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 6CQ
To determine
Reason for the increasing wage rate.
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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?
Contrast the methods used by inclusive unions and exclusive unions to raise union wage rates.
What is the principle strategy of an inclusive (industrial) union in order to increase the wages of its members?
Chapter ST9 Solutions
Economics: Private and Public Choice
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Similar questions
- Are unions and technological improvements complementary? Explain why or why not.arrow_forwardWhich 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 productivityarrow_forwardtrue or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.arrow_forward
- Are unions and technological improvements complementary? Why or why not?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_forwardPart 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_forward
- Suppose the firm’s labor demand curve is given by w = 20 - 0.01E where w is the hourly wage and E is the level of employment. Suppose also that the union’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and the marginal utility of employment is w. What wage would a monopoly union demand? How many workers will be employed under the union contract?arrow_forward(a) Would you expect unionization to cause wages to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (b) Would you expect unionization to cause the quantity of labor employed to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (c) Offer two ways that unions can increase worker productivity.arrow_forwardWhat are the benefits and pitfalls of unions?arrow_forward
- Unionized workers tend to have lower job satisfaction than nonunionized workers primarily because: They are more likely to be victims of discrimination than nonunionized workers They are working under harsher conditions and their workplace climate is less desirable They are dissatisfied with their union representation They are receiving fewer benefits such as workers compensation and unemployment insurancearrow_forwardWhat 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.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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