Question 1

The share of the labor force that was unionized fell from more than 30 percent in the 1950s to less than 15 percent in the 2000s. During this time period, the share of national income allocated to labor (in contrast to capital)

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The answer of The share of the labor force that...

Question 2

Data on the relationship between the percentage of the workforce unionized and the share of national income allocated to labor suggest that unionization has

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The answer of Data on the relationship between the percentage...

Question 3

The share of the labor force that was unionized increased from 7.4 percent in 1930 to more than 30 percent in 1955. During these 25 years, the share of national income allocated to labor (in contrast to capital)

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Despite the increase in unionization, the share of national income allocated to labor remained virtually unchanged during this period.

Question 4

List some factors that might make the threat of a strike more effective.

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Question 5

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

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Question 6

To the extent that unions can transfer profits from unionized employers to union workers, they will

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When unions transfer profits to workers, it can reduce the funds available for employers to invest in capital and research, thus reducing their incentive to do so.

Question 7

Why is it that the airline pilots union will likely be stronger and more effective than the fruit pickers union?

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The answer of Why is it that the airline pilots...

Question 8

What is the primary source of higher real wages?

Accepted Answer

Higher real wages are primarily driven by increases in productivity, as more efficient production allows for higher output and, consequently, the ability to pay workers more without causing inflation.

Question 9

As the percentage of the labor force belonging to a union fell in the United States during the 1955 through early 2000 period, the share of national income going to labor

Accepted Answer

The share of national income going to labor remained approximately the same despite the decline in union membership, as other factors such as productivity and economic growth influenced income distribution.

Question 10

In a strike, what does the union have to lose? What does management lose?

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The answer of In a strike, what does the union...

Question 11

A former union employee states: "We were on strike for two years. I know the eventual wage increase we received will never make up for the wages I lost, but I think the strike was worth it. We forced the company to give in to our demands." Evaluate these comments.

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The answer of A former union employee states: "We were...

Question 12

Regarding the impact of unions on wages of all workers, which of the following statements is correct?

Accepted Answer

Unions have no impact on the share of output going to capital.

Question 13

An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because

Accepted Answer

Greater unionization does not imply higher average wages.

Question 14

The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955. During these 25 years, the share of national income allocated to labor (in contrast to capital)

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The answer of The share of the labor force that...

Question 15

Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?

Accepted Answer

If a union can transfer profits from a unionized employer to union workers, the employer's costs will increase, leading to reduced investment expenditures as the employer seeks to maintain profitability.

Question 16

What common goals, if any, do labor and management share?

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Question 17

Which of the following statements is true concerning the impact of unions on wages of all workers?

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Question 18

Union membership has fluctuated during the last several decades. Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

Accepted Answer

The share of output going to labor has remained relatively constant despite fluctuations in union membership, indicating other factors influencing labor's share of output.

Question 19

Measured as a share of the labor force, union membership was at its highest level in the United States during the

Accepted Answer

Union membership in the United States was at its highest level as a share of the labor force during the 1950s, following the post-World War II economic expansion.

Question 20

If a firm operates in a competitive industry and its unionized labor force is successful in bargaining for a wage increase, where is the firm likely to get the money to pay the higher wages?

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The answer of If a firm operates in a competitive...

Quiz 9: Price Takers and the Competitive Process