Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 19, Problem 7DQ
To determine
Explain why unions stood strong against the airlines.
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small hospital in rural Alaska is a monopsony employer of nurses. The nurses unionize. They have little power at the bargaining table, but they do bargain for a slightly higher wage. What happens to the number of nurses employed? What happens to labor costs and marginal labor costs?
Suppose that a car factory initially hires 1,600 workers at $20 per hour and that each worker works 40 hours per week. Then the factory unionizes, and the new union demands that wages be raised by 25 percent. The firm accedes to that request in collective bargaining negotiations but then decides to cut the factory’s labor force by 30 percent due to the higher labor costs.
Contrast the Knights of Labor with the AFL.
Chapter 19 Solutions
Economics: Principles & Policy
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- 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_forwardtrue or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.arrow_forwardMaria is an industrial engineer at a Nissan plant. Using the interdependence principle, explain why and how she should change production plans if one of her engine suppliers cuts the price they charge Nissan by 50%. What about if workers unionize and demand a 12% across-the-board pay raise?arrow_forward
- Are unions and technological improvements complementary? Explain why or why not.arrow_forwardWhat is the principle strategy of an inclusive (industrial) union in order to increase the wages of its members?arrow_forwardUnder the Wagner Act (NLRA), the only time workers are entitled to union representation is when the union has the support of the majority of workers at the workplace. False Truearrow_forward
- The South African economy has been struggling for a number of years. This has (in part) led to continued increases to the price of fuel and subsequently an increase ‐ to the cost of living. Understandably, unions have been at the forefront in fighting for living wages for their members,both in terms of legislated minimum wages and annual wage increases during collective bargaining. Critically discuss how union demand for increased wages may add to tensions between government and organised labour.(15 bullets)arrow_forwardUnion shops are subject to potential competition Multiple Choice Since most union members do not take strikes seriously. Because some union shop workers refuse to join the union. Since striking union members may be ordered back to work by the president. From replacement or substitute workers.arrow_forwardOrganizational Structure and Functions of Unions in Canadaarrow_forward
- Labor unions help negotiate with workers as a group rather than individuals. These negotiations between unions and firms are sometimes referred to as: Select the correct answer below: labor compromises O negotiation tactics collective bargaining labor reportingarrow_forwardWhich of the following is a possible explanation for the decline in union membership since the 1970s? Question 14 options: Increased global competition. U.S. laws make it difficult for unions to organize. U.S. workers see less need for labor unions. All of the above.arrow_forwardContrast the methods used by inclusive unions and exclusive unions to raise union wage rates.arrow_forward
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