Question 1

Suppose a union collects dues at 1 percent of the total wage bill.Maximum dues (and maximum total labor cost) would be achieved by hiring the amount of labor where

Accepted Answer

A)  The supply curve intersects the marginal wage curve.
B)  The marginal wage is zero.
C)  The factor demand curve intersects the factor supply curve.

Question 2

The equilibrium wage rate is determined by

Accepted Answer

A)  Individuals but not firms.
B)  Market labor supply and market labor demand.
C)  Labor unions.

Question 3

Refer to Figure 31.3 for a competitive labor market.  1 to S2 could be caused by:. A) An increase in the wage rate. B) The unionization of another labor market. C) An increase in the price of the product being produced." class="answers-bank-image d-inline" rel="preload" >A shift in labor supply from S1 to S2 could be caused by:.

Accepted Answer

A)  An increase in the wage rate.
B)  The unionization of another labor market.
C)  An increase in the price of the product being produced.

Question 4

The collective bargaining process can result in a wage below the supply curve of labor.

Accepted Answer

A) True 
 B)False

Question 5

Unions do not need to worry about the effects of greater employment numbers on the wage rate.

Accepted Answer

A) True 
 B)False

Question 6

In order to increase their power,unions have been merging across craft and industry lines.

Accepted Answer

A) True 
 B)False

Question 7

Typical goals of a labor union in the United States include

Accepted Answer

A)  Higher profit,higher output,and greater productivity.
B)  Higher wages,better working conditions,and more nonwage compensation.
C)  More vacation time,higher profit,and more flexible workplace rules.

Question 8

-Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost) and the marginal wage.Which of the following wages,in Table 31.1,would allow the most workers to be hired?

Accepted Answer

A)  $10 per hour.
B)  $14 per hour.
C)  $18 per hour.

Question 9

A union should calculate the marginal wage to determine how additional labor will change the average wage.

Accepted Answer

A) True 
 B)False

Question 10

When a strike or a lockout occurs,

Accepted Answer

A)  Only labor suffers.
B)  Both labor and management suffer.
C)  Only management suffers.

Question 11

What is a union shop,and what is its purpose?

Accepted Answer

A union shop is an employment situation ...

Question 12

The difference between craft unions and industrial unions is that industrial unions usually

Accepted Answer

A)  Are organized along democratic lines,while craft unions are undemocratic.
B)  Include workers in an industry,while craft unions represent workers with a particular skill.
C)  Include workers with a particular skill,while craft unions represent workers in an industry.

Question 13

The unionized percentage of the labor force in the United States has been increasing steadily since the 1950s.

Accepted Answer

A) True 
 B)False

Question 14

Unlike most monopolies,unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Accepted Answer

A) True 
 B)False

Question 15

If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11th worker is

Accepted Answer

A)  $4 per hour.
B)  $14 per hour.
C)  $154 per hour.

Question 16

In a monopoly labor market,the optimal union wage can be read off the marginal revenue product curve.

Accepted Answer

A) True 
 B)False

Question 17

The exercise of union power will tend to

Accepted Answer

A)  Reduce the supply of labor available to nonunion industries.
B)  Cause profits to be higher in unionized industries.
C)  Increase the supply of labor available to nonunion industries.

Question 18

The In the News article titled "The GM-UAW Deal" states,"After months of negotiations and a 41-hour strike,GM and the UAW signed a new four-year contract in September 2007." The contract included job guarantees and back-to-work bonuses,but the primary objective of unions is to

Accepted Answer

A)  Lower the wages of nonunion members.
B)  Raise the wages of union members.
C)  Raise the level of output so members can earn more.

Question 19

The desired level of union employment occurs where the market wage curve intersects the labor supply curve.

Accepted Answer

A) True 
 B)False

Question 20

Workers who organize themselves along industry lines are represented by

Accepted Answer

A)  Skill unions.
B)  Industrial unions.
C)  Manufacturing unions.

Exam 31: Labor Unions

The unionized percentage of the labor force in the United States has been increasing steadily since the 1950s.

Correct AnswerverifiedShow Answer

The collective bargaining process can result in a wage below the supply curve of labor.

Correct AnswerverifiedShow Answer

In order to increase their power,unions have been merging across craft and industry lines.

Correct AnswerverifiedShow Answer

The equilibrium wage rate is determined by

Correct AnswerverifiedShow Answer

The In the News article titled "The GM-UAW Deal" states,"After months of negotiations and a 41-hour strike,GM and the UAW signed a new four-year contract in September 2007." The contract included job guarantees and back-to-work bonuses,but the primary objective of unions is to

Correct AnswerverifiedShow Answer

The difference between craft unions and industrial unions is that industrial unions usually

Correct AnswerverifiedShow Answer

A union should calculate the marginal wage to determine how additional labor will change the average wage.

Correct AnswerverifiedShow Answer

If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11th worker is

Correct AnswerverifiedShow Answer

Workers who organize themselves along industry lines are represented by

Correct AnswerverifiedShow Answer

Unions do not need to worry about the effects of greater employment numbers on the wage rate.

Correct AnswerverifiedShow Answer

Unlike most monopolies,unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.

Correct AnswerverifiedShow Answer

-Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost) and the marginal wage.Which of the following wages,in Table 31.1,would allow the most workers to be hired?

Correct AnswerverifiedShow Answer

Refer to Figure 31.3 for a competitive labor market. A shift in labor supply from S1 to S2 could be caused by:.

Correct AnswerverifiedShow Answer

The exercise of union power will tend to

Correct AnswerverifiedShow Answer

In a monopoly labor market,the optimal union wage can be read off the marginal revenue product curve.

Correct AnswerverifiedShow Answer

Typical goals of a labor union in the United States include

Correct AnswerverifiedShow Answer

Suppose a union collects dues at 1 percent of the total wage bill.Maximum dues (and maximum total labor cost) would be achieved by hiring the amount of labor where

Correct AnswerverifiedShow Answer

What is a union shop,and what is its purpose?

Correct AnswerverifiedA union shop is an employment situation ...View AnswerShow Answer

The desired level of union employment occurs where the market wage curve intersects the labor supply curve.

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When a strike or a lockout occurs,

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If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11^th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11^th worker is

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Refer to Figure 31.3 for a competitive labor market. A shift in labor supply from S₁ to S₂ could be caused by:.

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A union shop is an employment situation ...
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