Multiple Choice Quiz


1	The percentage of the total workforce represented by a union is
		A)	less than 5%.
		B)	between 5 and 10%.
		C)	between 20% and 30%.
		D)	above 30%.


2	Prior to the 1930s
		A)	unions were more powerful than they are today.
		B)	workers had few rights to unionize or collectively bargain .
		C)	union power and union member rights were nearly identical to what they are today.
		D)	there were no unions nor attempts to form them.


3	Unions exists because
		A)	it is easier for bosses to negotiate with them than with individuals.
		B)	members make more than they could if there were no unions.
		C)	companies form them to control workers.
		D)	government mandates their existence.


4	Monopsony in labor markets occurs when
		A)	there are many buyer of labor and many sellers of labor.
		B)	there are many sellers of labor but only one buyer of labor.
		C)	there is one seller of labor but only one buyer of labor.
		D)	businesses compete with others to lure workers with high wages.


5	When there is a monopoly in the labor market the wage paid to workers is
		A)	equal to their marginal revenue product.
		B)	less than their marginal revenue product.
		C)	greater than their marginal revenue product.
		D)	unrelated to their marginal revenue product.


6	Unions that restrict quantity via licensing and apprenticeships serve to ____ for those workers
		A)	reduce supply
		B)	increase demand
		C)	make the supply perfectly inelastic at the number of licenses granted
		D)	all of these


7	Unions that restrict quantity via licensing and apprenticeships serve to
		A)	raise wages for those workers.
		B)	lower wages for those workers.
		C)	leave wages unchanged for those workers.
		D)	increase the equilibrium number of workers hired.


8	Unions ________ which causes union wages to be higher than they would be without them.
		A)	exercise monopsony power
		B)	exercise monopoly power
		C)	exercise complete control over business
		D)	let markets function unfettered


9	The political party most identified with passing laws to increase union bargaining power is the
		A)	Republican Party.
		B)	Democratic Party.
		C)	Libertarian Party.
		D)	Conservative Party.


10	Union membership is most prevalent in
		A)	government jobs.
		B)	service jobs.
		C)	jobs held by women.
		D)	jobs held by those with pos-graduate degrees.

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