9.2 Labor Unions and Regulations

What is the primary purpose of government regulation in labor markets?

• To increase unemployment

• To ensure fair wages and working conditions

• To reduce competition

• To promote monopolies.

Labor laws are designed to protect workers from unsafe working conditions. Which of the following is a common regulation? A) Minimum wage B) Maximum working hours C) Safety standards D) All of the above. Fill in the blank: Labor laws include _________.

• Minimum wage

• Maximum working hours

• Safety standards

• All of the above.

What is the primary purpose of a labor union?

• To increase its members' wages and improve working conditions

• To decrease the demand for labor

• To increase the supply of labor

• To reduce the cost of goods.

A labor union can try to _______ the demand for its labor.

• decrease

• increase

• eliminate

• ignore

What did the Taft-Hartley Act of 1947 make illegal?

• Open shops

• Closed shops

• Right-to-work laws

• Union dues

The Taft-Hartley Act gave states the right to pass ________ laws, which prohibit employers from requiring employees to join a union.

• closed shop

• open shop

• right-to-work

• union dues

What is a 'union shop'?

• A place where unions meet

• An organization that requires employees to join the union within a certain period after being hired

• A type of retail store

• A government office.

Labor unions work by gaining control over the ______.

• supply of labor

• demand for products

• government policies

• international trade

Which of the following statements is true about the effect of unions on wages?

• Unions have no effect on wages.

• Union workers usually earn less than nonunion workers.

• Union workers usually earn more than nonunion workers.

• Nonunion workers earn more than union workers.

If a union is able to command higher wages, the employer will seek to reduce its number of ______.

• products

• employees

• customers

• suppliers