Econ 5 Chapter 17

The unionized share of the labor force today is about _____ of the 35% "high-water mark" it reached in 1950. 1/5 1/3 1/2

1/3

Unions did not become a significant force in American labor markets until the 1800s. 1900s. 2000s.

1900s.

Which of the following is a real-world example of a pure monopsony? The IT industry in southern California called Silicon Valley A small town with only four convenience stores A paper mill that is the only major employer in a small town An Ivy League college in a major city

A paper mill that is the only major employer in a small town

When a union withholds labor from an employer, a [strike] is said to occur; when an employer withholds jobs (and paychecks) from a union, a [lockout] is taking place.

Blank 1: strike Blank 2: lockout

Which three of the following are the prime phenomena causing the decline in unionization? (Make three choices.) A lengthy series of anti-union Supreme Court decisions. Extensive corruption within unions that has driven members away. Corporate downsizing and the relatively fast growth of smaller companies. The increase in global competition. The relative decline in manufacturing activity.

Corporate downsizing and the relatively fast growth of smaller companies. The increase in global competition. The relative decline in manufacturing activity.

[craft] unions represent workers with a particular skill.

Craft

True or false: In the United States, nonunion members have a 15-20% wage advantage over union members. True False

False

Which of the following are among the objectives a union typically pursues? (Select all that apply.) More generous benefits. Higher wages. Better job security. Nationalization of industries. Improved working conditions. Control of production.

More generous benefits. Higher wages. Better job security. Improved working conditions.

The fundamental source of negotiating power is the ability to withhold labor or jobs. strength of demand for the product being produced. ability to reduce supply of other inputs besides labor.

ability to withhold labor or jobs.

A [bilateral] monopoly exists when there is one buyer and one seller.

bilateral

A market with only one buyer (a monopsonist) and one seller (a monopoly) is a competitive market. bilateral monopoly. duopoly.

bilateral monopoly.

Most of the rise in labor's share of total income over the past century is attributable to altruistic leadership in American corporations. the Democrat Party's nearly continuous control of the U.S. Congress. changes in the structure of the economy. unionization and other labor-organizing efforts.

changes in the structure of the economy.

Which of the following are causes or issues that unions have fought for or promoted? (Select all that apply.) civil rights legislation minimum wage laws the privatization of Social Security work and safety rules

civil rights legislation minimum wage laws work and safety rules

Labor markets with significant power on both sides are _______ in the United States. common illegal uncommon

common

Each individual firm will maximize its profits or minimize losses by hiring a specific type of labor up to the point where the labor demand curve is ______. equal to the labor supply curve less than the marginal wage greater than the labor supply curve less than the minimum wage

equal to the labor supply curve

The point at which the market labor demand curve and the market labor supply curve intersect determines the ______ wage rate and level of labor ______ in a competitive labor market. equilibrium; employed equilibrium; unemployed monopsonistic; employed competitive; unemployed

equilibrium; employed

Union membership surged in the years immediately after the Great Depression trough (1933) thanks to the impetus from foreign labor leaders. federal legislation. the National Governor's Association.

federal legislation.

The Great Depression (particularly the period 1929 to 1933) had a _____ effect on union membership. benign beneficial harmful

harmful

Unions consider: only the number or workers employed and not the wage rate how the wage rate compares to an hour of leisure how hiring one more worker will impact wages of all workers

how hiring one more worker will impact wages of all workers

Market power in labor markets is likely to be more effective when unions are not present. in local labor markets. in national labor markets.

in local labor markets.

Unions can ______ wage rates by ______ the quantity supplied of labor. increase; increase decrease; reducing hold; increasing increase; reducing decrease; increasing

increase; reducing decrease; increasing

Workers in a particular industry (e.g., steel) are represented by _____ unions. immigration craft industrial exclusive

industrial

Recently, membership in U.S. unions has moved away from _____ unions toward _____ unions. service workers, craft service worker, industrial craft, industrial industrial, service workers

industrial, service workers

The willingness and ability to work specific amounts of time at alternative wage rates in a given time period is called: labor supply labor demand unemployment equilibrium wage rate

labor supply

Any job seeker who finds the equilibrium wage to be unacceptably _____ will be _____. high; unemployed high; employed low; unemployed

low; unemployed

The [marginal] wage is the change in total wages paid (to all workers) when one more worker is hired.

marginal

The change in total costs that results from a one-unit increase in the quantity of a factor employed is the [marginal] factor cost.

marginal

The change in total costs that results from a one-unit increase in the quantity of a factor employed is the marginal factor cost. total factor cost. labor demand. labor productivity.

marginal factor cost.

In a (monopoly/monopsony), there is only a single buyer of a particular type of labor.

monopsony

Market power in labor markets is likely to be more effective in national labor markets. unaffected by the scope of the labor market. more effective in local labor markets.

more effective in local labor markets.

The _____ market power a firm possesses in product and labor markets, the _____ it will be for it to protect itself by passing on higher wages to its customers. more; tougher more; easier less; easier less; tougher

more; easier

The strike benefits paid to workers are ___ comparable to the wages they would otherwise have received. always rarely

rarely

When unions artificially restrict the supply of labor, wages paid to the union workers (rise/fall).

rise

Labor's share of total income during the last century has _______ because of the changing structure of the economy. fallen risen remain unchanged

risen

In recent years, the rate of unionization in the U.S. public sector has _____ the rate found in the private sector. achieved parity with risen far above continued to lag behind

risen far above

The general impact that unions have had on American institutions and the country's national welfare has been ______. sizable and largely positive negligible and ambiguous sizable and mostly negative

sizable and largely positive

Labor and management both _______ either a strike or a lockout. profit by suffer from benefit from are unaffected by

suffer from

The willingness and ability to work specific amounts of time at alternative wage rates in a given time period is called labor (demand/supply).

supply

To maintain an above-equilibrium wage, the union must be able to exercise some control over the labor _____ decisions of individual _____. supply, workers demand, firms

supply, workers

The marginal wage is ______. the change in total wages paid multiplied by the change in quantity of labor employed the change in quantity of labor employed divided by the change in total wages paid the change in total wages paid divided by the change in quantity of labor employed

the change in total wages paid divided by the change in quantity of labor employed

A union evaluates job offers on the basis of the collective interests of its leadership team the individual interests of some of its members the collective interests of its members

the collective interests of its members

Which of the following is a primary goal of a labor union? to increase insurance benefits to pursue special interests to increase vacation time to raise wage rates

to raise wage rates

Evidence suggests that (union/non-union) members in the United States, on average, achieve a 15-20% wage advantage over (union/non-union) workers.

union non-union

Which of the following contributed to the emergence of unions as a significant force in U.S. labor markets? (Select all that apply.) The growth of heavily populated commercial centers. The creation of free-trade areas. The domination of the Democrat Party in national politics. The emergence of large-scale manufacturing.

The growth of heavily populated commercial centers. The emergence of large-scale manufacturing.

Any price inflation resulting from unions and their desire for higher compensation would be of the _____ variety. demand-pull cost-push

cost-push

If firms subjected to rising union wages have limited market power, their profits and capital's share of income will likely (increase/decrease) over time.

decrease

Every firm will maximize its profits or minimize its losses by hiring a specific type of labor, up to the point where the labor [demand] curve is equal to the labor [supply] curve.

demand supply