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| 1 | |
In the U.S., the rate of unionization is: |
| | A) | higher among whites than African Americans |
| | B) | lower than Sweden |
| | C) | greater in manufacturing than government |
| | D) | greater in the rural South than the urban North |
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| 2 | |
Which of the following facts supports the argument that unions improve overall productivity and efficiency? |
| | A) | The estimated union wage advantage is about 15% |
| | B) | Unions sometimes engage in featherbedding |
| | C) | Higher union wages leads to increased output and employment in nonunion sectors |
| | D) | The quit rate at nonunion firms is substantially higher than at union firms |
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| 3 | |
An employer whose discrimination coefficient is $4 will: |
| | A) | have no hiring preferences for African Americans or whites if the wage differential is $4 |
| | B) | hire only whites regardless of the wage differential |
| | C) | hire only whites if the wage differential exceeds $4 |
| | D) | have no hiring preferences for African Americans or whites if the wage differential exceeds $4 |
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| 4 | |
Suppose there are 200 million persons in the population, 100 million are in the labor force, and 2 million of these are transportation workers. If there are 20 million union workers overall and 1 million union workers in transportation, the unionization rate in transportation is: |
| | A) | 1% |
| | B) | 2% |
| | C) | 20% |
| | D) | 50% |
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| 5 | |
Over the last 25 years, union membership in the U.S. has been declining both absolutely and as a percentage of the labor force. |
| | A) | True |
| | B) | False |
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| 6 | |
Angela has applied for a job with an employer whose labor contract specifies an open shop. Under this provision, Angela: |
| | A) | must join the union within 30 days or pay an equivalent amount of dues to charity |
| | B) | must become a union member prior to employment |
| | C) | may or may not become a union member at her discretion; her pay will be the same regardless |
| | D) | may or may not become a union member at her discretion; her pay will depend on her choice |
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| 7 | |
Because economic discrimination arbitrarily blocks women and minorities from higher productivity jobs, discrimination: |
| | A) | creates inflation |
| | B) | reduces overall productivity |
| | C) | redistributes income but does not reduce it overall |
| | D) | moves an economy downward along its production possibilities frontier |
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| 8 | |
Countries A and B both have full employment, but wages are substantially lower in B. Migration in response to this wage differential will: |
| | A) | raise capital income in both A and B |
| | B) | reduce capital income in both A and B |
| | C) | raise capital income in A and reduce it in B |
| | D) | reduce capital income in A and raise it in B |
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| 9 | |
Within the manufacturing sector, the production mix has shifted away from heavy equipment, where the unionization rate is high, towards software, where the rate is low. This explanation of union decline is known as the: |
| | A) | substitution hypothesis |
| | B) | alternative hypothesis |
| | C) | structural-change hypothesis |
| | D) | collective hypothesis |
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| 10 | |
In the taste-for-discrimination model, a decrease in employers' collective discrimination coefficients will: |
| | A) | decrease the demand for African American workers and reduce their wages |
| | B) | increase the supply of African American workers and increase their wages |
| | C) | increase both the demand for and supply of African American workers, increasing total African American employment but reducing their wages |
| | D) | increase the demand for African American workers, increasing their wages |
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