Trade Unions in the Labor Market: Roles and Influence

The video explores the role of trade unions in the labor market, detailing their objectives, such as protecting worker rights and improving wages through collective bargaining. It discusses the decline in trade union membership in the UK and analyzes the impact of trade unions on both perfectly competitive and monopsonistic labor markets. The video also presents arguments for and against trade unions, considering their effects on employment and wages, and evaluates their activity in terms of labor demand elasticity.

What is one of the primary roles of trade unions?

• To increase company profits

• To protect and improve workers' rights

• To reduce government regulations

• To promote international trade

How do trade unions typically achieve their objectives?

• By individual negotiations

• Through collective bargaining

• By reducing wages

• Through government intervention

Which of the following is an example of a trade union in the UK?

• The Bank of England

• The British Broadcasting Corporation

• The National Health Service

• Unite

What has been a significant trend in trade union membership in the UK since 1976?

• No change

• A significant decline

• A steady increase

• A rapid increase

What is one reason for the decline in trade union membership?

• Increased labor market flexibility

• Decreased employment legislation

• Higher union fees

• More government support for unions

In a perfectly competitive labor market, what is the effect of trade unions increasing wages above the equilibrium?

• Increased employment

• Decreased unemployment

• Higher firm profits

• Real wage unemployment

What is a bilateral monopoly in the context of labor markets?

• Multiple buyers and sellers

• One buyer and one seller

• One buyer and multiple sellers

• Multiple buyers and one seller

What is one argument in favor of trade unions?

• They reduce worker productivity

• They limit economic growth

• They increase employment levels

• They decrease wages

What is one argument against trade unions?

• They decrease barriers to entry

• They increase labor market flexibility

• They reduce cost-push inflation

• They cause real wage unemployment

How does the wage elasticity of demand affect the impact of trade unions?

• It changes the equilibrium wage rate

• It influences the number of trade unions

• It determines the level of government intervention

• It affects the degree of unemployment caused