Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Question
Chapter ST9, Problem 3CQ
To determine
Major effect on the wages of union members when they are unable to organize all firms.
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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.
Describe the economic impact of strike
Describe the two basic strategies of unions in increasing wage rates for their members.
Chapter ST9 Solutions
Economics: Private and Public Choice
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Similar questions
- What is the long-term trend in American union membership?arrow_forwardTwo 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_forwardaddress the following prompt: Explain the paradox that establishing a union can increase both wages and employment, but once the union is established it must trade off increases in one for the other.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_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_forwardHand written solutions are strictly prohibitedarrow_forward
- Consider a union that bargains over Wages (W) and employment (E). 1. Draw a diagram that illustrates the set of efficient contracts. Be sure your diagram also includes: at least 2 firm isoprofit curves; at least 2 union indifference curves; the labour demand curve 2. Now describe the location of the contract curve relative to the labour demand curve and the isoprofit curves and explain the intuition behind this location on the grapharrow_forwardA labour union represents its workers in negotiations with a firm. Explain fully the factors that you think would be included in the objective functions for a union and firm respectively. Discuss whether the objectives that you identified are competing or complementary.arrow_forwardconsider a economy where there is initially no labour unions. When labour unions are introducted, they successfully bargain collective agreements in about half of firms in the economy. using supply and demand curves can you show me how the effects of these unions on wage and employment. Would be helpful if you can provide a graph as well.arrow_forward
- Part I: Suppose the firm's labor demand curve is given by: w = 60 – 0.03E where w is the hourly wage andE is the level of employment. Suppose also that the union's utility function is given by: U = w x E The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?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_forward
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