1. Which of the following is a powerful weapon that has
served to increase the
bargaining power of labor unions?
a. right-to-work laws
b. the strike
c. the lockout
d. section 14B of the Taft-Hartley Act
2. Since the demand for a narrowly defined product class (Fords, for example) is more
elastic than the demand for a broadly defined product class (all automobiles), a
union will be better able to raise the wages of its members without causing a
reduction in their employment when
a. it can organize an entire industry, rather than just selective firms within the
b. it concentrates its organizational efforts on a single firm, ignoring the rest
of the industry.
c. the demand for the product is highly elastic.
d. there are many good substitutes for union labor.
3. Which of the following would provide a check that limits the power of a union?
a. union shop provisions
b. foreign competition in the product market
c. a highly inelastic demand for the product
d. All of the above are correct.
4. In the early 1990s, which of the following countries had the smallest percent of
its labor force unionized?
a. United States
5. When a union successfully raises the wages of its members, it will also
a. increase total productivity, which must rise in proportion to the wage rate.
b. encourage employers to find a substitute for the union labor.
c. raise the wages of non-union workers.
d. increase the share of income allocated to labor as opposed to capital.
6. As the football season approaches, the threat of a player strike would give
a. both players and management an incentive to bargain seriously.
b. only the players an incentive to bargain seriously.
c. only management an incentive to bargain seriously.
d. neither party much incentive to bargain seriously.
7. 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)
a. remained virtually constant.
b. increased approximately 10 percent.
c. increased between 15 and 25 percent.
d. increased 17.6 percent.
8. Laws that prohibit union shop provisions are called
a. Taft-Hartley statutes.
b. right-to-work laws.
c. yellow dog contracts.
d. social legislation.
9. An increase in the percentage of the labor force that is unionized will cause
average wages for all workers to rise because
a. union labor is more productive.
b. profit levels are lowered to increase wages.
c. strike threats promote wage increases.
d. This is a trick question because greater unionization does not imply higher
10. Which of the following is true?
a. Women are more highly unionized than men.
b. A higher percent of white workers belong to unions than do black workers.
c. The proportion of government employees belonging to a union is substantially
higher than the proportion of private-sector workers who are union members.
d. There is little difference in incidence of unionization among occupational