Deck 27: Labor Unions

Question 1

When a firm exercises monopsony power,

A)the firm increases its profits at the expense of its workers.
B)workers gain but the firm loses.
C)workers,consumers,and owners of the firm are made better off.
D)both the firm and the workers gain.

Answer 1

A

Question 2

About ______% of the labor force belongs to a labor union.

A)8
B)12
C)19
D)26

Answer 2

B

Question 3

Which statement is false?

A)The two basic ways that unions have of exerting power is inclusion and exclusion.
B)A smaller percentage of the labor force is members of unions today than 35 years ago.
C)Collective bargaining is the main arena of the power struggle between labor and management.
D)None of the statements are false.

Answer 3

D

Question 4

When did union membership show its biggest increase?

A)1925-1935
B)1935-1945
C)1945-1955
D)1955-1965
E)1965-1975

Question 5

Compared to the 1950s,60s,and 70s,today we have _______ strikes involving large numbers of workers.

A)substantially more
B)somewhat more
C)about the same number of
D)somewhat fewer
E)substantially fewer

Question 6

Each of these is an industrial union except

A)the steel workers' union.
B)the auto workers' union.
C)the teamsters' union.
D)the musicians' union.

Question 7

Around ___________ million Americans are members of labor unions.

A)8
B)15
C)21
D)26

Question 8

Which statement is true?

A)Most collective bargaining negotiations end in strikes.
B)The two key provisions in a collective bargaining agreement are (1)wages and hours and (2)job security and seniority.
C)Most strikes have disrupted our economy.
D)None of these statements are true.

Question 9

An industrial union would be organized among a group such as

A)air traffic controllers.
B)plumbers.
C)airline pilots.
D)steel workers.

Question 10

Which statement is false?

A)Unions have raised wages.
B)Unions provide a measure of job security.
C)A union may have to call a strike sometime just to maintain credibility with its membership and the publiC.
D)None of these statements are false.

Question 11

The National Labor Relations Act (or Wagner Act)was passed in

A)1900.
B)1920.
C)1935.
D)1950.
E)1965.

Question 12

Unions try to raise wages mainly by directing

A)the demand for labor.
B)the supply of labor.
C)both the demand for labor and the supply of labor.
D)neither the demand for labor nor the supply of labor.

Question 13

Which statement is true?

A)Most U.S.workers are members of labor unions.
B)Union membership has been hurt in recent decades by the decline in manufacturing.
C)The union movement is most powerful in the South.
D)None of these statements are true.

Question 14

"Right-to-work" laws

A)make it harder for unions to organize.
B)make it easier for unions to organize.
C)have no effect on union organizing.

Question 15

A "bill of rights" for union members and a provision of union election procedures were two of the main provisions of the _____ Act.

A)National Labor Relations
B)Taft-Hartley
C)Landrum-Griffin
D)Sherman Antitrust

Question 16

The _____ Act allows states to enact "right-to-work" laws.

A)National Labor Relations
B)Taft-Hartley
C)Landrum-Griffin
D)Sherman Antitrust

Question 17

Labor unions did not become traditional or popular institutions until the

A)1920s.
B)1940s.
C)1960s.
D)1980s.

Question 18

The predecessor to the AFL was the

A)Teamsters Union.
B)Knights of Labor.
C)CIO.
D)International Workers of the World.

Question 19

In the first few decades of its existence,the AFL

A)was concerned with obtaining bargaining strength in the face of the economic power of the emerging large corporations.
B)was primarily concerned with long range goals such as a universal eight-hour day rather than "bread and butter issues" such as higher wages.
C)leadership was opposed to use of the strike as a method to achieving its goals.
D)did all of these things.

Question 20

Which statement is true?

A)Americans first embraced labor unions as an important institution at the same time presidents Teddy Roosevelt and William Howard Taft were breaking up some of the major trusts.
B)Labor leader Samuel Gompers pushed for socialist reforms such as the 8-hour day and the elimination of the wage system.
C)The National Labor Relations Act was passed the year after the Sherman Anti-trust Act of 1891.
D)Labor unions were considered subversive until the 1940s.

Question 21

An example of an exclusive union would be

A)the International Brotherhood of Teamsters.
B)the Professional Air Traffic Controllers Organization.
C)the United Auto Workers.
D)the International Ladies Garment Workers Union.

Question 22

Statement I.Most adult Americans are either members of labor unions or married to union members.
Statement II.Right to Work laws help unions organize workers.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 23

All workers must join the union within 30 days after employment in a

A)union shop.
B)closed shop.
C)craft union.
D)business union.

Question 24

The job of _____ is to impose a settlement.

A)an arbitrator
B)a mediator
C)a collective bargaining team leader

Question 25

Statement I.After a few setbacks in the early 1980s,labor union membership has been growing steadily for the last 15 years.
Statement II.Nearly one out of four collective bargaining negotiations end in strikes.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 26

Which statement is true?

A)Both craft and industrial unions are organized along the lines of particular skills.
B)Neither craft nor industrial unions are organized along the lines of particular skills.
C)Craft unions-but not industrial unions-are organized along the lines of particular skills.
D)Industrial unions-but not craft unions-are organized along the lines of particular skills.

Question 27

Union membership peaked in the

A)mid-1930s.
B)late-1950s.
C)late-1970s.
D)early 1980s.

Question 28

The establishment of "right-to-work" laws came about with the passage of the

A)Sherman Antitrust Act.
B)Taft-Hartley Act.
C)National Labor Relations Act.
D)Landrum-Griffin Act.

Question 29

You are most likely to be a union member if you

A)live in a right-to-work state.
B)live in the South.
C)are a government employee.
D)work in retailing.
E)work for a foreign-owned auto plant.

Question 30

Which statement is true?

A)Most strikes cause serious economic disruptions.
B)The threat of a strike provides the motivation necessary to make collective bargaining work.
C)Most labor unions enter collective bargaining hoping for a strike.
D)None of the choices are true.

Question 31

_____ Act set forth a list of "employers' rights."

A)Both the Taft-Hartley and the National Labor Relations
B)Neither the Taft-Hartley nor the National Labor Relations
C)The Taft-Hartley,but not the National Labor Relations
D)The AFL,but not the Knights of Labor

Question 32

____________ are an example of a bilateral monopoly.

A)Auto workers and auto companies
B)Teachers in most large school districts
C)Aerospace workers and Boeing
D)All of these choices are examples.

Question 33

The year that had the most disruptive strikes was

A)1929.
B)1933.
C)1946.
D)1973.
E)1980.

Question 34

The number of labor union members reached its peak in the decade of the

A)1950s.
B)1960s.
C)1970s.
D)1980s.
E)1990s.

Question 35

The AFL split in 1935 because of a dispute over

A)whether to organize along craft or industrial lines.
B)whether or not to strike.
C)whether or not to support President Roosevelt for reelection.
D)whether or not to expel the Teamsters Union for corruption.

Question 36

Which statement is true?

A)About one-quarter of all collective bargaining negotiations end in strikes.
B)Nearly all union contracts now have escalator,or cost-of-living clauses.
C)Productivity increases are a key collectively bargaining issue.
D)None of the choices are true.

Question 37

At its peak labor union membership was about _____% of the labor force.

A)15
B)25
C)35
D)45
E)55

Question 38

One reason unions have declined as a percent of the workforce is that workers have shifted from __________ to __________ industries,which are harder to organize.

A)manufacturing;service
B)service;manufacturing
C)financial;manufacturing
D)None of these choices are correct.

Question 39

Collective bargaining agreements in the United States generally

A)are negotiated for only a 1-year period.
B)are very detailed and specify wages levels and fringe benefits for a period of 2-3 years.
C)cover wages only.
D)are negotiated for only a 6-month perioD.

Question 40

The ____ Act supported union organizing while the ____ Act protected "employers' rights."

A)Wagner;Landrum-Griffin
B)Landrum-Griffin;Wagner
C)Taft-Hartley;Landrum-Griffin
D)Wagner;Taft-Hartley

Question 41

A pure monopsonist

A)is the sole buyer of a particular good or resource in a given market.
B)can adjust only quantity produced and so is a price-taker in the input market.
C)purchases as many units of input as it desires without influencing the per unit price of the input.
D)confronts a perfectly elastic supply curve of the input.

Question 42

If unions are successful in negotiating a wage higher than the market equilibrium wage,and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,

A)the quantity of labor demanded will exceed the quantity supplied at the union wage.
B)the quantity of labor demanded will equal the quantity supplied at the union wage.
C)the quantity of labor demanded will fall short of the quantity supplied at the union wage.
D)all workers who join the union will be guaranteed a job.

Question 43

When all the workers in a particular industry are unionized under a single union,there is a(n)

A)exclusive union.
B)inclusive union.
C)craft union.
D)revolutionary union.
E)union town.

Question 44

The right to work laws of a number of states

A)guarantee workers the right to join a union.
B)commit them to achieve a goal of full employment.
C)require that union membership cannot be made a condition of employment.
D)forbid job discrimination because of race,sex,age,or religion.

Question 45

Which statement is true?

A)There are currently about 35 million labor union members in the U.S.labor force.
B)About one out of every four sets of collective bargaining sessions ends in a strike.
C)Union membership as a percentage of the labor force has been declining since the 1950s.
D)None of the statements are true.

Question 46

An industrial union is a union composed of

A)workers in numerous occupations but working in the same industry.
B)workers in manufacturing industries,rather than in the commercial,service,or government sectors.
C)workers sharing a similar industrial job.
D)high-wage workers.

Question 47

A firm that operates a closed shop

A)generates more profits than a firm beset by union strikes.
B)is less under organized labor's control than a union shop.
C)can only hire workers who are already union members.
D)hires only nonunion workers.

Question 48

Which statement is true?

A)One way that craft unions can increase the wages of their members is to limit the number of people permitted to learn their trade.
B)Right-to-work laws increase the power of unions.
C)The United Auto Workers is an example of a craft union.
D)None of the statements are true.

Question 49

Inclusive union strategy involves

A)increasing the demand for the final product,thereby increasing the demand for labor.
B)restricting the supply of union labor.
C)setting job standards and entry qualifications for members.
D)organizing all workers in a particular craft or industry and bargaining for a wage.
E)negotiating only after a strike has been called.

Question 50

Which statement is true?

A)Both the Taft-Hartley and Wagner Acts are viewed as pro-labor.
B)Both the Taft-Hartley and Wagner Acts are viewed as anti-labor.
C)The Taft-Hartley Act is viewed as pro-labor and the Wagner Act is viewed as anti-labor.
D)The Taft-Hartley Act is viewed as anti-labor and the Wagner Act is viewed as pro-labor.

Question 51

If all professional baseball teams collude to reduce the wages paid to players,they are acting as

A)a pure monopsony.
B)a pure monopoly.
C)a labor union.
D)a pure oligopoly.

Question 52

An injunction might be used to

A)increase wages.
B)increase employment.
C)require labor to return to work.
D)increase the demand for labor.
E)decrease the demand for nonunion labor.

Question 53

The National Labor Relations Act

A)forbade the closed shop.
B)was an anti-labor piece of legislation.
C)guaranteed labor the right to organize unions.
D)allows firms to refuse to negotiate with an elected union.

Question 54

An example of an inclusive union is

A)the American Federation of Teachers.
B)the International Brotherhood of Teamsters.
C)the American Medical Association.
D)the Professional Air Traffic Controllers Organization.

Question 55

According to Samuel Gompers,the founder of the AFL,

A)unions should attempt to organize all workers.
B)labor should form a political party and run candidates for public office.
C)labor should seek government intervention in the labor-management relationship.
D)labor should concentrate on bread-and-butter issues.

Question 56

Exclusive union strategy involves

A)increasing the demand for the final product,thereby increasing the demand for labor.
B)restricting the supply of union labor.
C)setting job standards and entry qualifications for members.
D)organizing all workers and bargaining for a wage.
E)negotiating only after a strike has been called.

Question 57

A closed shop

A)is an arrangement unions have with employers limiting employment to union members only.
B)is one in which union workers cannot be hired.
C)allows a firm to close its doors at will.
D)is legal in the United States.

Question 58

Union membership fell in the

A)1940s.
B)1950s.
C)1960s.
D)1970s.
E)1980s.

Question 59

Collective bargaining

A)deals only with issues relating to wages.
B)substitutes one labor negotiator for many independent workers.
C)is NOT a function of labor unions.
D)is illegal in the United States.

Question 60

A union composed of members with the same trade or occupation is called

A)an industrial union.
B)a trade association.
C)a government union.
D)a craft union.

Question 61

Which factor has most affected the ability and the willingness of union members to strike in the last decade?

A)The rising number of people working for the government.
B)The possibility of hiring permanent replacement workers in the U.S.or overseas.
C)The rising cost of living,which has lowered the purchasing power of strike benefits.
D)High unemployment,which makes it more difficult for strikers to find temporary jobs.

Question 62

A closed shop agreement between unions and employers

A)will decrease wages.
B)allows employers to hire all the labor they desire.
C)will increase wages.
D)will increase the quantity of labor demanded by employers.

Question 63

The __________ Act protects employee rights and the __________ Act protects employer rights.

A)Wagner;Taft-Hartley
B)Taft-Hartley;Wagner
C)Sherman Antitrust;Wagner
D)Taft-Hartley;Landrum-Griffin

Question 64

Each of these is a craft union except

A)the plumbers' union.
B)the textile workers' union.
C)the musicians' union.
D)the air traffic controllers' union.

Question 65

Since the mid-1980s labor union membership has been between ______ million members.

A)15-18
B)21-24
C)24-27
D)27-30

Question 66

Prior to the AFL-CIO merger in 1955

A)the AFL was an alliance of industrial unions.
B)the CIO was an alliance of craft unions.
C)the AFL began to organize its own industrial unions as well as craft unions.
D)the union movement was restricted to public employees.

Question 67

Professional athletes would earn even more if it were not for the ____________ power of professional sports.

A)monopoly
B)monopsony
C)union
D)None of these choices are true.

Question 68

The basic economic goal of American labor unions is

A)to increase the real income of their members.
B)to increase the real income of all workers.
C)to improve the nominal wages of their members.
D)to improve working conditions.
E)to gain political power.

Question 69

Collective bargaining involves negotiations over

A)pay.
B)working conditions.
C)fringe benefits.
D)All of these choices are correct.

Question 70

_______________ have been unable to organize a union in any of the foreign-owned factories owned by Honda,Toyota,and Nissan.

A)The United Autoworkers
B)The National Education Association
C)The International Brotherhood of Teamsters
D)The Service Employees International Union

Question 71

Major league baseball is exempt from antitrust prosecution by way of the so-called "reserve clause." The elimination of the reserve clause in baseball to encourage players to act as free agents can help

A)reduce the exercise of monopsony power by team owners.
B)increase the exercise of monopsony power by team owners.
C)increase the profits of team owners.
D)reduce the wages paid to baseball players.

Question 72

Right to work laws

A)are part of the legislation that was the foundation for the growth of unions in the U.S.
B)are included in the Wagner Act.
C)permit workers to be paid less than comparable worth would allow.
D)are in state laws that limit union power.

Question 73

Statement I.The United Food and Commercial Workers have been successful in organizing unions at Wal-Mart stores around the country.
Statement II.Because Wal-Mart's employee pay and benefits were about $10-14 an hour less than those at competing California unionized supermarkets,three competing supermarket chains demanded wage and other concessions from their employees to be able to compete with Wal-Mart.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 74

Statement I.There were more strikes in 1994 than in any other year in our history.
Statement II.Very few strikes have disrupted the U.S.economy.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 75

A pure monopsony exists in a labor market when

A)a labor union dominates the labor market.
B)a single buyer buys all of a given type of labor that has few other employment opportunities.
C)only a few firms purchase the services of labor in the market.
D)many competing firms purchase the services of labor in the market.

Question 76

The Taft-Hartley Act was passed in the ___ and the Labor Relations (Wagner)Act was passed in the ___.

A)1930s;1930s
B)1930s;1940s
C)1940s;1930s
D)1940s;1940s

Question 77

The AFL was made up mostly of __________ unions prior to 1935.

A)craft
B)industrial
C)financial
D)None of the statements are true.

Question 78

Which statement is true?

A)A majority of union members in the United States are members of public employees unions.
B)A majority of workers in the United States are members of labor unions.
C)Labor union membership is especially high in most Southern states.
D)None of the statements are true.

Question 79

Which statement is true?

A)The National Football League,Major League Baseball,and the National Basketball Association are all monopsonies.
B)Professional baseball,basketball,and football all used to be monopsonies,but ceased to be with the emergence of free agent bargaining.
C)Professional sports are not now,nor ever were monopsonies.
D)None of these statements are true.

Question 80

A monopsony exists when

A)there is a single seller with no rivals in an input market.
B)there is a labor union controlling labor supply in a labor market.
C)there is a single buyer with no rivals in an input market.
D)employers in a labor market face a horizontal labor supply curve.