Chapter 14 Microeconomics

Of the many available policies to reduce discrimination by race and gender in the U.S. labor market, the most controversial is likely to be

affirmative action goals and quotas

If U.S. immigration consists of mainly low-skilled workers, then an increase in immigration_ the wages of low-skilled workers.

will reduce

A _ is an organization of workers that negotiates with employers as a group over wages and working conditions.

labor union

As a result of the American workers' ability to sell their labor though a union, profit-making firms must pay wages

exceeding the equilibrium wage those firms would otherwise have selected.

From a competitive firms' point of view, the key question regarding the higher wages paid to union workers is whether the higher wage level

is matched with higher productivity.

Union membership has in the United States because of.

fallen; laws enacted making it more difficult to unionize

If immigration consists of mainly high-skilled workers, then a(n) in immigration will the wages of high-skilled workers.

decrease, increase

Discrimination in labor markets arises if, as measured by education, receive different pay because of their.

workers with the same skill levels; race or gender

Which of the following is most likely to have a large union membership that experiences little import competition?

police services

If an economist were to disregard unionized government employees, then current U.S. labor market statistics would show that

8% of the workers employed by private firms work for a union.

If no union existed, the equilibrium salary for economics professors will be

$80,000

Say the average increase in pay for non-union workers in 2011 is 2% across the U.S. If a workers' union successfully negotiates a 3-year collective agreement that provides a 4.5% raise in 2011, and a 4.3% raise in 2013, then the for-profit employer will typically

curtail expansion of labor as a trade-off.

Which of the following industries is the least likely to employ a unionized labor force?

finance, insurance and real estate

In order to provide its workforce with an alternative to forming a union, the U.S. government passed laws about work conditions, namely,

minimum wage and employment insurance. And. workplace safety regulations. And. regulation of workers' pensions. And. overtime

What Act was passed to allow American workers to opt out of the union in their workplace?

Taft-Hartley Act of 1947

Unions can be perceived as being economically harmful when they A. strike infrequently B. successfully negotiate higher wages C. support modernization and new technology D. none of the above

none of the above

Computers and software cost $5,000 each and must be replaced each year. After the introduction of a strong union, the annual salary for workers increases to $30,000. In these circumstances, the optimal choice from a cost perspective for the city government is

Choice C

With regard to labor unions, which of the following is an accurate statement?

membership is lower for agriculture or service-oriented jobs

The proportion of workers in a number of the world's high-income economies who belong to unions, when compared to unionized workers in the U.S., is

very high.

The Taft-Hartley Act made the legal climate, and union membership levels.

less encouraging to union movements; soon started declining

Negotiations between unions and a firm or firms is called _ .

collective bargaining

Union members earn than non-union members, even after adjusting for factors such as.

about 20% more; years of work experience and education level.

Computers and software cost $5,000 each and must be replaced each year. In a non-unionized labor market, workers are paid $20,000 per year. In these circumstances, the optimal choice from a cost perspective for the city government is

Choice A

The percentage of workers belonging to a union is higher in the

45-64 age range.

In the U.S. manufacturing sector, unionized jobs have_ in recent years.

have trended down

If unions help workers secure pension benefits, so that those workers are less dependent on government social assistance after their retirement, then

the union is economically beneficial.

The existence of labor unions forces employers to deal with workers _.

collectively, rather than as individuals

In the United States, worker membership in labor unions has been

steadily declining for 50 years.

Discriminatory impulses in the labor market can emerge at a number of levels:

among managers. And. among workers. And. among customers

The costs that immigrants impose on governments arise mainly in terms of, which are primarily the responsibilities of the government(s).

public schools and healthcare, state and local

A labor union seeks to _ between employers and workers.

change the balance of negotiations

Which of the following arguments would most likely be presented by a critic of labor unions?

unions can prohibit economic growth if new technology is blocked

In the United States, the number of unionized government jobs has .

increased modestly

There is sufficient evidence showing that union workers in the manufacturing sector generally

have higher productivity than non-union workers.

Of all the available policies to reduce discrimination by race and gender, the costliest is likely to be:

improved educational opportunities

_ involves active efforts to improve the job opportunities or outcomes of minority groups or women.

Affirmative action