Deck 3: Economic, Social, and Political Environments

Question 1

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

Answer 1

True

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.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

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.

Question 6

A key economic assumption is that labour is perfectly mobile.

Question 7

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.

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.

Question 10

Unions have had less success organizing contingent workers.

Question 11

In today's world, what influences industrial relations?

A) declining labour intensity
B) macroeconomic policy regarding liberalization of markets
C) rising regional unemployment
D) very elastic labour supply

Question 12

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

Question 13

What does "elasticity of supply" mean?

A) Labour responds to a decreased demand by raising the wage rate.
B) Wage changes are flexible.
C) Labour supply is increased due to a small change in the wage rate.
D) A steep demand curve results in large wage increases.

Question 14

Monopsony exists when a firm is 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.

Question 16

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

Question 17

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

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.

Question 19

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

Question 20

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

A) A large increase in the quantity demanded will cause a small increase in wages.
B) A small increase in the quantity demanded will cause a large increase in wages.
C) A small increase in the quantity demanded will cause a small increase in wages.
D) A large increase in the quantity demanded will cause a large increase in wages.

Question 21

Why do new forms of work in a post-industrial economy present major challenges for collective bargaining?

A) Industrial relations practices were designed for workers in stable, long-term employment.
B) Unions are uncertain how to manage their diverse new forms of power.
C) The great variety of labour legislation makes it difficult to know which laws to follow.
D) Contemporary workers are very dissatisfied with their jobs.

Question 22

Which of the following best explains why there has not been a steep union decline in Canada?

A) occupational shift from manufacturing to service
B) the existence of labour-friendly laws
C) the political system favours business
D) a single labour law covers most workers

Question 23

According to the textbook, which category lies outside the framework for analysis of work-life balance?

A) economic
B) demographic
C) social
D) legal

Question 24

The shape of the demand curve is important, because it influences a union's ability to raise wages without significantly affecting employment levels. What is this effect called?

A) wage-employment trade-off
B) wage elasticity
C) substitution effect
D) labour intensity

Question 25

In a global economy where competition is intense, why will employers have greater bargaining power?

A) demand for labour is elastic
B) supply of labour is elastic
C) substitutes for local labour are expensive
D) product markets are less competitive

Question 26

Which statement best summarizes the challenges facing today's Canadian unions?

A) Contingent workers are difficult to organize.
B) Part-time work represents four percent of today's labour force.
C) Work in Canada is undergoing significant economic change.
D) Workers are more interested in politics than workplace issues.

Question 27

In economic theory, what kinds of markets generally have lower wages and employment levels?

A) monopsonistic markets
B) poorly mobile job markets
C) highly mobile job markets
D) monopolistic markets

Question 28

Which statement best describes the reason for union decline?

A) There is more individual protection under health and safety laws.
B) Globalization has reduced levels of competition.
C) Improved human resources practices meet individual needs.
D) There have been significant changes in employment legislation.

Question 29

What do Marshall's four conditions do?

A) explain what elasticity means
B) help management in their evaluating procedures
C) describe the guidelines for proper bargaining
D) determine labour responsiveness to change in wages

Question 30

Which term refers to the desire of both employees and employers to achieve a balance between workplace obligations and personal responsibilities?

A) work-employment trade-off
B) work-life balance
C) wage-work trade-off
D) life-employment balance

Question 31

Sears Canada implemented a planned outsourcing of 1600 call-centre jobs. What did this situation exemplify?

A) the substitution effect of capital for labour
B) the effect of the wage-employment trade-off in a highly competitive environment
C) an inelastic demand for labour
D) the existence of labour market equilibrium

Question 32

What is teleworking an example of?

A) contingent work
B) occupational shifts
C) employee demands
D) union demands

Question 33

Which term best describes the act of working at a nontraditional location outside the employer's workplace?

A) part-time work
B) contingent work
C) flextime work
D) telework

Question 34

What are noneconomic sources of union power?

A) immigration policy
B) work-leisure lobbyists
C) community groups
D) mandatory union dues check-off

Question 35

What are Marshall's four conditions related to wage elasticity?

A) wages, labour market, substitution effect, and product market
B) product market, substitution effect, market for substitutes, and labour intensity
C) labour intensity, market for products, substitution effect, and wages
D) labour market, work-life balance, product market, and wages

Question 36

According to Statistics Canada, which statement best describes people who are employed part-time?

A) They work the same hours as all other part-time employees.
B) They usually work 35 hours per week.
C) They work fewer hours than the average employee.
D) They usually work in their main job less than 30 hours per week.

Question 37

According to Marshall's conditions, when will unions have more power?

A) when product markets are very competitive
B) when it is easy to substitute labour for capital
C) when there is less competition in the firm's product market
D) when the market for substitutes is competitive

Question 38

Which statement best describes the current Canadian economy?

A) International immigrants' birth rates do not affect potential labour supply.
B) Retirement choices, leisure choices, and career patterns have little impact on labour supply.
C) Unions are building a base of power from sources other than current labour markets.
D) As wages rise, workers want and take more leisure time.

Question 39

Sometimes it is easier to use machines and technology than to use labour. Which term refers to this type of situation?

A) product market
B) substitution effect
C) electronic commerce
D) labour demand

Question 40

Which statement best describes the current labour environment?

A) Industrial relations in Canada has remained unchanged over the years.
B) Unions are happy with the current labour system in North America.
C) Governments are increasingly reluctant to intervene in labour markets.
D) More women, occupational shift workers, and contingent workers are affecting unions.

Question 41

How have unions managed to remain an important force in the Canadian workplace despite major structural changes?

A) There are many more contingent workers in today's workforce.
B) Workers in small workplaces have unionized.
C) Large numbers of unionized workers have been laid off in manufacturing.
D) Unions are popular in information technology firms.

Question 42

Support for unions in North America remains strong, and yet surveys show workers are also very satisfied with their jobs and pay. What can explain these results?

A) The reported studies used different research methods and obtained different results.
B) Workers are generally unaware of economic changes that affect them.
C) Workers want a collective, independent voice at work.
D) Results from studies conducted in Quebec influenced the research findings.

Question 43

Which statement best summarized why globalization is considered a force that restricts governments?

A) Countries have to comply with international policies.
B) The federal government can experiment with reforms.
C) Progressive governments influence global labour policy.
D) Most large countries have conservative governments.

Question 44

What does Weber's theory of social closure tell us?

A) Many occupations erect barriers to restrict supply and affect earnings.
B) Many institutions remove barriers to increase supply and maintain earnings.
C) Many occupations erect barriers to increase supply and suppress earnings.
D) Many institutions remove barriers to restrict supply and enhance earnings.

Question 45

Why do new forms of work in a post-industrial economy present major challenges for collective bargaining?

A) Industrial relations practices were designed for workers in stable, long-term employment.
B) Unions are uncertain how to manage their diverse new forms of power.
C) The great variety of labour legislation makes it difficult to know which laws to follow.
D) Contingent workers are very dissatisfied with their jobs.

Question 46

What phenomenon is exemplified by the emergence of specialized qualifications and certifications for professional associations?

A) noneconomic sources of labour power
B) monopsony
C) Weber's closure theory
D) compositional changes in the workforce

Question 47

Which statement best explains why unions have declined rapidly in the U.S. but have maintained strength in Canada?

A) The American economy has shifted away from manufacturing, but the Canadian economy has not.
B) More Canadian families benefit from a stay-at-home parent who does not work.
C) Canadian political parties have little power to change legislation.
D) Canada has over a dozen labour laws, while the U.S. has only one.

Question 48

What is a hiring hall?

A) a management-run operation used to recruit workers
B) a human resources tactic used to encourage employees to take different jobs within the firm
C) a union-run centre that coordinates the match between labour and job sites
D) a joint union-management plan to recruit workers

Question 49

How has the Canadian labour movement organized new members and avoided union decline?

Question 50

Which of the following conditions will limit labour mobility?

A) low income
B) fluency in several languages
C) a small local population
D) high local unemployment

Question 51

Which important social and historic experience has led Canada to take a different approach than the United States' opposition to collective bargaining?

A) The 1982 Charter of Rights and Freedoms facilitates collective bargaining.
B) American-owned companies in Canada operate under U.S. law.
C) Right to work legislation in the U.S. does not apply to Canadians working in the U.S.
D) Employment legislation is controlled by the federal government.

Question 52

What are the components of work-life conflict?

Question 53

Explain three main factors that have contributed to the impact of compositional changes on unions?

Question 54

Why are poverty rates in Canada increasing?

A) More elderly people are living in poverty.
B) Disposable income has fallen.
C) More children are living below the poverty line.
D) Mandatory retirement has been abolished.

Question 55

Many believe that unions have outlived their usefulness. List several reasons that support the belief that unions will eventually decline?

Question 56

Marshall (1920) describes four theoretical conditions that determine the wage elasticity of labour. Describe these four conditions.

Question 57

What concept is illustrated by the migration of Canadian citizens from one province to another?

A) contingent work
B) institutional barriers to supply
C) demographic factors
D) labour intensity

Question 58

What relationship exists between poverty rates and the environment of industrial relations?

A) Poverty rates in North America have declined as average incomes have risen since 1989.
B) Union and non-union workers experience nearly identical earning inequality.
C) The widening gap between the wealthy and the poor is directly linked to union decline.
D) Union support is greatest among the "working poor."

Question 59

Define the five types of contingent work.

Question 60

What three important social and historic experiences have led Canada to accept collective bargaining?