Question 1

The Taft-Hartley Act allowed states the right to

Accepted Answer

A)   check into the past of prospective employees before they were hired.
B)   prosecute labor union bosses who did not obey the labor practices deemed reasonable by state authorities.
C)   pass right-to-work laws.
D)   b and c
E)   none of the above

Question 2

Which of the following is not consistent with the view of labor unions as a collective voice?

Accepted Answer

A)   Unions reduce job exiting.
B)   Labor productivity declines as a result of labor unions
C)   The worker turnover rate is reduced by labor unions.
D)   Workers feel more secure in their jobs as a result of labor unions. B

Question 3

Some economists contend that the National Collegiate Athletic Association (NCAA)imposes its rules and regulations to keep college sports nonprofessional and in relatively high demand.

Accepted Answer

A) True 
 B)False

Question 4

A closed shop is an organization

Accepted Answer

A)   that is closed on holidays.
B)   in which an employee must belong to the union before he or she can work.
C)   that does not require workers to be union members in order to be hired, but does require them to join the union within a certain period of time after becoming employed.
D)   set up by the federal government to train ex-convicts to become productive workers.
E)   none of the above

Question 5

A labor union undertakes a training program for its members.The objective of the training program is to

Accepted Answer

A)   increase substitute factor prices.
B)   increase the marginal physical product of its members and therefore increase the demand for their services.
C)   reduce the availability of substitutes for the product it produces.
D)   lower the supply of its labor.
E)   none of the above

Question 6

To lower the elasticity of demand for labor,a labor union might attempt to

Accepted Answer

A)   decrease the availability of substitutes for the products union workers produce.
B)   increase the availability of substitutes for the products union workers produce.
C)   increase the availability of substitute factors for union labor.
D)   a and c
E)   b and c

Question 7

The marginal factor cost of labor for a monopsonist is

Accepted Answer

A)   equal to the wage rate because if the monopsonist wants to hire another worker, it can do so at the old wage rate.
B)   less than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers.
C)   less than the wage rate because if the monopsonist wants to hire another worker, it has to lower the wage rate paid to all workers.
D)   greater than the wage rate because if the monopsonist wants to hire another worker, it has to raise the wage rate paid to all workers.

Question 8

If a union seeks to maximize the total wage bill received by its members,then it

Accepted Answer

A)   should seek to establish the highest possible wage rate.
B)   should seek to establish the lowest possible wage rate.
C)   will find that this cannot be done under any circumstances.
D)   none of the above

Question 9

Exhibit 28-l
 1,D2,D3,and D4.Which provides the most pronounced wage-employment tradeoff? A)  D1 B)  D2 C)  D3 D)  D4" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 28-l.Four demand curves for labor are displayed: D1,D2,D3,and D4.Which provides the most pronounced wage-employment tradeoff?

Accepted Answer

A)   D1
B)   D2
C)   D3
D)   D4 D

Question 10

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the __________ the demand for the product labor produces,the __________labor and the __________ wages will be,ceteris paribus.

Accepted Answer

A)   higher; greater the supply of; lower
B)   higher; lower the demand for; higher
C)   higher; higher the demand for; higher
D)   lower; higher the demand for; higher

Question 11

The closed shop was prohibited by the

Accepted Answer

A)   Norris-LaGuardia Act.
B)   Clayton Act.
C)   Wagner Act.
D)   Taft-Hartley Act.
E)   none of the above

Question 12

The Taft-Hartley Act allowed the federal government laws regulating the formation of unions to take precedence over (override)union laws enacted by the individual states.

Accepted Answer

A) True 
 B)False

Question 13

Unions generally call for __________ the barriers against foreign trade,as a way of __________ the elasticity of demand for union labor.

Accepted Answer

A)   lowering; increasing
B)   lowering; decreasing
C)   raising; increasing
D)   raising; decreasing D

Question 14

In collective bargaining,a labor union

Accepted Answer

A)   discusses the job description of each member with the firm the member is employed by.
B)   bargains with management on behalf of all its members.
C)   usually tries to get each of its members to join a training program that can increase his or her productivity.
D)   b and c
E)   a, b, and c

Question 15

Exhibit 28-8
 1 to Q2. B)  increase employment from Q3 to Q4. C)  decrease employment from Q5 to Q2. D)  decrease employment from Q5 to Q4." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 28-8.An effective price floor set at W? would

Accepted Answer

A)   increase employment from Q1 to Q2.
B)   increase employment from Q3 to Q4.
C)   decrease employment from Q5 to Q2.
D)   decrease employment from Q5 to Q4.

Question 16

Exhibit 28-12
 
-Refer to Exhibit 28-12.As the firm increases employment from 3 to 4 workers,its marginal factor cost (MFC) is

Accepted Answer

A)   $7.50.
B)   $26.
C)   $48.
D)   $13.

Question 17

To increase the demand for union labor,a labor union might attempt to

Accepted Answer

A)   increase the demand for the products produced by union labor.
B)   decrease substitute factor prices.
C)   decrease the marginal physical product productivity of union labor.
D)   a and b
E)   all of the above

Question 18

The lower the elasticity of demand for labor,

Accepted Answer

A)   the larger the cutback in labor for a given wage increase.
B)   the smaller the cutback in labor for a given wage increase.
C)   the higher the wage rate that a labor union receives for its membership.
D)   the lower the wage rate that a labor union receives for its membership.
E)   the more members of a given union.

Question 19

Unions provide training programs in an attempt to increase the marginal physical product of union labor,thus shifting the union demand for labor curve rightward.

Accepted Answer

A) True 
 B)False

Question 20

Under the traditional view of unions,unionization leads to __________ prices because unions __________.

Accepted Answer

A)   higher; have a negative impact on the productivity of the workers
B)   lower; have a positive impact on the productivity of the workers
C)   stable; demand long and stable wage contracts from their employers
D)   none of the above

Exam 28: Wages,Unions,and Labor

The Taft-Hartley Act allowed states the right to

Correct AnswerverifiedShow Answer

Which of the following is not consistent with the view of labor unions as a collective voice?

Correct AnswerverifiedB

Some economists contend that the National Collegiate Athletic Association (NCAA)imposes its rules and regulations to keep college sports nonprofessional and in relatively high demand.

Correct AnswerverifiedShow Answer

A closed shop is an organization

Correct AnswerverifiedShow Answer

A labor union undertakes a training program for its members.The objective of the training program is to

Correct AnswerverifiedShow Answer

To lower the elasticity of demand for labor,a labor union might attempt to

Correct AnswerverifiedShow Answer

The marginal factor cost of labor for a monopsonist is

Correct AnswerverifiedShow Answer

If a union seeks to maximize the total wage bill received by its members,then it

Correct AnswerverifiedShow Answer

Exhibit 28-l -Refer to Exhibit 28-l.Four demand curves for labor are displayed: D1,D2,D3,and D4.Which provides the most pronounced wage-employment tradeoff?

Correct AnswerverifiedD

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the __________ the demand for the product labor produces,the __________labor and the __________ wages will be,ceteris paribus.

Correct AnswerverifiedShow Answer

The closed shop was prohibited by the

Correct AnswerverifiedShow Answer

The Taft-Hartley Act allowed the federal government laws regulating the formation of unions to take precedence over (override)union laws enacted by the individual states.

Correct AnswerverifiedShow Answer

Unions generally call for __________ the barriers against foreign trade,as a way of __________ the elasticity of demand for union labor.

Correct AnswerverifiedD

In collective bargaining,a labor union

Correct AnswerverifiedShow Answer

Exhibit 28-8 -Refer to Exhibit 28-8.An effective price floor set at W? would

Correct AnswerverifiedShow Answer

Exhibit 28-12 -Refer to Exhibit 28-12.As the firm increases employment from 3 to 4 workers,its marginal factor cost (MFC) is

Correct AnswerverifiedShow Answer

To increase the demand for union labor,a labor union might attempt to

Correct AnswerverifiedShow Answer

The lower the elasticity of demand for labor,

Correct AnswerverifiedShow Answer

Unions provide training programs in an attempt to increase the marginal physical product of union labor,thus shifting the union demand for labor curve rightward.

Correct AnswerverifiedShow Answer

Under the traditional view of unions,unionization leads to __________ prices because unions __________.

Correct AnswerverifiedShow Answer

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B

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Exhibit 28-l -Refer to Exhibit 28-l.Four demand curves for labor are displayed: D₁,D₂,D₃,and D₄.Which provides the most pronounced wage-employment tradeoff?

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D

Sometimes labor unions try to increase the demand for the product they produce.They do so because the demand for labor is derived; and the the demand for the product labor produces,the labor and the __ wages will be,ceteris paribus.

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Unions generally call for the barriers against foreign trade,as a way of the elasticity of demand for union labor.

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D

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Under the traditional view of unions,unionization leads to prices because unions .

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