Test on Labor Unions: History and Economic Theory

Question 1: The percentage of public sector employees in a union remained relatively constant in the United States from 1950 to 2010.

A. Yes

B. No

Explanation: The statement is false. The provided study material indicates that this statement does not describe the historical patterns of unionization in the United States, suggesting it is an incorrect description of reality.

Question 2: A theoretical explanation for why strikes occur is that the union and firm both know it is impossible to eventually negotiate an outcome on the contract curve.

A. Yes

B. No

Explanation: According to the study materials, a theoretical explanation for why strikes occur is that the union does not know how valuable labor is to the firm. The statement that the union and firm know it is impossible to eventually negotiate an outcome on the contract curve is presented as an incorrect option for explaining why strikes occur.

Question 3: Which of the following describes a significant impact of the Labor-Management Relations Act of 1947, also known as the Taft-Hartley Act?

A. It created the National Labor Relations Board.

B. It granted firms the right to require a worker to not join a union as a condition of employment.

C. It curtailed union power by permitting states to pass right-to-work laws.

D. It granted union rank and file the right to decertify its leadership via election.

Explanation: The Labor-Management Relations Act of 1947 (Taft-Hartley Act) was significant because it curtailed union power by permitting states to pass right-to-work laws. The creation of the National Labor Relations Board was associated with the National Labor Relations Act of 1935 (Wagner Act). Requiring workers not to join a union as a condition of employment relates to yellow-dog contracts, which were outlawed by the Wagner Act, not created by Taft-Hartley. While decertification of leadership may be a related concept, the study materials specifically highlight the curtailment of union power through right-to-work laws as the significance of the Taft-Hartley Act.

Question 4: Which of the following best defines featherbedding?

A. the union using its members' dues to fund political activities.

B. the union requiring the firm to hire more workers than are actually needed to perform a particular task.

C. negotiating better fringe benefits than nonunion workers.

D. one union using a previously negotiated contract as a starting point for its own negotiations.

Explanation: Featherbedding refers to the union requiring the firm to hire more workers than are actually needed to perform a particular task.

Question 5: The answer to question 17 on the Borjas8E_CH10 test is B.

A. Yes

B. No

Explanation: Question 17 in the provided answer key explicitly states that its answer is B.