Question 1

In 2013, The Conference Board of Canada concluded that more than one in seven Canadian children live in poverty.

Accepted Answer

The Conference Board of Canada did indeed conclude in 2013 that more than one in seven Canadian children live in poverty.

Question 2

Work organization, labour force composition, and individualization of human resources are examples of some of the profound changes that have occurred over the last 30 years.

Accepted Answer

These changes are among the key characteristics of the shift towards a post-industrial economy and the rise of the knowledge-based society.

Question 3

A monopsony occurs when an organization is the sole market buyer of a good, service, or labour.

Accepted Answer

A monopsony occurs when there is only one buyer in the market, giving them significant power over determining prices and wages.

Question 4

An industry is said to be labour intensive if labour costs are a high proportion of total costs.

Accepted Answer

This statement is true. An industry is considered labour intensive if labour costs represent a significant portion of total costs. Examples of labour-intensive industries include agriculture, textiles, and hospitality.

Question 5

The Canadian parliamentary system and constitutional fragmentation mean that labour has been able to use its political association with the NDP, and in Quebec with the PQ, to win significant legislative gains.

Accepted Answer

In Canada, the parliamentary system and constitutional fragmentation have allowed labour to leverage its political connections with the NDP and PQ to achieve legislative victories.

Question 6

A key economic assumption is that labour is perfectly mobile.

Accepted Answer

Labour is not perfectly mobile in reality due to factors such as geographical barriers, language differences, and cultural norms.

Question 7

According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.

Accepted Answer

According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.

Question 8

According to the Organization for Economic Co-operation and Development, Canada is
among the worst countries in the developed world in term of widening income gap.

Accepted Answer

The Organization for Economic Co-operation and Development has reported that Canada is among the worst countries in the developed world in terms of increasing income inequality.

Question 9

In contrast to its American counterpart, the Canadian labour movement has managed to organize new members and avoid the steep decline in union density found in the United States.

Accepted Answer

According to research, the Canadian labour movement has managed to maintain a relatively stable union density rate of around 30%, while the United States has seen a significant decline in union membership over the past few decades.

Question 10

Unions have had less success organizing contingent workers.

Accepted Answer

Contingent workers, such as freelance and contract employees, are not as easily organized by unions due to their non-traditional employment status and lack of job security.

Question 11

In today's world, what influences industrial relations?

Accepted Answer

Macro-economic policies, such as liberalization of markets, have a significant influence on industrial relations. These policies affect the labour market by altering employment patterns, wage levels, and job security, which in turn can change the nature of employer-employee relations. Additionally, macro-economic policies can affect the bargaining power of unions and the extent of regulatory protection available to employees.

Question 12

Globalization has resulted in a greater mobility of capital and decreases in the flow of goods.

Accepted Answer

The statement is incorrect. Globalization has resulted in increased flows of both capital and goods across borders.

Question 13

What does "elasticity of supply" mean?

Accepted Answer

Elasticity of supply refers to the responsiveness of the quantity of a good supplied to changes in its price. When the elasticity of supply is high, a small change in price leads to a relatively larger change in the quantity supplied. Therefore, choice C is the most accurate representation of elasticity of supply as it states that a small change (increase) in wage rate leads to an increased labor supply. The other choices are not related to elasticity of supply.

Question 14

Monopsony exists when a firm is a wage setter but not a wage taker.

Accepted Answer

Monopsony occurs when there is only one buyer of a particular type of labor, allowing the firm to set wages below the equilibrium level. As a result, the firm has the power to set wages, making it a wage setter but not a wage taker.

Question 15

Unions will have more bargaining power when there is little competition in the firm's product market.

Accepted Answer

When there is little competition in the firm's product market, the firm will have more market power and may choose to pay lower wages and benefits to workers. Unions can increase their bargaining power by threatening strikes or other forms of disruption that could harm the firm's profits in such a market. Thus, when there is little competition, unions may have more leverage in negotiations with employers.

Question 16

An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply.

Accepted Answer

An elastic supply curve for labour indicates that the quantity of labour supplied is highly responsive to changes in wages, so a small increase in wages will lead to a significant increase in the quantity of labour supplied.

Question 17

In theory and in practice, labour markets are always competitive.

Accepted Answer

In theory, labour markets are assumed to be perfectly competitive, but in reality, there can be many factors that prevent perfect competition, such as monopsony power of employers, barriers to entry for workers, and information asymmetry. Therefore, labour markets may not always be competitive in practice.

Question 18

An argument in favour of restructuring policies is that they benefit workers who lack the necessary skills to compete in the new economy.

Accepted Answer

The answer of An argument in favour of restructuring policies...

Question 19

Temporary and casual work falls under the category of contingent work.

Accepted Answer

Temporary and casual work are forms of contingent work, which refers to any type of employment that is not permanent or full-time. This can include contract work, part-time work, freelance work, and other non-traditional forms of employment.

Question 20

In the context of elasticity of demand, what does "steep demand" mean?

Accepted Answer

Steep demand refers to a situation where a small change in price leads to a relatively large change in the quantity demanded. In this case, a small increase in quantity demanded will cause a large increase in wages, indicating an elastic demand.

Quiz 3: Economic, Social, and Political Environments

In 2013, The Conference Board of Canada concluded that more than one in seven Canadian children live in poverty.

Work organization, labour force composition, and individualization of human resources are examples of some of the profound changes that have occurred over the last 30 years.

A monopsony occurs when an organization is the sole market buyer of a good, service, or labour.

An industry is said to be labour intensive if labour costs are a high proportion of total costs.

The Canadian parliamentary system and constitutional fragmentation mean that labour has been able to use its political association with the NDP, and in Quebec with the PQ, to win significant legislative gains.

A key economic assumption is that labour is perfectly mobile.

According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.

According to the Organization for Economic Co-operation and Development, Canada is among the worst countries in the developed world in term of widening income gap.

In contrast to its American counterpart, the Canadian labour movement has managed to organize new members and avoid the steep decline in union density found in the United States.

Unions have had less success organizing contingent workers.

In today's world, what influences industrial relations?

Globalization has resulted in a greater mobility of capital and decreases in the flow of goods.

What does "elasticity of supply" mean?

Monopsony exists when a firm is a wage setter but not a wage taker.

Unions will have more bargaining power when there is little competition in the firm's product market.

An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply.

In theory and in practice, labour markets are always competitive.

An argument in favour of restructuring policies is that they benefit workers who lack the necessary skills to compete in the new economy.

Temporary and casual work falls under the category of contingent work.

In the context of elasticity of demand, what does "steep demand" mean?