Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 27.3, Problem 3ST
To determine
Explain the differences between the wage rates in the unionized sector and in the nonunionized sector.
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Economics (MindTap Course List)
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- 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_forwardAre unions and technological improvements complementary? Why or why not?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_forward
- Describe the economic impact of strikes.arrow_forwardSuppose the economy consists of a union and a nonunion sector. The labor demand curve in each sector is given by L = 1,000,000 - 20w. The total (economywide) supply of labor is 1,000,000, and it does not depend upon the wage. All workers are equally skilled and equally suited for work in either sector. A monopoly union sets the wage at $30,000 in the union sector. What is the union wage gap? What is the effect of the union on the wage in the nonunion sector?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
- Does 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_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_forwardExplain how outsourcing and third-world labor markets enter into the mix when it comes to unionizing and collective bargaining. Explain your responses and support your positions.arrow_forward
- Which 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_forwardSuppose an economy consists of a union and a nonunion sector. The labour demand curve in each sector is given by: E= 600 - 15w where w is the hourly wage and E is the level of employment. The total labour supply is inelastic and equal to 600. Workers are equally skilled and can be employed either in the union or the nonunion sector. How do you find the competitive wage in this economy?arrow_forwardUnion membership in the public sector is higher compared to the private sector even as the overall rate of unionization in the United States continues to decline. True False?arrow_forward
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