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209. A major function of the National Labor Relations Board is to
210. Which of the following is correct?
A. The federal government can delay any strike for 80 days.
211. Those who feel that unions positively affect productivity and efficiency argue that unions
are
D. "exit mechanisms" that accelerate labor turnover.
17-102
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Dif f i c u l t y :
02 Medium
Learning Objective: 17-09 (Appendix) Relate who belongs to U.S. unions, the basics of
collective bargaining, and the economic effects of unions.
Test Bank: I
Topi c :
Labor Unions and Their Impacts
212. By reducing labor turnover, unions may increase productivity because a lower turnover
rate
A. results in a less-experienced workforce.
213. Some economists claim that unions reduce economic efficiency by
A. providing a voice mechanism for workers.
214. Unions may increase productivity by
A. providing an exit mechanism for workers.
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D. providing a voice mechanism for workers.
215. Featherbedding refers to
A. a situation in which a union forces an employer to hire union workers in preference to
nonunion workers.
216. Available research suggests that the union wage advantage diminishes the national output
by
A. 15 percent.
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217. Suppose a worker feels unhappy with his job and consequently quits. This illustrates
A. the voice mechanism.
218.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of
labor. Relevant product markets are competitive. The two labor demand curves are identical.
Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in
each sector is Wn. If a union is formed in sector 1 and the union increases the wage rate from
Wn to Wu, then employment will
219.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of
labor. Relevant product markets are competitive. The two labor demand curves are identical.
Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in
each sector is Wn. The change in employment in sector 1 to which a Wn to Wu
union wage
increase gives rise will cause output in that sector to
A. decrease by A + B.
220.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of
labor. Relevant product markets are competitive. The two labor demand curves are identical.
Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in
each sector is Wn. If all the workers who lose their jobs in the union sector because of a Wn to
Wu union wage increase are reemployed in nonunion sector 2, output in that sector will
A. decrease by F + G.
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221.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of
labor. Relevant product markets are competitive. The two labor demand curves are identical.
Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in
each sector is Wn. This analysis suggests that a union wage advantage of Wu
minus Ws causes
a net efficiency
A. loss equal to E - A.
222. Empirical studies suggest that the efficiency loss associated with the misallocation of labor
caused by the union wage advantage is
A. $6 billion per year.
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D. about 4 percent of domestic output.
223. Which of the following statements is correct?
A. There is clear evidence that unions have increased the average level of real wage rates for
all workers.
224. Which one of the following research findings is most consistent with the hypothesis that
unions increase productivity?
A. Other things equal, firm profits are lower where unions are present.
Test Bank: I
Topi c :
Labor Unions and Their Impacts
True / False Questions
225. Since the mid-1950s, union membership has declined as a percentage of employed wage
and salary workers.
226. The rate of unionization is substantially higher for protective service workers than for
sales workers.
227. Unions prefer agency shops to open shops.
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written consent of McGraw-Hill Education.
Test Bank: I
Topi c :
Labor Unions and Their Impacts
228. There is no evidence that unions are able to increase wage rates above those that the
market would otherwise provide.
229. Union workers have higher rates of job turnover than do nonunion workers.
230. Right-to-work laws prohibit the formation of labor unions.
231. The presence of an agency shop requires all workers to join the union within the first 30
days of employment.
232. Seven of the 50 states account for approximately half of all union members in the United
States.
233. African Americans have higher unionization rates than whites.
234. In 2015, approximately 5 percent of all work time lost was due to work stoppages.
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AACSB: Knowledge Application
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Understand
Dif f i c u l t y :
02 Medium
Learning Objective: 17-09 (Appendix) Relate who belongs to U.S. unions, the basics of
collective bargaining, and the economic effects of unions.
Test Bank: I
Topi c :
Labor Unions and Their Impacts
Multiple Choice Questions
235. The concept of "wages" includes the following items, except
A. direct money payments like salaries and commissions.
236. Other things constant, which of the following is inversely related to inflation?
A. nominal wage only
237. If the price level rises by 4 percent in a year and nominal wages increase by 2 percent,
then real wages will
A. decrease by 6 percent.
238. Assume that your nominal wage was fixed at $15 an hour, and the price index rose from
100 to 105. In this case, your real wage has
A. decreased to $10.
239. Real wages would rise if the
A. prices of goods and services rose more rapidly than nominal-wage rates.
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so closely over time.
Test Bank: II
Topic:
Labor, Wages, and Earnings
240. Which statement is correct?
A. The percentage change in the nominal wage plus the percentage change in the price level
equals the percentage change in the real wage.
241. The consumer price index is 113 in Year 1 and 118 in Year 2. The nominal wage rate is $8
in Year 1 and $9 in Year 2. What is the approximate percentage change in the real wage rate
from Year 1 to Year 2?
A. 2 percent
242. Nominal monthly wages increase from $1,500 to $1,800, while the price level increases
by 4 percent. The percentage change in real monthly wages is about
A. 10 percent.
243. The nominal annual wage increases from $20,000 to $21,000, while the price level
increases by 7 percent. In this case, the percentage change in the real annual wage is about
A. −1 percent.
244. Productivity measures (such as output per worker-hour) and wage rates adjusted for
inflation in the United States are
A. inversely related.
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Learning Objective: 17-01 Explain why labor productivity and real hourly compensation track
so closely over time.
Test Bank: II
Topic:
Labor, Wages, and Earnings
245. Which of the following has not been a major factor contributing to the high productivity of
labor in the United States?
D. high levels of capital investment
246. Which of the following is an explanation for the high labor-productivity in the United
States?
D. plentiful labor resources
247. Which of the following is a valid explanation for real wage growth?
A. the rising cost of capital accumulation
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D. a rising rate of labor productivity growth
248. The basic explanation for high real wages in the United States and other industrially
advanced economies is that the
A. labor supply has increased more rapidly than labor demand in these nations.
249. In considering real-world situations, we must recognize the fact that by "wages" in this
chapter, we mean the following, except the
A. total price that employers pay to obtain labor.
250. In recent years, total compensation to workers has risen faster than the take-home pay of
average workers. This implies that
A. something is wrong with the statistics on either compensation or take-home pay.
251. According to the Conference Board data for 2013, which of the following nations had
significantly higher hourly wages for production workers compared to the U.S.?
D. Canada
252. A characteristic of a purely competitive labor market would be
A. "price-maker" behavior by the workers.
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Blooms: Understand
Dif f i c u l t y :
02 Medium
Learning Objective: 17-02 Show how wage rates and employment levels are determined in
competitive labor markets.
Test Bank: II
Topic:
A Purely Competitive Labor Market
253. In a purely competitive labor market, a profit-maximizing firm will hire labor up to the
point where the marginal revenue product of labor equals the
D. average cost of each unit of output.
254. A firm finds that it must increase wages to attract extra workers. The firm will hire labor
up to the point where the marginal
A. product of labor equals the wage rate.
255. If the supply of labor in a purely competitive labor market increases, then the product
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B. supply curve for a single employer will shift to the left.
C. demand curve for a single employer will shift to the right.
D. demand curve for a single employer will shift to the left.
256. A firm that hires labor and sells its product both in purely competitive markets will
A. have a horizontal demand curve for labor.
257. If the wage rate in a purely competitive labor market increases, it will cause the
A. marginal resource cost curve for a single competitive firm in the industry to shift down.
