Microeconomics (Book Only)
12th Edition
ISBN: 9781285738307
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 14, Problem 5VQP
To determine
Distinguish the effects of changes in the supply and wages of a unionized sector to a non-unionized sector.
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5. Exclusive, or craft, unions - Reducing labor supply
Consider a small town economy with only two sectors: coal mining and logging. Both sectors are perfectly competitive, and workers are equally able
and willing to work as miners (coal industry) and lumberjacks (logging). Only outside companies demand the coal and wood produced in the city, so
changes in the domestic labor market do not affect the product demand curve in either sector.
Suppose a union forms in the logging industry. The union limits its membership to less than the number of workers employed before the union formed
and forces all employers in the industry to hire only union workers.
Show the effect of unionization in the logging sector on the labor market for miners.
Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move the curve and it snaps back to its original
position, just try again and drag it a little farther.
(?
Labor supply
Labor demand
Labor supply
Labor…
Now show the effect of unionization in the coal mining sector on the market for wood.
PRICE OF WOOD
As a result of the unionization:
I
Supply
Demand
QUANTITY OF WOOD
The price of coal will increase and the price of wood will decrease
The price of coal will decrease and the price of wood will decrease
The price of coal will decrease and the price of wood will increase
The price of coal will increase and the price of wood will increase
Are unions and technological improvements complementary? Explain why or why not.
Chapter 14 Solutions
Microeconomics (Book Only)
Ch. 14.2 - Prob. 1STCh. 14.2 - Prob. 2STCh. 14.2 - Prob. 3STCh. 14.3 - Prob. 1STCh. 14.3 - Prob. 2STCh. 14.3 - Prob. 3STCh. 14 - Prob. 1VQPCh. 14 - Prob. 2VQPCh. 14 - Prob. 3VQPCh. 14 - Prob. 4VQP
Ch. 14 - Prob. 5VQPCh. 14 - Prob. 1QPCh. 14 - Prob. 2QPCh. 14 - Prob. 3QPCh. 14 - Prob. 4QPCh. 14 - Prob. 5QPCh. 14 - Prob. 6QPCh. 14 - Prob. 7QPCh. 14 - Prob. 8QPCh. 14 - Prob. 9QPCh. 14 - Prob. 10QPCh. 14 - Prob. 11QPCh. 14 - Prob. 12QPCh. 14 - Prob. 13QPCh. 14 - Prob. 1WNGCh. 14 - Prob. 2WNGCh. 14 - Prob. 3WNG
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Similar questions
- Explain the craft union model, industrial union model, and demand enhancement model. Give examples of each and discuss the success unions have had in achieving their goals.arrow_forwardWhich of the following describes the effect of the changes in the manufacturing labor market on the market for service workers, which is not unionized? Check all that apply. The wage of service workers will fall. The supply of service workers will remain unchanged. The demand for service workers will remain unchanged. There will be an increase in employment in the service sector.arrow_forwardWhich of the following is an example of pork barrel spending? Select the correct answer below: O funding for a city that received extensive damage from a tornado O funding for the military in order to update equipment O funding for a grant that explores alternative energy sources O funding for a bridge requested by the U.S. representative who represents the area where the bridge will be builtarrow_forward
- Contrast the methods used by inclusive unions and exclusive unions to raise union wage rates.arrow_forwardDoes job control unionism promotes workplace justice, or is it simply a form of worker control Which work environments or industries might benefit from job control unionism? Is there still a need for job control unionism today, or has it outlived its usefulness?arrow_forwardSuppose the union’s resistance curve is summarized by the following data. The union’s initial wage demand is $10 per hour. If a strike occurs, the wage demands change as follows:Length of Strike: Hourly Wage Demanded1 month $92 months 83 months 74 months 65 or more months 5Consider the following changes to the union resistance curve and state whether the proposed change makes a strike more likely to occur, and whether, if a strike occurs, it is a longer strike.a. The drop in the wage demand from $10 to $5 per hour occurs within the span of two months, as opposed to five months.b. The union is willing to moderate its wage demands further after the strike has lasted for six months. In particular, the wage demand keeps dropping to $4 in the sixth…arrow_forward
- true or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.arrow_forwardWhich of the following statements is most accurate? Unionization almost always results in improvements to workplace productivity The effects of unionization on productivity are mixed; sometimes it results in an increase and sometimes it results in a decrease Unionization generally has no effect on workplace productivity Unionization almost never results in improvements to workplace productivityarrow_forwardWorkers walk away from their jobs and refuse to return until the issue at hand has been resolved. This situation best describes which of the following union tactics? Choose one answer .a. Picketing Boycott Strike Lockoutarrow_forward
- Two presidents named Roosevelt helped promote the acceptance of unions. What did Theodore Roosevelt do in 1902 to promote unionism? More importantly what did Franklin Roosevelt do in the mid-1930s?arrow_forwardWhat percentage of wage and salary workers are union members? Is this percentage higher, or is it lower, than in previous decades? Which of the factors explaining the trend do you think is most dominant?arrow_forwardDescribe the economic impact of strikes.arrow_forward
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