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Worksheets2156 - Midterm 2 Review
Total questions: 16
Worksheet time: 25mins
What is the percentage change in union density in the base and the final periods? (Ignore the percent sign in your answer)
(a)
What is the percentage change in union density due to structural change in the composition of employment? (Ignore the percent sign in your answer)
(a)
Match the following four axioms of the Nash's bargaining solution with their definitions:
Only Pareto-efficient bargains will be agreed to.
Pareto efficiency
If the feasible bargaining, S, is symmetric, the solution will give equal utility increments to both parties.
Symmetry
The solution is NOT altered by linear transformations of the utility function of either party.
Transformation invariance
If the parties chose outcome A from all the alternatives in the set S, then the same outcome should be chosen from the set T, which is a subset of S.
Independence of irrelevant alternatives
Following are the activities that attempt to alter the constraint focus on the product market EXCEPT:
Opposition to regulation
Support for quotas, tariffs, and other restrictions on foreign competition
Advertising of the product by attaching a union label on the product
Attempting to organize all the firms in an industry
The contract curve is the locus of the Pareto-efficient (or Pareto-optimal) wage-employment outcomes, which are characterized by the points where the union's indifference curve being tangent to the firm's isoprofit curve.
TRUE
FALSE
The isoprofit curve and the demand for labour curve intersect at the maximum point of the demand for labour curve.
TRUE
FALSE
Mary and Jane have $200 to share. In the first bargaining round, Mary will propose how to share this sum, and Jane can either accept or reject Mary's proposal. If an agreement is not reached in the first round, there will be $175 to share in round 2 when Jane will propose how to share this sum, and Mary can either accept or reject Jane's proposal. If an agreement is not reached in round 2, each player will receive $50. According to Rubinstein's bargaining model, in the bargaining solution, Mary will propose that she would get how many dollars out of $200 in the first round. Ignore the dollar sign in your answer.
(a)
In a basic model of wage and employment determination, the union stipulates the wage. The firm then responds by choosing an employment level that maximizes
Profit
Labour costs
Wage
Strike duration
Output
(a) is the percentage of paid workers whose wages and working conditions are covered by a collective agreement.
(b) defines the union membership as a percentage of paid workers.
Union's objective is met through (c) and the outcome in an agreement specifying wages, benefits, and aspects of employment relations.
An electricians' union is an example of (a)
Suppose in an industry, firms operate in a perfectly competitive product market and hired labour in a perfectly competitive labour market. Market labour demand is given by: LD=104-5W, and the supply function of labour is LS=20+W. What will be the amount of excess supply of labor if the minimum wage required by the legislation is $12?
(a)
Canadian data on unionization rate indicate all of the following, except:
Full-time workers are more likely to be unionized than part-time workers.
There are significant differences in unionization across provinces.
Males are no longer more unionized than females.
Workers in small establishments are more likely to be represented by a union than those in large establishments.
The contract curve lies to the right of the labour demand curve.
TRUE
FALSE
Which of the following statements is FALSE?
The contract curve lies to the left of the labour demand curve.
Efficient contracts are often associated with work rules.
Efficient contracts typically involve excessive staffing levels.
The efficient contracts are the set of Pareto-efficient combinations of wage and employment levels.
For a monopsonistic firm, under the minimum wage legislation, if the minimum wage is higher than the monopsonistic wage but lower than the competitive wage, then the employment level is lower than in the case without the minimum wage.
TRUE
FALSE
Examples of union benefits include higher wages, non-wage benefits, greater employment security.
Examples of union costs include union dues and potential loss of income due to union activities.
TRUE
FALSE
