Membership in unions decreased rapidly in the 1980s.
12. If the wage rate is fixed, MLC > wage.
13. Unions often face a tradeoff between higher wage rates and employment.
14. In a union shop, prospective employees must be union members before they can be hired.
15. If the demand for the finished good is elastic, the demand for the resources used to
produce that good will be inelastic.
16. Labor’s Magna Carta was the Wagner Act.
17. Returns to monopsony power occur because the wage rate
18. If the supply curve of labor facing the firm is upward sloping, the wage rate and the MLC
19. Monopsony firms will hire more workers than they would if the labor market were
20. Strikes are a form of legitimized extortion by which workers withhold labor to extract
higher returns for management.
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