ECON 3200 Chap 10-12 Exam Questions with Correct Answers Latest Update 2026/2027
From 1970 to the present, union membership in the United States has: - Answers Decreased
A yellow dog contract: - Answers stipulates that an individual will not join a union as a condition
of employment.
Which of the following is not a major piece of federal legislation regarding the relationship
between private-sector firms and unions? - Answers The Kenesaw Mountain Landis Act of 1922
A worker is more likely to join a union: - Answers if the union-bargained wage-employment
package raises his or her utility.
Most unions have a preference for: - Answers higher wages and higher employment levels.
A union will likely be more effective at bargaining for a wage increase: - Answers the less elastic
is the demand for the product.
Compared to the wage-employment outcome generated by a monopoly union, a Pareto-
improving efficient outcome: - Answers is any point on the contract curve that is also in the area
encompassed by the isoprofit line and the union's indifference curve passing through the
monopoly union outcome.
The firm's isoprofit curves in wage-employment space: - Answers cross the labor demand curve
at maximum points on the various isoprofit lines.
An efficient contract occurs at the: - Answers tangency between the union's indifference curve
and the isoprofit line.
Enduring a strike may be an optimal behavior by the firm if: - Answers there is incomplete
information between the union and the firm when wage negotiations take place.
Which of the following is a reason why the observed union wage gap might underestimate the
actual effect unions have on wages? - Answers Wage calculations fail to take into account the
value of fringe benefits.
In a competitive spot labor market: - Answers the interaction of workers (who decide how many
hours to work) and firms (that decide how many workers to hire at given wages) determines the
equilibrium wage and employment in each period.
Paying workers according to their own individual production would work best for which of the
following occupations? - Answers Taxicab drivers
Which of the following pay schemes is intended to elicit more effort from workers? - Answers
All of the above are intended to elicit more effort from workers.
Under fairly straightforward conditions, the utility of piece-rate workers depends on their ability
From 1970 to the present, union membership in the United States has: - Answers Decreased
A yellow dog contract: - Answers stipulates that an individual will not join a union as a condition
of employment.
Which of the following is not a major piece of federal legislation regarding the relationship
between private-sector firms and unions? - Answers The Kenesaw Mountain Landis Act of 1922
A worker is more likely to join a union: - Answers if the union-bargained wage-employment
package raises his or her utility.
Most unions have a preference for: - Answers higher wages and higher employment levels.
A union will likely be more effective at bargaining for a wage increase: - Answers the less elastic
is the demand for the product.
Compared to the wage-employment outcome generated by a monopoly union, a Pareto-
improving efficient outcome: - Answers is any point on the contract curve that is also in the area
encompassed by the isoprofit line and the union's indifference curve passing through the
monopoly union outcome.
The firm's isoprofit curves in wage-employment space: - Answers cross the labor demand curve
at maximum points on the various isoprofit lines.
An efficient contract occurs at the: - Answers tangency between the union's indifference curve
and the isoprofit line.
Enduring a strike may be an optimal behavior by the firm if: - Answers there is incomplete
information between the union and the firm when wage negotiations take place.
Which of the following is a reason why the observed union wage gap might underestimate the
actual effect unions have on wages? - Answers Wage calculations fail to take into account the
value of fringe benefits.
In a competitive spot labor market: - Answers the interaction of workers (who decide how many
hours to work) and firms (that decide how many workers to hire at given wages) determines the
equilibrium wage and employment in each period.
Paying workers according to their own individual production would work best for which of the
following occupations? - Answers Taxicab drivers
Which of the following pay schemes is intended to elicit more effort from workers? - Answers
All of the above are intended to elicit more effort from workers.
Under fairly straightforward conditions, the utility of piece-rate workers depends on their ability
