Microeconomics- Chapter 15

. In recent years, the U.S. labor market has experienced a __________ in the earnings gap between men and women. One of the main factors behind this is ____________________ . A. big decline; men have steadily been less productive and their wages have fallen B. decline; women's' career focus and rewards gained with top-level job expertise C. increase; women are getting married and having children earlier in life D. big increase; an increase in gender-based discrimination in labor markets

B. decline; women's' career focus and rewards gained with top-level job expertise

The Taft-Hartley Act made the legal climate ____________________ , and union membership levels ___________________ . A. more encouraging to women seeking to unionize; increased B. less encouraging to union movements; soon started declining C. friendlier to blacks seeking to form unions; increased sharply D. less friendly for firefighters wanting to unionize; stagnated.

B. less encouraging to union movements; soon started declining

With regard to labor unions, which of the following is an accurate statement? A. percentage of members is higher for women than men B. membership is lower for agriculture or service-oriented jobs C. membership is lower in government and manufacturing D. membership is higher for blacks or Hispanics than for whites

B. membership is lower for agriculture or service-oriented jobs

If U.S. immigration consists of mainly low-skilled workers, then an increase in immigration __________ the wages of low-skilled workers. A. will increase B. will reduce C. may increase or reduce D. will not affect

B. will reduce

If an economist were to disregard unionized government employees, then current U.S. labor market statistics would show that A. 10% of the workers employed by private firms work for a union. B. 98% of the workers employed by private firms aren't unionized. C. 8% of the workers employed by private firms work for a union. D. 80% of the workers employed by private firms aren't unionized.

C. 8% of the workers employed by private firms work for a union.

Since 1960, the earnings gap between men and women in the U.S. labor market has A. steadily risen. B. been completely eliminated. C. continued to narrow. D. increased throughout the 1970s.

C. continued to narrow.

Say the average increase in pay for non-union workers in 2011 is 2% across the U.S. If a workers' union successfully negotiates a 3 year collective agreement that provides a 4.5% raise in 2011, and a 4.3% raise in 2013, then the for-profit employer will typically A. begin to fire its older union workers. B. replace union workers with non-union workers. C. curtail expansion of labor as a trade-off. D. replace union workers with foreign workers.

C. curtail expansion of labor as a trade-off.

Of all the available policies to reduce discrimination by race and gender, the most costly is likely to be: A. affirmative action outreach B. affirmative action goals and quotas C. laws prohibiting discrimination D. improved educational opportunities

D. improved educational opportunities

There is little evidence that countries with high union membership _______________________________, and also very little evidence that the reduction in U.S. union membership over time has brought ___________________ for the U.S. economy as a whole. A. tend to suffer economic damage as a result; broad benefits or costs B. have economically benefited; economics benefits C. have broader benefits as a result; economic damage D. tend to enjoy economic benefits as a result; harmful economic costs

A. tend to suffer economic damage as a result; broad benefits or costs

Factors that contributed to the current level of the earnings gap in the U.S. labor market between black and white workers include: A. the combination of changes in law and changes in social attitudes B. changes in production techniques made white workers unproductive C. a large decline in the average education levels for white workers D. a vast increase in the number of well-educated black workers and a

A. the combination of changes in law and changes in social attitudes

The percentage of workers belonging to a union is higher in the A. 45-64 age range. B. 25-45 age range. C. 40 -65 age range. D. 30-50 age range.

A. 45-64 age range.

A labor union seeks to __________________ between employers and workers. A. change the balance of negotiations B. change the economic balance C. force employers to deal with individual workers D. lobby government for changes

A. change the balance of negotiations

Negotiations between unions and a firm or firms is called __________________ . A. collective bargaining B. cooperative bargaining C. united bargaining D. organized bargaining

A. collective bargaining

As a result of the American workers' ability to sell their labor though a union, profit-making firms must pay wages A. exceeding the equilibrium wage those firms would otherwise have selected. B. at the intersection of the demand and supply labor curves. C. below the equilibrium wage level those firms would otherwise be able to pay. D. that match the preferred equilibrium wage these firms have selected.

A. exceeding the equilibrium wage those firms would otherwise have selected.

Which of the following industries is the least likely to employ a unionized labor force? A. finance, insurance and real estate B. transportation and public utilities C. government D. precision, production, and repair

A. finance, insurance and real estate

What Act was passed to allow American workers to opt out of the union in their workplace? A. Labor Relations Act of 1947 B. Taft-Hartley Act of 1947 C. National Labor-Management Relations Act of 1935 D. National Workers' Rights Act of 1940

B. Taft-Hartley Act of 1947

Of the many available policies to reduce discrimination by race and gender in the U.S. labor market, the most controversial is likely to be A. laws prohibiting discrimination B. affirmative action goals and quotas C. increased access to child care D. improved educational opportunities

B. affirmative action goals and quotas

Members of labor unions are able to use their ________________ to achieve better economic outcomes. A. cooperative nature B. bargaining power C. secret ballot votes D. excess supply of labor

B. bargaining power

In the United States, the share of wage and salary for workers who belong to unions A. declined sharply in the 1930s and 1940s. B. rose sharply in the 1930s and 1940s. C. rose sharply in the 1950s and 1960s. D. declined sharply in the 1940s and 1950s.

B. rose sharply in the 1930s and 1940s.

In the U.S. manufacturing sector, unionized jobs have _________________ in recent years. A. increased modestly B. have trended up C. have trended down D. declined dramatically

C. have trended down

The study of unions and their economic effects needs to focus on ___________________, not on _____________ . A. economic benefits; economic harms B. economic harms; economic benefits C. specific situations; generalities D. generalities; specific situations

C. specific situations; generalities

If immigration consists of mainly high-skilled workers, then a(n) ________ in immigration will ________ the wages of high-skilled workers. A. increase, increase B. increase, not affect C. decrease, decrease D. decrease, increase

D. decrease, increase

From a competitive firms' point of view, the key question regarding the higher wages paid to union workers is whether the higher wage level A. is matched by non-union producers. B. can be passed on to its costumers. C. leads to workers with more experience. D. is matched with higher productivity.

D. is matched with higher productivity.

The U.S. government strongly encouraged unions to be formed in the early 1940s because they held the view that unions would help to A. co-ordinate the all-out production efforts needed during World War II. B. develop uniform procedures for forming unions across the country. C. raise the standard of living of the American people during World War II. D. end the racial discrimination that was prevalent in American workplaces.

A. co-ordinate the all-out production efforts needed during World War II.

A _____________ is an organization of workers that negotiates with employers as a group over wages and working conditions. A. affirmative union B. collective union C. labor union D. cooperative union

C. labor union

The presence of organized labor in the U.S. labor market creates a situation that resembles a A. government acting as a negotiator between workers and employers. B. union official acting like lawyers negotiating legal agreements. C. for profit-firm acting cooperatively to reduce unequal wealth distribution. D. union acting as a monopoly in selling labor to firms.

A. government acting as a negotiator between workers and employers.

The proportion of workers in a number of the world's high-income economies who belong to unions, when compared to unionized workers in the U.S., is A. very high. B. very low. C. about the same, compared to Canada. D. high, compared to France and Spain.

A. very high

The earnings gap in the U.S. labor market between black and white workers __________ in the 1960s and 1970s, but, since 1980, the gap _______________. A. rose substantially; has not changed much B. fell substantially; is pretty well unchanged C. rose substantially, has declined substantially D. fell substantially, has substantially increased

B. fell substantially; is pretty well unchanged

There is sufficient evidence showing that union workers in the manufacturing sector generally A. tend to hold those jobs for less time than non-union workers. B. have higher productivity than non-union workers. C. have fewer years of experience than non-union workers, D. have lower productivity than non-union workers

B. have higher productivity than non-union workers.

Which of the following arguments would most likely be presented by a critic of labor unions? A. unions oppose suppression of wages by profit-seeking firms B. unions have a tendency to gain as much as possible in the long-term C. unions can prohibit economic growth if new technology is blocked D. unions have a higher percentage of women members than men

C. unions can prohibit economic growth if new technology is blocked

Labor unions can: A. be a primary line of defense against suppressed wage levels. B. be controversial in a for-profit market driven economy. C. bring better economic gains for their memberships. D. protect workers' pensions and all of the above.

D. protect workers' pensions and all of the above.

In the Unites States, worker membership in labor unions has been A. steadily growing for 50 years. B. steadily growing in the last decade. C. steadily growing due to immigration. D. steadily declining for 50 years.

D. steadily declining for 50 years.

Although the earnings gap between men and women in the U.S. labor market ___________ in the 1970s, it has _________________________ . A. did not change much; been declining since 1980 B. did not change much; been on the increase since 1980 C. increased, ; been declining since 1980 D. declined, been increasing since 1980

A. did not change much; been declining since 1980

Any government policy that provides __________________ and _________________ deserves to be looked at twice, or even three times. A. gains to those with higher incomes; imposes costs on those with lower incomes B. gains to those with lower incomes; imposes costs on those with higher incomes C. public schooling; welfare benefits D. local tax revenue; state tax revenue

A. gains to those with higher incomes; imposes costs on those with lower incomes

__________________ involves active efforts to improve the job opportunities or outcomes of minority groups or women. A. Meritorious action B. Affirmative action C. Anti-discriminative action D. Aligned action

B. Affirmative action

Once the U.S. government opened its domestic markets to international trade, the competition from imported cars, steel, and other products caused demand for similar U.S. goods to A. continually increase leading to an overall increase in union membership. B. fall, leading to lower output, fewer workers, and an overall decline in union membership. C. decline, causing workers to call upon governments to pass indexed wage protection laws. D. rise, but laws made it difficult for new workers to become union members.

B. fall, leading to lower output, fewer workers, and an overall decline in union membership.

In the United States, the number of unionized government jobs has __________________. A. increased dramatically B. increased modestly C. modestly declined D. dramatically declined

B. increased modestly

Union members earn ______________ than non-union members, even after adjusting for factors such as _____________________________ . A. about 10% more; racial discrimination and immigration. B. about the same; union dues and cost of lawyers for collective bargaining. C. about 20% more; years of work experience and education level. D. about 30% more; healthcare and retirement benefits.

C. about 20% more; years of work experience and education level.

Union membership has ____________ in the United States because of _________________________ . A. risen; the shift from service to manufacturing industries B. risen; increased global trade from U.S. manufacturers C. fallen; laws enacted making it more difficult to unionize D. fallen; laws making workplace protection more difficult

C. fallen; laws enacted making it more difficult to unionize

The earnings gap in the U.S. labor market between black and white workers ___________________. A. was completely eliminated by the end of the 1960s B. has not diminished at all since 1960 C. has diminished since 1960, but a gap still remains D. existed in the 1960s but was reversed throughout the 1970s

C. has diminished since 1960, but a gap still remains

Measured in absolute numbers, the level of immigration during the 1990s into the United States was _________ compared with the levels of previous decades. When considered as a percentage of the population at the time, the level of immigration into the United States during the 1990s was ________ than the levels experienced during the earlier decades of the twentieth century. A. lower, higher B. lower, lower C. higher, lower D. higher, higher

C. higher, lower

The costs that immigrants impose on governments arise mainly in terms of _________, which are primarily the responsibilities of the _________ government(s). A. administration, state and local B. administration, federal C. public schools and healthcare, state and local D. public schools and healthcare, federal

C. public schools and healthcare, state and local

If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized workers' pensions required under the collective agreement then attempts to reduce workers' pension entitlements, the union members will most likely A. enter into collective bargaining. B. be unable to defend against this action. C. take defensive strike action. D. receive higher wages instead.

C. take defensive strike action.

Discriminatory impulses in the labor market can emerge at a number of levels: A. among managers B. among workers C. among customers D. all of the above

D. all of the above

The existence of labor unions forces employers to deal with workers ________________________ . A. individually, rather than as a collective B. cooperatively, rather than uncooperatively C. equitably, rather than inequitably D. collectively, rather than as individuals

D. collectively, rather than as individuals

Unions can be perceived as being economically harmful when they A. strike infrequently B. successfully negotiate higher wages C. support modernization and new technology D. none of the above

D. none of the above

In order to provide its workforce with an alternative to forming a union, the U.S. government passed laws about work conditions, namely, A. minimum wage and employment insurance. B. regulation of workers' pensions. C. paid parental leave for workers. D. overtime and all of the above.

D. overtime and all of the above.

Which of the following is most likely to have a large union membership that experiences little import competition? A. telemarketing B. lawyers in the legal services sector C. the real estate industry D. police services

D. police services

If unions help workers secure pension benefits, so that those workers are less dependent on government social assistance after their retirement, then A. the for-profit unionized industries will be less productive. B. the for-profit unionized industries will be harmed. C. the union is economically harmful. D. the union is economically beneficial.

D. the union is economically beneficial.

Discrimination in labor markets arises if _________________________, as measured by education, receive different pay because of their _______________________ . A. workers with different skill levels; race or gender B. workers with no experience; race or marital status C. workers with work experience; race or marital status D. workers with the same skill levels; race or gender

D. workers with the same skill levels; race or gender