Briefly and concisely define the following terms and explain their relevance to the study of economics.
a. industrial and craft unions
b. closed shop
c. union shop
d. bilateral monopoly
e. collective-bargaining agreement
What will be an ideal response?
a. Industrial unions represent all types of workers in a single industry, while craft unions represent a particular type of skilled workers. Examples of industrial unions would be those representing auto workers or coal miners. Older craft unions have represented cigar makers, electricians, and many other skilled craftsmen. Currently, the AFL-CIO includes unions of both types.b. A closed shop is an arrangement that permits only union members to be hired. Some object to this on the grounds that it gives the union too much power and prevents employers from hiring as they wish.c. A union shop is an arrangement under which nonunion workers may be hired, but they must then join the union within a specified period of time. This increases the monopsony power of the union. The Taft-Hartley Act permits state governments to ban the union shop.d. A bilateral monopoly refers to the market situation in which there are both a monopoly on the selling side and a monopsony on the buying side. In a bilateral monopoly, the wage and quantity of labor are indeterminate; their levels depend on the relative bargaining power of each side.e. Collective bargaining agreements between labor and management are complex documents covering much more than employment and wage rates. Issues involved include fringe benefits, health insurance, and grievance procedures as well as wages and hours.
You might also like to view...
The government has decided to give every person in the U.S. a $5 coupon that they can use at the grocery store to purchase their choice of cheese. We would expect this policy to lead to
A) an increase in aggregate demand but not equivalent to the full impact of all of the coupons redeemed due to some direct expenditure offset. B) no increase in aggregate demand because there would be no direct expenditure offset. C) an increase in aggregate demand equivalent to the full impact of all of the coupons redeemable. D) no increase in aggregate demand due to the Ricardian equivalence theorem.
Which of the following is NOT a TRUE statement about perfectly competitive and monopolistically competitive firms?
A) Both monopolistically competitive and perfectly competitive firms have perfectly elastic demands. B) In the long run, only monopolistically competitive firms have excess capacity. C) Perfectly competitive firms produce at their efficient scale. D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
If price is initially above the equilibrium level
A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want.
The International Monetary Fund was founded
a. in Paris in 1938 b. in New York in 1961 c. in Washington in 1971 d. in New York in 1991 e. in Bretton Woods in 1944