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Multiple Choice Quiz
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1

From 1970 to the present, union membership in the United States has
A)increased.
B)decreased.
C)remained relative constant.
D)shown no consistent pattern across countries.
2

A yellow dog contract
A)stipulates that an individual will not join a union as a condition of employment.
B)stipulates that a union member will support a union's decision to strike.
C)is a secret agreement with a firm by a union member to not join a strike by fellow union members.
D)prohibits unions from striking.
3

Which of the following is not a major piece of federal legislation regarding the relationship between private-sector firms and unions
A)The Norris-LaGuardia Act of 1932.
B)The Keesaw Mountain Landis Act of 1922.
C)The Taft Hartely Act of 1947.
D)The Wagner Act of 1935.
E)The Landrum-Griffin Act of 1959.
4

A worker is more likely to
A)join a union if the union bargained wage-employment package raises his or her utility.
B)benefit from joining a union if the demand for labor is relatively inelastic.
C)benefit from joining a union if the demand for labor is relatively elastic.
D)both (A) and (B).
E)both (A) and (C).
5

It could be argued that most unions have preferences for
A)higher wages and lower employment levels.
B)higher wages and higher employment levels.
C)lower wages and lower employment levels.
D)lower wages and higher employment levels.
6

The demand for engineers
A)is downward sloping because it is profitable for firms to hire more engineers when their wages are low.
B)depends on the value of engineering services.
C)is likely to be lower when the government decides not to build a supercollider.
D)all of the above.
7

The decline in unionization in the U.S. since the mid-1960's can be attributed, in part, to
A)a migration of firms from the North and East to the South and West.
B)a decline in the number of blue collar jobs.
C)an increase in the female participation rate.
D)an increase in anti-union tactics by management as a result of foreign competition.
E)all of the above.
8

The isoprofit curve
A)shows all the wage-employment combinations that yield the same level of profit for a firm.
B)crosses the labor demand curve at its maximum.
C)indicates a higher level of profit as it moves further to the northwest when wages are on the y-axis and employment is on the x-axis.
D)both (A) and (B).
E)all of the above.
9

A union would be more effective at bargaining for a wage increase
A)the greater the substitutability between labor and capital.
B)the less elastic the demand for the product.
C)the greater the share of labor costs in total costs.
D)the more elastic the supply of capital.
10

An efficient contract occurs at the
A)tangency between the unions indifference curve and the isoprofit line.
B)tangency between the unions indifference curve and the labor demand.
C)tangency between the firm's isoprofit line and the labor demand curve.
D)intersection between the firm's isoprofit line and the labor demand curve.
E)none of the above.





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