LABOR ECONOMICS (LL+ACCESS)
8th Edition
ISBN: 9781264909339
Author: BORJAS
Publisher: MCG
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Chapter 3, Problem 3P
To determine
Find the workers in which firm are more likely to organize and form a union.
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Students have asked these similar questions
Contrast the Knights of Labor with the AFL.
Firm would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers ifthe wage rate is $15. Firm B will hire 30,000 workers if the wage is $20 but will hire 33,000workers if the wage is $15. The workers in which firm are more likely to organize and forma union?
What happens when a firm does not agree to the wages the employees of a union demand?
Select the correct answer below:
Nothing. The union workers do not have the ability to negotiate the salary.
Union workers can go on strike demanding higher wages.
Nothing. The union wages are based on a contract so they can't negotiate higher wages.
The firm does not have the option to disagree, it must meet the wage demands of the union.
Chapter 3 Solutions
LABOR ECONOMICS (LL+ACCESS)
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- Are unions and technological improvements complementary? Why or why not?arrow_forwardOrganizational Structure and Functions of Unions in Canadaarrow_forwardWhich of the following are reasons why union membership is in decline in the United States? Choose all that apply. a Public opinion of unions has declined as many factories have moved overseas for cheaper labor costs. b Many employers are opposed to their employees joining a union. c Union members generally earn less and have poorer working conditions than those who are not in unions. d Employment patterns have changed in the United States since the time when unions reached their peak.arrow_forward
- Nextarrow_forwardWhich of the following is NOT a way for employees to become unionized? Select one: a. Nonunion employees may organize a union b. Employees covered by a collective bargaining agreement may decide to join the union c. Unionized employees may organize a union d. New employees may be required to join a unionarrow_forwardWhat are the benefits and pitfalls of unions?arrow_forward
- Suppose 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_forward5. 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…arrow_forward24arrow_forward
- True or False? Union wages are similar to those in a perfectly competitive market. The wage is determined by the going rate for the position.arrow_forwardIn the following table, identify which side of the labor market is affected by labor unions' practices. Practice by Labor Union Union supports legislation that reduces imports of the product produced by union labor. Union organizes training programs for new entrants. Union requires new hires to become a member within a certain time after being employed. The Demand for Union Labor The Supply for Union Laborarrow_forwardAre unions and technological improvements complementary? Explain why or why not.arrow_forward
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