Chapter 41
Unions
Multiple Choice
1. The percentage of workers represented by unions reached its peak in the
A) 1940’s.
B) 1970’s.
C) 1980’s.
D) 1990’s.
2. The peak of union representation in the workforce was
A) 50% in 1935.
B) 40% in 1945.
C) 30% in 1975.
D) 15% in 1985.
3. The current percentage of the private work force represented by unions is approximately
A) 30%.
B) 20%.
C) 10%.
D) 5%.
4. The current percentage of the total work force represented by unions is approximately
A) 35%.
B) 25%.
C) 15%.
D) 5%.
5. The current percentage of the government workers represented by unions is approximately
A) 35%.
B) 25%.
C) 15%.
D) 5%.
6. The number of workers represented by unions has
A) decreased.
B) increased.
C) stay roughly the same.
D) represented an ever larger fraction of the shrinking U.S. labor force.
7. Since the 1970s, the percentage or all workers represented by unions has
A) decreased.
B) increased.
C) stayed the same.
D) represented an ever larger fraction of the shrinking U.S. labor force.
8. The percentage of government workers that are unionized ________ the percentage of
private workers that are unionized.
A) is greater than
B) has always been less than
C) is roughly equal to
D) is, since the PATCO strike, smaller than
9. In Figure 41.1, the opportunity cost to workers of working at the equilibrium wage-labor
combination is
Wage
Labor
W*
L*
S
D
A
B
C
O
Figure 41.1
A) OACL*
B) OW*CL*
C) 0BCL*
D) ABC
10. In Figure 41.1, the added revenue that employers bring in from the work of their employees
at the equilibrium wage-labor combination is
Wage
Labor
W*
L*
S
D
A
B
C
O
Figure 41.1
A) OACL*
B) OW*CL*
C) 0BCL*
D) ABC
11. In Figure 41.1, the money that employers pay their employees at the equilibrium wage-labor
combination is
Wage
Labor
W*
L*
S
D
A
B
C
O
Figure 41.1
A) OACL*
B) OW*CL*
C) 0BCL*
D) ABC
12. In Figure 41.1, the profit that employers make from the work of their employees at the
equilibrium wage-labor combination is
`
Wage
Labor
W*
L*
S
D
A
B
C
O
Figure 41.1
A) OACL*
B) W*AC
C) BW*C
D) ABC
13. In Figure 41.1, the (producer) surplus that employees get at the equilibrium wage-labor
combination is
Wage
Labor
W*
L*
S
D
A
B
C
O
Figure 41.1
A) OACL*
B) W*AC
C) BW*C
D) ABC
14. The use of the supply and demand model to analyze labor markets implicitly assumes that
there is ____ governing the labor market.
A) perfect competition
B) monopoly
C) monopsony
D) bi-lateral monopoly
15. The use of the supply and demand model to analyze labor markets implicitly assumes that
there
A) are many buyers and sellers of labor.
B) is one buyer of labor.
C) is one seller of labor.
D) is one buyer and one seller of labor.
16. The use of the supply and demand model to analyze labor markets implicitly assumes that
A) sellers of labor have good knowledge about their opportunities.
B) there is one buyer of labor.
C) there is one seller of labor.
D) there is one buyer and one seller of labor.
17. If there are powerful unions in a labor market, the use of the supply and demand model to
analyze labor markets
A) is inappropriate.
B) is completely accurate.
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
18. If there are powerful unions in a labor market, the use of the supply and demand model to
analyze labor markets
A) will cause you to believe the wage will be higher than it is.
B) is completely accurate
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
19. If there are powerful unions in a labor market, the use of the supply and demand model to
analyze labor markets
A) will cause you to believe that more people will be hired than there will be.
B) is completely accurate.
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
20. In Figure 41.2, at the perfectly competitive equilibrium, the number of workers hired will be
Wage
Labor
W*
L*
S
MRPL
A
B
C
O
MRC
W1
W2
L’
E
F
Figure 41.2
A) L’
B) L*
C) less than L’
D) between L’ and L*
21. In Figure 41.2, at the one-employer “company town solution”, the number of workers hired
will be
Wage
Labor
W*
L*
S
MRPL
A
B
C
O
MRC
W1
W2
L’
E
F
Figure 41.2
A) L’
B) L*
C) less than L’
D) between L’ and L*
22. In Figure 41.2, at the perfectly competitive equilibrium, the wage will be
Wage
Labor
W*
L*
S
MRPL
A
B
C
O
MRC
W1
W2
L’
E
F
Figure 41.2
A) W*
B) W1
C) W2
D) between W1 and W2
23. In Figure 41.2, at the one-employer “company town solution”, the wage paid to workers will
be
Wage
Labor
W*
L*
S
MRPL
A
B
C
O
MRC
W1
W2
L’
E
F
Figure 41.2
A) W*
B) W1
C) W2
D) an undetermined point between W1 and W2
24. If there are powerful buyers in a labor market, the use of the supply and demand model to
analyze labor markets
A) is inappropriate.
B) is completely accurate.
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
25. If there are powerful buyers in a labor market, the use of the supply and demand model to
analyze labor markets
A) will cause you to believe the wage will be higher than it is.
B) is completely accurate
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
26. If there are powerful buyers in a labor market, the use of the supply and demand model to
analyze labor markets
A) will cause you to believe that more people will be hired than there will be.
B) is completely accurate.
C) will cause you to believe the wage will be lower than it is.
D) will cause you to believe that fewer people will be hired than there will be.
27. A company town model changes the market form from that of perfect competition to that of a
A) monopoly.
B) monopsony.
C) oligopoly.
D) monopolistic competition.
28. In Figure 41.3, the fact that there is a limit on the number of workers that can be certified is
shown by
Wage
Labor
W*
L*
S
D
A
B
C
O
S’
D’
W’
L’
Figure 41.3
A) the kinked shape of the new supply curve.
B) the slope the old supply curve.
C) the slope of the old demand curve.
D) the increase in the demand curve.
29. In Figure 41.3, the fact that workers must pay for their apprenticeship in order to be certified
is shown by
Wage
Labor
W*
L*
S
D
A
B
C
O
S’
D’
W’
L’
Figure 41.3
A) the kinked shape of the new supply curve.
B) the shift in the old supply curve.
C) the slope of the old demand curve.
D) the increase in the demand curve.
30. In Figure 41.3, the fact that workers become more valuable to employers because of the
training required for certification is shown by
Wage
Labor
W*
L*
S
D
A
B
C
O
S’
D’
W’
L’
Figure 41.3