Economics – Janisch
Chapter 12 and 13 Test
Name:
Block:
1.
Collective bargaining is the process in which: a.
Bosses give raises to their employees b.
Workers receive annual raises as long as productivity rises c.
Workers who are laid off receive unemployment benefits d.
Unions and employers negotiate the conditions of employment
2.
To increase their bargaining position, unions may utilize all of the following except: a.
Strike b.
Lockout c.
Boycott d.
Picket
3.
Which tactic can a union implement when negotiating with management? a.
Injunctions b.
Strikes c.
Lockouts d.
All of the above
4.
Asking the public to not purchase goods or services produced by a company whose workers are on strike is called: a.
Picketing b.
Boycotting c.
Mediating d.
Arbitrating
5.
A deliberate work stoppage by a company is called: a.
A lockout b.
An illegal stoppage c.
An injunction d.
A strike
6.
To persuade a union into accepting its collective bargaining offer, management may impose a: a.
Lockout b.
Boycott of union made goods c.
Strike d.
Picket line in front of union headquarters
7.
An arbitrator: a.
Is an unbiased third party b.
Helps with collective bargaining c.
Decisions are final d.
All of the above

8.
The difference between a mediator and an arbitrator is: a.
Mediators can only be called in by the union b.
Arbitrators must be unbiased c.
Mediators only can offer advice to both parties d.
There is no difference
9.
A worker who has a college degree and extensive training is known as: a.
An unskilled worker b.
A skilled worker c.
A semi-skilled worker d.
A professional
10.
Which job is not considered a blue-collar job? a.
Bank teller b.
Construction workers c.
Plumber d.
Auto assembly person
11.
Service workers: a.
Included cooks b.
Are the fastest growing segment of the work force c.
Provide service directly to individuals d.
All of the above
12.
The civilian labor force: a.
Is every worker in America b.
Is made up of 16 year old job holders c.
Includes military personnel d.
All of the above
13.
Who does not belong to the civilian labor force? a.
A high school senior working at Macy’s b.
An unemployed carpenter c.
A stay at home mom d.
President Obama
14.
Labor unions: a.
Were made illegal by the Taft-Hartley Act in 1947 b.
Have increased in membership the last 20 years c.
Increased wages for many types of jobs d.
All of the above
15.
In a union shop: a.
All new hires must already belong to the union b.
All new hires must join the union after a period of time c.
All new hires must pay union dues, but do not have to join the union d.
All new hires have the option of joining the union or paying union dues

16.
In a right to work state: a.
Closed shops are illegal b.
Union shops are illegal c.
Workers tend to get paid less for their job d.
All of the above
17.
Right-to-work laws have resulted in: a.
Tougher union membership requirements b.
Unions having less power c.
Increase employee benefits d.
Increase in union dues
18.
Which is not a reason union membership has declined? a.
Right to work laws b.
Congressional legislation that protects workers c.
Congressional laws that make union membership illegal d.
Workers often feel they don’t want to pay union dues
Use the following chart to answer the following questions
Economic Data chart for May and June of 2011
Indicator May June
CPI
GDP
+0.1%
-0.2%
+0.08%
-0.05%
Unemployment
Dow Jones
Inventories
Average hours worked per week
9.6%
12,200
Med/low
36.5
9.6%
12,300
Low
36.9
19.
Where in the business cycle is the economy, according to the chart? a.
Beginning an expansion b.
Ending an expansion c.
Beginning a contraction d.
Ending a contraction
20.
What was the inflation rate for the month of June? a.
0.08% b.
-0.05% c.
9.6% d.
This chart does not give this information
21.
Productivity: a.
Lowered in the month of June b.
Lowered in the month of May

c.
Stayed at the same rate as unemployment d.
All of the above e.
Both a and b only
22.
The stock market: a.
Shows how well the economy is progressing b.
Gained 100 points in June c.
Indicates a recession is nearing d.
All of the above e.
Both b and c only
23.
The levels of inventories indicate: a.
That businesses will begin to produce fewer goods b.
That businesses will begin to produce more goods c.
That consumers are buying fewer goods d.
Both a and c only
24.
The average hours worked per week indicate: a.
Consumers will have more money to spend b.
Production levels will soon be increasing c.
More people are working d.
Both a and b only
25.
Unemployment: a.
Raised 9.6% in June b.
Raised 9.6% in May c.
Stayed the same d.
Both a and b only
26.
Where in the business cycle is the economy, according to the chart? a.
Beginning an expansion b.
Ending an expansion c.
Beginning a contraction d.
Ending a contraction
True (A) or False (B)
27.
Minimum wage laws increase the unemployment rate of skilled workers.
28.
Because of minimum wage laws, there is a shortage of unskilled labor.
29.
Inflation is measured by using the Consumer Price Index.
30.
GDP is calculated by adding consumer purchases with imports.
31.
Measuring a nation’s national income is the best way to determine its economic strength.
32.
Because of inflation, consumers buy less, which causes businesses to produce less.
33.
Because people can purchase more during a period of deflation, the economy does well.
34.
During demand-pull inflation, the GDP will increase.
35.
Cost-Push inflation is caused by an increase in the amount consumers purchase.

36.
During an expansion, the GDP and Unemployment rise.
37.
During a contraction, the GDP falls and the unemployment rate rises.
38.
Consumer confidence and new home building permits are both leading indicators.
39.
If a large percent of the population feels the economy will do poorly in the future, a contraction will often result.
40.
If businesses go through a period of investment and innovation, an expansion will often result.