Question 1

A plumbers' union is an example of

Accepted Answer

A)  an industrial union.
B)  a craft union.
C)  skilled workers union.
D)  auxiliary union.E) A) and C)
F) B) and C)

Question 2

Marginal factor cost is

Accepted Answer

A)  the change in total costs due to a one-unit change in the quantity of the good produced.
B)  the change in total costs due to a one-unit increase in the variable input.
C)  the change in the price of an input when an additional unit of the input is hired.
D)  the marginal cost of changing the rate of production in the long run.E) C) and D)
F) B) and C)

Question 3

A union-sponsored television campaign urging U.S. consumers to "Look for the union label" is designed to

Accepted Answer

A)  increase the productivity of union labor.
B)  increase the derived demand for union labor by shifting consumer preferences in favor of union-made goods.
C)  raise wages by restricting the supply of union workers.
D)  remind consumers that if they do not buy union-made goods, unions will strike.E) C) and D)
F) A) and D)

Question 4

The Wagner Act

Accepted Answer

A)  permitted unions to engage in collective bargaining.
B)  permitted states to pass right-to-work laws.
C)  restricted activities of heads of unions that were not beneficial to union members.
D)  mandates compulsory arbitration in some key industries.E) A) and D)
F) B) and D)

Question 5

The MFC curve

Accepted Answer

A)  lies below the labor supply curve, when the labor supply curve is upward sloping.
B)  lies above the labor supply curve, when the labor supply curve is upward sloping.
C)  is the labor supply curve.
D)  is parallel to the labor supply curve, when the labor supply curve is downward sloping.E) B) and C)
F) A) and B)

Question 6

The 1935 Act granting workers the right to form unions and bargain collectively is known as

Accepted Answer

A)  the National Labor Relations Act or Wagner Act.
B)  the Wheeler Act.
C)  the Taft-Hartley Act.
D)  the Modernization Act.E) A) and C)
F) A) and B)

Question 7

The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the

Accepted Answer

A)  Wagner Act.
B)  Landrum-Griffin Act.
C)  National Industrial Recovery Act.
D)  Taft-Hartley Act.E) C) and D)
F) A) and D)

Question 8

The attempt to force employers to use more labor than they otherwise would, or to force employers to use labor inefficiently, is known as

Accepted Answer

A)  a secondary boycott.
B)  a sympathy strike.
C)  a monopsony.
D)  featherbedding.E) B) and C)
F) A) and B)

Question 9

-According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?

Accepted Answer

A)  5
B)  6
C)  7
D)  8E) C) and D)
F) B) and D)

Question 10

A labor union that consists of workers from a particular industry is a(n)

Accepted Answer

A)  closed shop.
B)  industrial union.
C)  union shop.
D)  bilateral monopoly.E) A) and B)
F) B) and C)

Question 11

-Which of the following is the BEST example of a monopsonist?

Accepted Answer

A)  a household hiring a gardener
B)  a turnip farmer hiring seasonal help
C)  Hershey's Chocolate Factory in Hershey, PA
D)  Vinaka Coffee Shop in Carlsbad, CAE) B) and D)
F) None of the above

Question 12

Which of the following is one of the reasons for declining union membership in the United States?

Accepted Answer

A)  Much of the unskilled, nonunionized work in the United States is done by immigrant workers who are undocumented.
B)  The AFL-CIO merger and creation of the Change to Win Federation reduced competition among unions.
C)  The repeal of the Taft-Hartley Act.
D)  Labor force participation by women has decreased.E) A) and D)
F) C) and D)

Question 13

A closed shop is a

Accepted Answer

A)  strike by a union in sympathy with another union's strike or cause.
B)  dispute involving two or more unions over which should have control of a particular jurisdiction.
C)  business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired.
D)  legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.E) A) and B)
F) A) and C)

Question 14

The AFL and CIO merged because it was thought that

Accepted Answer

A)  organized labor would grow faster as a result.
B)  union pension funds would shrink as a result.
C)  strikes could be averted.
D)  managers would be more sympathetic to unions.E) A) and D)
F) A) and C)

Question 15

Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that

Accepted Answer

A)  unemployment of union workers must have increased.
B)  unemployment of nonunion workers must have increased.
C)  productivity of union workers must be greater than the productivity of nonunion workers.
D)  Any of the above are possible and we cannot tell which without having more information.E) A) and B)
F) C) and D)

Question 16

Unions face a trade-off between higher wages and

Accepted Answer

A)  fewer available positions.
B)  more available positions.
C)  equipment.
D)  none of the above.E) A) and B)
F) A) and C)

Question 17

The ultimate bargaining tool for unions is

Accepted Answer

A)  the strike.
B)  "labor's Magna Carta."
C)  the Taft-Hartley Act.
D)  the sympathy strike.E) A) and C)
F) All of the above

Question 18

Featherbedding refers to

Accepted Answer

A)  the practice of laying off union activists.
B)  increased international competition and its negative impact on trade unions.
C)  union leaders arguing for higher wages when they know that they will not become unemployed given their seniority.
D)  the practice of inducing a firm to use more than the cost-minimizing level of labor.E) A) and B)
F) C) and D)

Question 19

At the profit-maximizing level of employment, the monopsonist

Accepted Answer

A)  pays a wage equal to MRP.
B)  pays a wage greater than MRP.
C)  pays a wage less than MRP.
D)  pays a wage equal to MFC.E) B) and D)
F) All of the above

Question 20

-What is a monopsony and how does a monopsonistic firm determine the wage rate to pay its employees?

Accepted Answer

Monopsony is the situation when there is...

Exam 29: Unions and Labor Market Monopoly Power

Which of the following is one of the reasons for declining union membership in the United States?

Correct AnswerverifiedShow Answer

Featherbedding refers to

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The ultimate bargaining tool for unions is

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A labor union that consists of workers from a particular industry is a(n)

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A union-sponsored television campaign urging U.S. consumers to "Look for the union label" is designed to

Correct AnswerverifiedShow Answer

The president of the United States can obtain a court injunction that will stop a strike for an 80-day "cooling-off"period if the strike is expected to imperil national safety or health. This power is granted in the

Correct AnswerverifiedShow Answer

-Which of the following is the BEST example of a monopsonist?

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Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that

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The Wagner Act

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The MFC curve

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A plumbers' union is an example of

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Unions face a trade-off between higher wages and

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A closed shop is a

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The attempt to force employers to use more labor than they otherwise would, or to force employers to use labor inefficiently, is known as

Correct AnswerverifiedShow Answer

At the profit-maximizing level of employment, the monopsonist

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The AFL and CIO merged because it was thought that

Correct AnswerverifiedShow Answer

The 1935 Act granting workers the right to form unions and bargain collectively is known as

Correct AnswerverifiedShow Answer

-What is a monopsony and how does a monopsonistic firm determine the wage rate to pay its employees?

Correct AnswerverifiedMonopsony is the situation when there is...View AnswerShow Answer

Marginal factor cost is

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-According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?

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Monopsony is the situation when there is...
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