10-14
37. Refer to the following graph, in which π1 and π2 are a firm’s isoprofit curves. The monopoly union
outcome is given by point ū.
Which of the following is a true statement? If the firm pays
38. Refer to the following graph, in which π1 and π2 are a firm’s isoprofit curves. The monopoly union
outcome is given by point ū.
10-15
Which of the following is a true statement? The union is indifferent between outcomes
39. Refer to the following graph, in which π1 and π2 are a firm’s isoprofit curves. The monopoly union
outcome is given by point ū.
10-16
An efficient labor contract entails
40. Refer to the following graph, in which π1 and π2 are a firm’s isoprofit curves. The monopoly union
outcome is given by point ū.
Compared to the monopoly union outcome, wage and employment contracts along the bargaining curve
between x and y entail
41. A strongly efficient union contract
10-18
42. Which one of the following union lobbying activities, if successful, would increase the demand for
union labor? Lobbying for legislation that
43. A union might attempt to raise both the wage rate and employment of its members by
44. A union will most likely attempt to restrict the growth of labor supply if
45. Which of the following actions might a union use to try to restrict the growth of labor supply?
46. The employment impact of a union-imposed above-equilibrium wage will tend to be greater
47. According to models of asymmetric information, strikes are more likely when
10-20
48. Refer to the following diagram, in which EC is the employer concession curve and UR is the union
resistance curve.
If both the union and the firm know the shape and position of the other’s concession curve, then
49. Refer to the following diagram, in which EC is the employer concession curve and UR is the union
resistance curve.
10-21
The UR curve will shift up if the expected costs of a strike to the
50. Refer to the following diagram, in which EC is the employer concession curve and UR is the union
resistance curve.
10-22
The model assumes that, as the expected length of a strike increases
51. Refer to the following diagram, in which EC is the employer concession curve and UR is the union
resistance curve.
The more elastic the demand for labor, the
52. If employers are prohibited from hiring permanent strikebreakers
10-24
53. If labor unions are successful in their lobbying efforts to have the WTO include labor and
environmental standards in future agreements
54. Which one of the following is a true statement?
Chapter 10 Test Bank Summary
Category
# of Que
stions
AACSB: Analytic
4
AACSB: Reflective Thinking
50
Accessibility: Keyboard Navigation
43
Blooms: Apply
4
Blooms: Remember
37
Blooms: Understand
13
Difficulty: 1 Easy
37
Difficulty: 2 Medium
13
10-25
Difficulty: 3 Hard
4
Learning Objective: 10-
01 Describe the historical background to the development of labor unions.
1
Learning Objective: 10-
02 Describe the distribution of union membership and the basic structure of American lab
or unionism.
21
Learning Objective: 10-
03 Summarize recent trends in private sector unionism and evaluate the various explanati
ons for the relative decline in union membership.
11
Learning Objective: 10-
04 Explain the monopoly union and efficient contract models of unions and summarize th
e empirical evidence.
9
Learning Objective: 10-
05 Summarize the techniques that unions use to raise the wages of their members.
7
Learning Objective: 10-
06 Explain the accident and asymmetric information models of strikes.
5
Topic: Labor Unionism: Facts and Figures
21
Topic: Strikes and the Bargaining Process
5
Topic: Unionism’s Decline
10
Topic: Unions and Wage Determination
8
Topic: What Do Unions Want?
9
Topic: Why Unions?
1