively bargain was

A)The Clayton Act.
B)The Norris-LaGuardia Act.
C)The National Industrial Recovery Act.
D)The Wagner Act.

Question 56

A union model changes the market form from that of perfect competition to that of a

A)monopoly.
B)monopsony.
C)oligopoly.
D)monopolistic competition.

Question 57

In Figure 45.5, where one union is bargaining against one employer, the wage paid to workers will be Figure 45.5

A)W*.
B)W_1.
C)W_2.
D)an undetermined point between W₁ and W_2.

Question 58

In 2005, the membership of the AFL-CIO changed significantly when the

A)CIO separated from the AFL.
B)Teamsters and other unions withdrew from the umbrella organization.
C)AFL-CIO became a union of public-sector employees only.
D)AFL-CIO was able to organize its first factories in mainland China.

Question 59

In Figure 45.4, when compared to the perfectly competitive equilibrium, the number of workers hired as a result of unionization Figure 45.4

A)decreases from L* to L'.
B)increases from L' to L*.
C)remains at L'.
D)remains at L*.

Question 60

The 2005 dispute between the Teamsters and the AFL-CIO centered around whether union

A)resources would be devoted to electing sympathetic politicians or expanding union membership.
B)negotiating priorities would seek hourly wage increases over a shorter work week.
C)members who were truck drivers would also be required to unload their own trucks.
D)negotiating priorities would seek improved healthcare benefits over hourly wage increases.

Question 61

Public employees (more frequently than private employees)tend

A)to begin and end their career with the same employer.
B)participate in defined contribution programs.
C)fall for Ponzi schemes.
D)have well-funded private savings plans.

Question 62

Private employees (more frequently than public employees)tend to have their private retirements in

A)defined benefit pension programs.
B)defined contribution programs.
C)Ponzi schemes.
D)Social Security.

Question 63

Which of the following explains why private employers (more frequently than public employers)have tended to shift away from defined benefit programs?

A)Their employees have begun to reduce the amount they shift from one employer to the next.
B)Their employees have begun to increase the amount they shift from one employer to the next.
C)Their employees have increasingly fallen victim to Ponzi schemes.
D)People have begun to create well-funded private savings plans.

Question 64

Public employees (more frequently than private employees)tend to have their retirements in

A)defined benefit pension programs.
B)defined contribution programs.
C)Ponzi schemes.
D)private savings plans.

Question 65

Which of the following explains why public employees (more frequently than private employees)tend be in defined benefit programs?

A)They tend to begin and end their career with the same employer.
B)They tend to move from employer to employer.
C)They tend to fall for Ponzi schemes.
D)They have well-funded private savings plans.

Question 66

Which of the following explains why private employees (more frequently than public employees)tend be in defined contribution programs?

A)They tend to begin and end their career with the same employer.
B)They tend to move from employer to employer.
C)They tend to fall for Ponzi schemes.
D)They have well-funded private savings plans.