Unit 11

Question 1

Backward-Bending Supply Curve of Labor

Answer 1

As the wage rises, the quantity of labor supplied may eventually decline; the income effect of a higher wage increases the demand for leisure, which reduces the quantity of labor supplied enough to more than offset the substitution effect of a higher wage

Question 2

Market Work

Answer 2

Time sold as labor

Question 3

Winner-Take-All Labor Markets

Answer 3

Markets in which a few key employees critical to the overall success of an enterprise are richly rewarded
Ex. Lee Lacocca, Former President of Ford

Question 4

Labor Union

Answer 4

A group of workers who organize to improve their terms of employment

Question 5

Craft Union

Answer 5

A union whose members have a particular skill or work at a particular craft, such as plumbers or carpenters
Ex. AFL- American Federation of Labor

Question 6

Industrial Union

Answer 6

A union of both skilled and unskilled workers from a particular industry, such as autoworkers or steelworkers
Ex. CIO- Congress of Industrial Organizations

Question 7

Collective Bargaining

Answer 7

The process by which union and management negotiate a labor agreement

Elect the representatives to negotiate with the company

Question 8

Mediator

Answer 8

An impartial observer who helps resolve differences between union and management

Question 9

Binding Arbitration

Answer 9

Negotiation in which union and management must accept an impartial observer’s resolution of a dispute

Question 10

Strike

Answer 10

A union’s attempt to withhold labor from a firm to stop production

Question 11

Featherbedding

Answer 11

Union efforts to force employers to hire more workers than wanted or needed

Question 12

Right-to-Work States

Answer 12

States where workers in unionized companies do not have to join the union of pay union dues