Labor Economics
Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
Question
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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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Union A wants to represent workers in a firm that would hire 20,000 workers if the wage rate is $12 and would hire 10,000 workers if the wage rate is $15. Union B wants to represent workers in a firm that would hire 30,000 workers if the wage rate is $20 and would hire 33,000 workers if the wage rate is $15. Which union is likely to or ganize?
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.
Which 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 productivity
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