Question 1

Because a union is a form of monopoly, it must be concerned about the ________ slope of the demand curve for labor.

Accepted Answer

A)   vertical
B)   horizontal
C)   downward
D)   upward

Question 2

Discuss how unions affect prices indirectly.

Accepted Answer

Unions affect prices indirectly through ...

Question 3

The labor share of total income is the proportion of total income earned by

Accepted Answer

A)   The unionized workforce.
B)   The nonunionized workforce.
C)   All workers.
D)   All households.

Question 4

The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.

Accepted Answer

A) True 
 B)False

Question 5

The willingness of firms to hire labor is represented by the market labor demand curve.

Accepted Answer

A) True 
 B)False

Question 6

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.
D)   Flourish in industries, while craft unions dominate in smaller craft production.

Question 7

Workers with a particular skill are represented by

Accepted Answer

A)   Craft unions.
B)   Skill unions.
C)   Market unions.
D)   Industrial unions.

Question 8

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.
D)   More benefits, higher pay, and less control over market labor supply.

Question 9

Both the unionization and concentration ratios are measures of market power.

Accepted Answer

A) True 
 B)False

Question 10

What are the competitive equilibrium wage and employment level in Figure 31.1?

Accepted Answer

A)   $8; 10 workers.
B)   $5; 16 workers.
C)   $4; 13 workers.
D)   $11; 32 workers.

Question 11

Which of the following is an example of an industrial union?

Accepted Answer

A)   The International Brotherhood of Electrical Workers.
B)   The Carpenters Union.
C)   The United Auto Workers.
D)   The AFL-CIO.

Question 12

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33rd worker is

Accepted Answer

A)   $273.
B)   $3,667.
C)   $121,000.
D)   $9,000.

Question 13

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 14

In the last 10 years, private union membership has

Accepted Answer

A)   Decreased, while public union membership has increased.
B)   Increased along with public union membership.
C)   Decreased along with public union membership.
D)   Increased, while public union membership has decreased.

Question 15

Wage nate  (dollars per hour)   Labor demanded  (workers)  $260222184146108Total laborcost-hourlyMarginal wage(dollars per hour) (dollars per worker) −....−−−−−−−−\begin{array}{cc}\begin{array}{cc}\\begin{array}{c}	ext { Wage nate } \	ext { (dollars per hour)  }\end{array} & \begin{array}{c}	ext { Labor demanded } \	ext { (workers)  }\end{array} \\hline \$ 26 & 0 \22 & 2 \18 & 4 \14 & 6 \10 & 8\end{array}\begin{array}{cc}	ext{Total labor}\	ext{cost-hourly}&	ext{Marginal wage}\	ext{(dollars per hour) }&	ext{(dollars per worker) }\\hline-&....\-&-\-&-\-&-\-&-\end{array}\end{array} Wage nate  (dollars per hour)  ​$2622181410​ Labor demanded  (workers)  ​02468​​Total laborcost-hourly(dollars per hour) −−−−−​Marginal wage(dollars per worker) ....−−−−​​​ 
  Table 31.1	ext { Table } 31.1 Table 31.1  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.Assume the union collects dues of 1 percent of the total wage bill.At what wage in Table 31.1 would the union maximize the amount of dues it collects?

Accepted Answer

A)   $10 per hour.
B)   $14 per hour.
C)   $18 per hour.
D)   $22 per hour.

Question 16

From an economic perspective, the efforts of professional football, baseball, and basketball players in the United States to win the right to become free agents was really an effort to

Accepted Answer

A)   Raise wages to the level of the players'MRP.
B)   Raise wages to competitive levels.
C)   Reduce the supply of professional players and thus increase wages.
D)   Raise wages above the level of the players'MRP.

Question 17

Walmart, the largest employer in the United States, employs

Accepted Answer

A)   Approximately 2 percent of the labor force.
B)   Less than 1 percent of the labor force.
C)   More than 15 percent of the labor force.
D)   Approximately 10 percent of the labor force.

Question 18

The market labor supply curve is downward-sloping.

Accepted Answer

A) True 
 B)False

Question 19

Workers who organize themselves along industry lines are represented by

Accepted Answer

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

Question 20

The unionization rate in the United States has been

Accepted Answer

A)   Increasing for the last 5 years.
B)   Declining for approximately 30 years.
C)   Declining for approximately 15 years.
D)   Declining for over 40 years.

Exam 17: Labor Unions

Both the unionization and concentration ratios are measures of market power.

Correct Answer
verified

Correct Answer
verified

Workers with a particular skill are represented by

Correct Answer
verified

The labor share of total income is the proportion of total income earned by

Correct Answer
verified

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

Correct Answer
verified

The unionization rate in the United States has been

Correct Answer
verified

Walmart, the largest employer in the United States, employs

Correct Answer
verified

The willingness of firms to hire labor is represented by the market labor demand curve.

Correct Answer
verified

What are the competitive equilibrium wage and employment level in Figure 31.1?

Correct Answer
verified

Typical goals of a labor union in the United States include

Correct Answer
verified

Discuss how unions affect prices indirectly.

Correct Answer
verified
Unions affect prices indirectly through ...
View Answer

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33^rd worker is

Correct Answer
verified

Which of the following is an example of an industrial union?

Correct Answer
verified

In the last 10 years, private union membership has

Correct Answer
verified

The market labor supply curve is downward-sloping.

Correct Answer
verified

From an economic perspective, the efforts of professional football, baseball, and basketball players in the United States to win the right to become free agents was really an effort to

Correct Answer
verified

Because a union is a form of monopoly, it must be concerned about the ________ slope of the demand curve for labor.

Correct Answer
verified

Workers who organize themselves along industry lines are represented by

Correct Answer
verified

The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.

Correct Answer
verified

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

Correct Answer
verified

Exam 17: Labor Unions

Both the unionization and concentration ratios are measures of market power.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Workers with a particular skill are represented by

Correct AnswerverifiedShow Answer

The labor share of total income is the proportion of total income earned by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The unionization rate in the United States has been

Correct AnswerverifiedShow Answer

Walmart, the largest employer in the United States, employs

Correct AnswerverifiedShow Answer

The willingness of firms to hire labor is represented by the market labor demand curve.

Correct AnswerverifiedShow Answer

What are the competitive equilibrium wage and employment level in Figure 31.1?

Correct AnswerverifiedShow Answer

Typical goals of a labor union in the United States include

Correct AnswerverifiedShow Answer

Discuss how unions affect prices indirectly.

Correct AnswerverifiedUnions affect prices indirectly through ...View AnswerShow Answer

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33rd worker is

Correct AnswerverifiedShow Answer

Which of the following is an example of an industrial union?

Correct AnswerverifiedShow Answer

In the last 10 years, private union membership has

Correct AnswerverifiedShow Answer

The market labor supply curve is downward-sloping.

Correct AnswerverifiedShow Answer

From an economic perspective, the efforts of professional football, baseball, and basketball players in the United States to win the right to become free agents was really an effort to

Correct AnswerverifiedShow Answer

Because a union is a form of monopoly, it must be concerned about the ________ slope of the demand curve for labor.

Correct AnswerverifiedShow Answer

Workers who organize themselves along industry lines are represented by

Correct AnswerverifiedShow Answer

The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Unions affect prices indirectly through ...
View Answer

If a firm increases the number of workers from 32 to 33 and the total wages paid rise from $112,000 to $121,000, the marginal wage of the 33^rd worker is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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