chapter 29

Which of the following is NOT a union wage and employment strategy?

minimizing the adjusted gross income of non-members

A firm that is a monopolist in the output market and a monopsonist in the input market

will hire less labor and pay a lower wage compared to the perfectly competitive case.

A labor union composed of workers in the same occupation is called

a craft union

In recent decades, the union-nonunion hourly wage differential has

fallen significantly.

The first type of labor unions that emerged in the United States were

craft unions.

A monopsonistic employer will pay a wage rate

less than the labor's MRP.

In an analytical sense, unions can be thought of as

setters of minimum wages.

A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is

$15.10

The Congress of Industrial Organization (CIO) was founded by

John L. Lewis

A profit-maximizing monopsonist will hire workers up to the point at which

MRP = MFC.

Which piece of legislation allowed states to pass right-to-work laws?

Taft-Hartley Act

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

Taft-Hartley Act.

Which of the following best describes the effects of unions in the United States today?

The average union worker works fewer hours and earns a lower annual income than the average nonunion worker.

Which statement is most TRUE about the impact of unions on wage levels in the United States?

Unions have tended to increase the hourly wage rates of their members relative to nonunion workers by an average of about $3.20.

Which is NOT one of the potential benefits of labor unions?

Unions may reduce a company's profits.

Suppose that under its collective bargaining agreement, the XYZ Co. can only hire union members in good standing at the time of hiring. XYZ Co. is

a closed shop.

The percentage of U.S. workers in the private sector who belong to unions is currently

approximately 8 percent

Featherbedding means that

employers are forced to hire more workers than they want to.

Unions face a trade-off between higher wages and

fewer available positions

Under monopsony, marginal factor cost is

greater than the wage rate.

Which of the following is LEAST likely to be a reason for the decline in U.S. union membership?

increases in the work force of the public sector

The monopsonist will employ labor to the point at which the

marginal factor cost equals the marginal revenue product of labor.

If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be

numerically equal to 1.

The Taft-Hartley Act

permits states to pass right-to-work laws.

The Wagner Act

permitted unions to engage in collective bargaining.

Other things equal, granting unemployment benefits or welfare benefits to striking workers

reduces the costs of a strike to workers and will increase their willingness to strike

If the labor supply curve faced by a firm is rising, the marginal factor cost curve of labor must be

rising and above the supply curve.

The Taft-Hartley Act made all of the following illegal EXCEPT

the Congress of Industrial Organizations.

The main difference between a monopsonist and a competitive buyer of labor is that

the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers.

A monopsonist that wants to hire more labor must pay more for the new labor than it is currently paying and increase the wage rate of all existing employees because

the supply of labor is upward sloping.

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

there is a shortage of jobs.