Labor Economics Study Guide Questions
Course Introduction
Labor Economics explores the functioning and dynamics of labor markets, examining how workers and employers interact, and how wage rates, employment, and income are determined. The course covers a wide array of topics, including labor supply and demand, human capital theory, wage structure, discrimination, unemployment, and the impact of labor market policies and institutions such as unions and minimum wage laws. Through empirical studies and theoretical models, students gain insight into current labor market issues and the factors influencing labor force participation and productivity.
Recommended Textbook
The Labor Relations Process 9th Edition by
William H. Holley
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14 Chapters
564 Verified Questions
564 Flashcards
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Page 2
Chapter 1: Union-Management Relationships in Perspective
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) Mediators have binding legal authority to require the parties to settle an interest dispute, but they often first restrict themselves to offering advice to help each party clarify their own priorities and assessment of costs or risks associated with failing to reach a voluntary agreement.
A)True
B)False
Answer: False
Q2) The "focal point" of labor relations represents:
A) union and management officials.
B) public opinion.
C) work rules.
D) the government.
E) all of these.
Answer: C
Q3) Work rules, while complex in nature, have a common dimension since they all pertain to compensation for work performed.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Evolution of Labor Management Relationships
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Sample Questions
Q1) The merger of the AFI and CIO in 1955 has minimized raiding between the two organizations, but has not resulted in any major strategic or philosophical shift in organized labor.
A)True
B)False Answer: True
Q2) The sitdown strike helped the CIO to obtain union membership in the 1930s, although it was soon outlawed by the Supreme Court.
A)True
B)False Answer: True
Q3) Employers actively opposed unions after World War I by implementing the American Plan.
A)True
B)False Answer: True
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Chapter 3: Legal Influences
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Sample Questions
Q1) The Racketeer Influenced and Corrupt Organizations Act (RICO) forbids anyone involved in racketeering from investing in or controlling through racketeering activity any enterprise (business or labor union) engaged in interstate commerce.
A)True
B)False Answer: True
Q2) Samuel Gompers, AFL president, proclaimed the Clayton Act to be the Magna Charta of U.S. labor; however, the legislation did not prove to help labor organizers.
A)True
B)False Answer: True
Q3) Employee rights are guaranteed by the National Labor Relations Act; thus, the National Labor Relations Board investigates companies on its own to assure that the rights are protected.
A)True
B)False Answer: False
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Chapter 4: Unions and Management: Key Participants in the Labor Relations Process
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41 Verified Questions
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Sample Questions
Q1) Which of the following did not encourage union mergers?
A) executive preference
B) decline of some US industries
C) avoidance of external controls
D) jurisdictional disputes
E) all of these
Q2) The local union meeting is considered the local union's most important governmental activity.
A)True
B)False
Q3) Elements of a positive human resources management program include which of the following?
A) absence of symbols of rank and status
B) overall corporate strength
C) promotion from within
D) competitive pay and benefits
E) all of these
Q4) The supreme governing body for the international union is its convention.
A)True
B)False
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Chapter 5: Why and How Unions Organized
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Sample Questions
Q1) The NLRB has upheld the right of the union to discipline union members who actively participate in the campaign to decertify the union as long as the action does not affect employment status.
A)True
B)False
Q2) A grouping of jobs or positions in which two or more employees share common employment and conditions is designated by the NLRB as a/an:
A) union shop.
B) craft shop.
C) appropriate bargaining unit.
D) open shop.
E) closed shop
Q3) After a decertification petition is filed with the NLRB, the employer is free from bargaining with the union until the question of representation is resolved.
A)True
B)False
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Chapter 6: Negotiating the Labor Agreement
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Sample Questions
Q1) Contract negotiations can result in which of the following outcomes?
A) a lock-in by the union to force management into a contract settlement
B) decertification of the union as the employees' bargaining representative
C) a voluntarily negotiated contract settlement
D) a lock-in by management to force the union into a contract settlement
E) all of these
Q2) Where there is substantial continuity in a unionized firm's operation after transfer of ownership occurs, the purchaser of the business would be classified as a new employer for the purpose of determining the employer's legal duty to bargain.
A)True
B)False
Q3) When a distributive bargaining approach is used to negotiate labor contract terms, the same party always wins (gains more) on every bargaining issue.
A)True
B)False
Q4) Generally, high unemployment reduces the union's cost of disagreeing with management.
A)True
B)False
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Chapter 7: Economic Issues
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Sample Questions
Q1) Supplemental unemployment benefits (SUB) are payments made by the federal government to unemployed workers during a layoff.
A)True
B)False
Q2) Union leaders favor job evaluation more than managers for use in designing the wage structure.
A)True
B)False
Q3) A Scanlon plan, Rucker plan, and Improshare plan are all examples of gain sharing plans.
A)True
B)False
Q4) The majority of union contracts include a pension plan that can best be described as a defined contribution plan.
A)True B)False
Q5) The majority of private sector employees participate in a profit sharing plan. A)True B)False
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Chapter 8: Administrative Issues
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Sample Questions
Q1) Since passage of the Americans With Disabilities Act (ADA):
A) labor force participation rates have increased for moderately disabled persons but remained low for severely disabled persons.
B) employers have lost the majority of federal court cases involving ADA claims.
C) employers are required to make an accommodation for a disabled person even if that action would violate a term or condition of an existing labor agreement (e.g., seniority rights).
D) all of these
E) none of these.
Q2) Which federal agency is authorized under the LMRA to resolve jurisdictional disputes?
A) National Labor Relations Board
B) Federal Mediation and Conciliation Service
C) National Mediation Board
D) National Joint Board
E) Department of Labor
Q3) Job security work rules when carried to an extreme are called featherbedding.
A)True
B)False
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Page 10
Chapter 9: Resolving Negotiation Impasses and Contract
Ratification
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Sample Questions
Q1) A mediator functions more as an invited guest who can be required to leave if one or both bargaining parties no longer desire the mediator.
A)True
B)False
Q2) Which of the following are either illegal or in violation of the labor agreement?
A) economic strike
B) wildcat strike
C) unfair labor practice strike
D) secondary strikes
E) wildcat strike and secondary strikes only
Q3) The right to strike is one of the rights guaranteed under the Labor Management Relations Act.
A)True
B)False
Q4) Interest arbitration, unlike mediation and fact finding, results in a final and binding decision.
A)True
B)False
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Chapter 10: Contract Administration
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Sample Questions
Q1) The second step grievance answer is usually furnished by the:
A) union steward.
B) the industrial relations representative.
C) first-line supervisor.
D) the plant manager.
E) the international union representative.
Q2) A disadvantage of the written grievance is that it usually increases emotions since an employee cannot be talked out of the issue once his or her name is signed on the grievance form.
A)True
B)False
Q3) Grievance trading:
A) occurs just prior to arbitration.
B) occurs before the first step in the grievance procedure.
C) occurs after the first step and before the second step in the grievance procedure.
D) occurs after the second step and before the third step in the grievance procedure.
E) occurs after the fourth step in the grievance procedure.
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Chapter 11: Labor and Employment Arbitration
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Sample Questions
Q1) All things considered (time and expense involved), arbitration offers fewer advantages to the parties than other methods of grievance resolution, such as "pulling the pin" through sudden strike activity.
A)True
B)False
Q2) Governmental agencies such as the EEOC and the NLRB can retain jurisdiction over an issue heard by an arbitrator and can modify an arbitrator's decision if it conflicts with their interpretation of public policy.
A)True
B)False
Q3) Arbitrators often assess witness credibility through rather subjective measures, such as speaking softly or looking at their feet.
A)True
B)False
Q4) Arbitrators heavily weigh offers of a compromise grievance settlement before the arbitration hearing since this offer reveals the intent of one or both of the parties.
A)True
B)False
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Page 13
Chapter 12: Employee Discipline
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Sample Questions
Q1) Under due process element of double jeopardy, the employer cannot first suspend an employee indefinitely and then subsequently discharge the employee.
A)True
B)False
Q2) The presence of "mitigating circumstances" usually makes it more likely that the disciplinary actions of management will be upheld, particularly discharge decisions.
A)True
B)False
Q3) Suspensions:
A) must always be given before discharge.
B) typically average three months in length according to one study.
C) are less serious than "oral warnings" because they do not become a permanent part of the employee's work record.
D) are disciplinary lay-offs without pay.
E) typically are the step after discharge.
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14
Chapter 13: Labor Relations in the Public Sector
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Sample Questions
Q1) The highest percent of public-sector employees who are union members exist at what level of government?
A) international
B) federal
C) regional
D) state
E) local
Q2) Which one of the following strategies is NOT a strategy that is commonly used to increase a public employer's cost of continuing to disagree with a union bargaining proposal?
A) A threat to conduct a recall election.
B) A threat to "blow the whistle" on a questionable management practice.
C) A threat to withdraw the political support of union members
D) Malicious obedience or "working to rule" in order to slow down work
E) All of these are commonly used strategies.
Q3) If a governmental unit privatizes a government service to a private business, the private employer is likely to be covered under the Labor Management Relations Act.
A)True
B)False
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Page 15
Chapter 14: Labor Relations in Multinational Corporations
and in Other Countries
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Sample Questions
Q1) A number of large MNCs are so enormous that their sales are frequently larger than the entire economy of the countries in which they conduct business.
A)True
B)False
Q2) Unions in Cuba represent a broad array of constituents including current workers, retired pensioners, and even the unemployed.
A)True
B)False
Q3) The majority of all workers in the United States are protected against termination without cause.
A)True
B)False
Q4) Three unique characteristics of Japan's industrial relations system are:
A) exclusive bargaining agent, lifetime employment, industry unions.
B) appropriate bargaining units, exclusive bargaining agent, industry unions.
C) enterprise unions, lifetime employment, seniority-based wage system.
D) lifetime employment, wage system, exclusive bargaining units.
E) labor-management conflict, lifetime employment, enterprise unions.
Page 16
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