Studies by Farber and by Freeman suggest that: managerial opposition his been st
ID: 1100382 • Letter: S
Question
Studies by Farber and by Freeman suggest that: managerial opposition his been steady over the years, and has not contributed to the decline of unionization about 40% of unions' decime can be explained by structural changes in the economy shrinking union wage premiums have made it easy for firms to employ anti-union tactics recent NLRB rulings have been increasingly favorable to unions and should slop the decline in their membership In response to declines in membership, unions hive recently: avoided labor organization mergers ensified attempts to organize blue-collar workers as opposed to white-collar workers given increased priority to wage increases and put less emphasis on non-wage issues substituted work slowdowns for strikes as a way of preventing replacement by permanent strikebreakers Economists typically believe that the goal of a union is to: maximize the total employment of its members maximize the total wage income of its members bargain for the highest wage possible increase both the wages and employment of its members The "monopoly union" model assumes that the union: faces a wage-employment tradeoff given as the firm's demand for labor curve will be able to increase both the wages and employment of its members will attempt to negotiate an "efficient contract" with the firm attempts to maximize the wage rate Questions 35 and 36 refer to the following graph, in which Wc is the competitive wage and Ic is the union's utility level at the competitive wage and employment level. If this market is best represented by the "monopoly union" model, the union will bargain for. Wa and the firm will respond by hiring Q1 workers Wb and the firm will respond by hiring Q2; workers Wa and the firm will respond by hiring Qc. workers Wb and the firm will respond by- hiring Qc. workers The wage/employment combination given by Wb/Q2; is: efficient inefficient in that a slightly lower wage and slightly more employment would leave both the firm and the union better off inefficient in that a slightly higher wage and slightly less employment would leave both the firm and the union better off inefficient in that firm profits are lower than they would be at Wc.Qc; Questioni 37 - 40 refer to the following graph. in which pi1 and pi2 are a firm's isoprofit curves. The monopoly union outcome is given by po ubar. Which of the following is a true statement? If the firm pays: Wx and employs Qx workers, its profit will be lower than at ubar Wx and employs Qx workers, its profit will be higher than at ubar Wy and employs Qy workers, its profit will be lower than at ubar Wx and employs Qx workers, its profit will be lower than if it pays Wy and employs Qy. Workers Which of the following is a true statement? The union is indifferent between outcomes: ubar and x ubar and y x and y ubar and any other outcome along the isoprofit line pi1 An efficient labor contract entails a po on the labor demand curve corresponding to a wage of Wx a po on the labor demand curve corresponding to a wage of Wy a wage of W, and employment of Qx wage and employment levels along the line xy Compared to the monopoly union outcome, wage and employment contracts along the bargaining curve between x and y entail: higher utility to the union and higher profits to the firm higher utility to the union but lower profits to the firm higher profits to the firm but lower utility to the union lower utility to the firm and lower profits to the firm A strongly efficient union contract: pays a wage equal to the monopoly union wage pays a wage equal to the competitive wage sets employment at the monopoly union level sets employment at the competitive level Which one of the following union lobbying activities, if successful, would increase the demand for union labor? Lobbying for legislation that: raises the price of a substitute resource raises the price of a product or service complementary to that produced by the union repeals the Davis-Bacon Act raises the price of a complementary resource A union might attempi lo raise both lhe wage rile and employment of its members by: lobbying for state licensing requirements for union jobs arguing for casing oi immigration, restriction increasing the demand for the good ur service dial the union produces attempting to raise the price of complementary inputs A union will most likely attempt to restrict the growth of labor supply if: the labor supply curve is very inelastic the labor demand curve is very inelastic there is a very low rate of growth of labor demand there is a very elastic supply of a production substitute for union labor Which of the following actions might a union use to try to restrict the growth of labor supply? Increase product demand Reduce the number of qualified workers Enhance worker productivity Reduce the wage for nonunion labor The employment impact of a union imposed above-equilibrium. wage will tend la be greater the longer the amount of time tine transpires i f there is a union shop clause is the labor contract the more inelastic the labor supply the more inelastic the labor demand According to models of asymmetric information, strikes are more likely when: firm profitability is highly variable and uncertain there is less democracy in the union union leaders have less in formation regarding firm profitability than ihr rank and the members none of the aboveExplanation / Answer
31.a
32.c
33.b
34.d
35.b
36.a
37.c
38.b
39.c
40.b
41.d
42.d
43.b
44.b
45.a
46.c
47.d