27- Flashcards
Labor unions did not become traditional or popular institutions until the
1940’s
The predecessor to the AFL was the
Knights of Labor
The national Labor Relations Act was passed in
1935
The _____ Act allows states to enact “right-to-work” laws
Taft-Hartley
The “bill of rights” for union members and a provision of union election procedures were 2 of the main provisions of the ___ Act.
Landrum-Griffin
“Right-to-Work” laws
make it harder for unions to organize
Union members has been hurt in recent decades by the decline in manufacturing.(T/F)
true
Musicians’ union is a industrial union.(T/F)
false
The act that supported union organizing was the
National Labor Relations Act
The job for ____ is to impose a settlement.
an arbitrator
Most strikes
cause little economic disruption.
The ____ Act supported union organizing while the ___ Act protected “employers’ Rights.”
Wagner, Taft-Hartley
At its peak labor union membership was about ___% of the labor force.
25
The establishment of “right-to-work” laws came about with the passage of the
Taft-Hartley Act
Statement 1: One reason unions have declined as a percent of the workforce is that workers have shifted from manufacturing to service industries, which are harder to oganize. Statement 2: The AFL and the CIO merged in 1955. (T/F)
True
____Act set forth a list of “employers’ rights”
The Taft-Hartley and the National Labor Relations
You are most likely to be a union member if you
are a government employee
The number of labor union members reached its peak in the decade of the
1970s
The threat of a strike provides the motivation necessary to make collective bargaining work.(T/F)
true
An example of an exclusive union would be
the Professional Air Traffic Controllers Organization.
The year that had the worst strikes was
1946
A closed shop
is an arrangement unions have with employers limiting employment to union members only.
A union composed of members with the same trade or occupation is called
a craft union
The Taft-Hartley Act is viewed as anti-labor and the Wagner Act is viewed as pro-labor.(T/F)
true
Today a college graduate earns about $____ while a high school graduate earns about $___.
51,000;28,000
In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make about what happened to our real wages over this period?
they fell
The backward-bending labor supply curve includes each of these variables except
the savings effect
A firm’s demand for labor is
its MRP schedule
If Jason were offered a job as an accountant at $30,000 and a job as a running back for the Oakland Raiders at $300,000, and he would have been willing to accept the latter even if it paid as little as $50,000, he would be receiving economic rent of
$250,000
An effective minimum wage is set
above the equilibrium level
Which statement is true about incomes in the US?
there is a wide disparity of income.
Some conservative economists want to help more teenagers to find jobs by
lowering the minimum wage rate for teenagers.
Virtually no one today earns economic rent.(T/F)
false
The amount a person earns over and above the amount he/she would be wiling to work for is called
economic rent
The reason U.S. workers were better paid than foreign workers during the 1950’s and 1960’s is
we had more capital per worker.
Our balance of trade has been negative since the early 1900’s(T/F)
false
If germany can make compact cars more efficiently than Russia, it enjoys
an absolute advantage
most economists
consider tariffs less of an evil than quotas
we have run merchandise trade deficits of over $70 billion since
1983
One thing we can do to reduce trade imbalance in the U.S. would be to
push down the value of the dollar relative to other currencies.
Higher protective tariffs
will become more likely if we do not reduce our trade deficit.
A hollow corporation
imports foreign goods and puts its own name on them.
Which makes the most sense economically?
national specialization
There are several problems causing our huge trade deficit; there are no easy solutions to these problems(most accurate statement)
…
THe chinese economic expansion since the early 1980s and the Japanese economic expansion from the late 1940s through the 1980s were
both dependent on the american market
Imports would lower by
both tariffs and import quotas
Domesic car prices decline; would not be an impact of tariffs imposed on foreign cars.
…
A balance-of-trade surplus exists
if the dollar value of exports exceeds the dollar value of imports.
A tariff can best be described as
an excise tax on an imported good
An import quota is
a limit on the quantity of foreign goods that can be sold in the nations domestic market.
Only the tariff produces revenues for the government. (T/F)
true
During the ears 1970-1986, the merchandise balance of trade in the U.S. shifted from
trade surplus to a large trade deficit
Suppose that labor is the only productive resource needed. Scotland has a comparative advantage in producing firewood, while Iceland has a comparative advantage in producing wool. if the 2 nations trade with each other
scotland should export fire wood and iceland should export wool.
When a country exports fewer goods and services than it imports this is called
a balance deficit
If nation A can produce a product at a lower opportunity cost per unit than nation B, nation A
has a comparative advantage
If a nation has a ____ in the production of an item, it can produce ___ of the item with the same quantity of resources than can other nations.
absolute advantage; more
An import quota does, increase the price of domestic goods to the consumer.
..
The introduction of a tariff will expected to
reduce imports.
Suppose our economic professor earns an equal annual salary of $40,000. The professor loves teaching and would not quit her job if her pay were reduced to $15,000 per year. your professor is earning annual economic rent of.
$25,000
According to the theory of the backward-bending labor supply curve, as the wage rate rises,
first the substitution effect sets in, and then the income effect.
The possibility of earning economic rent is great if
the demand of a factor relatively high relative to supply.
If you are earning $20,000 a year today and you were to earn $40,00 a year in 10 years,
your money wages will have increased..
The highest paid professional athletes earn economic rent(T/F)
True
Who is most likely to be earning economic rent?
a major league baseball player
Conservative economics would like to help younger workers get work experience by
lowering minimum wage rate.
If he legal minimum wage rate were set at $15/hour,
employment would decline substantially
An increase in the demand for electricians will
increase economic rent earned by electricians.
Compared to real wages in 1973, today they are about
9% lower
Among these countries, which has the highest hourly wage and fringe benefits in manufacturing?
Germany
Traditionally our society got its dirty work done by
forcing oppressed minorities to do it, and paying people higher wages to do it( all of these choices are correct)
Economic rent ids generally associated with
high wages
Traditionally blacks have earned about ___% of what whites have earned.
60
Women working full time earn about __% of what men working full time earn.
75
Each of the following has contributed to the growing number of homeless people except
the rising crime rates
About 1 out of ever ___ black Americans are poor.
4
The poverty line is set
by the U.S. Department of Commerce
Public assistance has failed completely(T/F)
false
A family of four with one wage earner who earns the minimum hourly wage would be
well below he poverty line
There are at least a dozen different theories of poverty.(T/F)
true
Charles Murray believed that the antipoverty program of the 1960s and 1970s
caused more poverty
Blacks have a poverty rate of about three times that of whites.(T/F)
true
The poverty line in 2007 for a family of four was slightly more than $ ___.
20,650
The lowest the poverty rate has been during the last 40 years was in
1973
Between 1960 and 1973 the poverty rate ___; between 1973 and 1983 the poverty rate ___.
fell;rose
William Gates and Warren Buffet, each has a personal fortune worth more than
$50 billion
Which goes exclusively to the poor? Medicaid Medicare Social Security Unemployment Insurance Benefits
medicaid
Which does not go exclusively o the poor? Medicaid Food Stamps Unemployment Insurance Benefits Public Assistance
Unemployment insurance benefits
Conservatives and liberals ___ on the cause of poverty and ___ on how to solve it.
disagree; disagree
The conservative theory of poverty blames ___ for welfare dependency.
both he poor and the government
There is no more single causes of homelessness.(T/F)
true
The Lorenz curve shows the distribution of
income
In which of the following groups of people in the U.S. would the incidence of poverty be the greatest? Black families with a female head All families o seven or more members farmers and farm laborers families whose head is ages 65 or over
black families with a female head
Because the value of non-cash benefits to the poor is not counted when calculating the official poverty rate in he US the official statistics
overestimate the poverty level.
What fraction of the worlds population lives o no more than $2 a day?
1/2
Since 1994 the number of people on he welfare rolls has
fallen substantially
The person most closely associated with a conservative theory of poverty is
Charles Murray
In general, a plot of land goes to
the higher bidder
The supply of land is
perfectly inelastic
who wanted to tax away all rent from landlords?
Henry George
Economist say that a dollar today is worth
more than a dollar in the future.
Which is not determined by supply and demand? The wage rate the interest rate rent profits
profits
“Profits are a reward for risk-bearing” would be a view held by
Frank Knight
____ sees the entrepreneur as an exploiter of labor.
Karl Marx
A change in rent will be brought about by a change in
the demand of land
Henry George advocated each of the following except that
- all land should be free
- all rents should be taxed away
- the government should raise all its tax revenue from a single tax on land
- Since land did not really belong to the landlords, rent was an unearned surplus
all land should be free
The main factor in determining how much one plot of land is worth relative to another plot is
its location
In economics we say he amount of land is
fixed
Which of the following is NOT a source o profit?
- Innovation
- wages
- exercise of monopoly power
- risk taking
wages
The present value of $1000 received 2 years from now given the current rate of interest
is less than the present value of $1000recieved 1 year from now
The supply of land at a location is
perfectly inelastic
Changes in land rents in he US are chiefly the result of
changes in the demand of land
Rent, interest, and wages are determined by supply and demand.(T/F)
true
If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profit it earned?
(all these choices are correct) rewards for innovation, rewards for risk taking, monopoly profits
Horizontal dotted line is the price ceiling.
…
Usury laws prevent banks form charging higher credit card interest rates that the price mechanism would allow.(T/F)
true
Usury laws would hurt some borrowers and interfere with the price mechanism.(T/F)
true
Usury is considered the charging of
unconscionably high interest rates
If there were no usury law the interest` rate would be ___%.
28
Usury laws are popular with
the public but not with economists
Which of these does not interfere with the price mechanic?
- Usury laws
- minimum wage laws
- Farm price support, or price floors
- the law of supply and demand
the law of supply and demand
Wen poor people et personal loans, they usually pay much higher interest rates than the average American.(most accurate statement)
…
