Chapter 10

1. Discuss the various explanations for the relative decline in union membership.

2. Discuss how the unions can increase the eager rate paid to the members who are employed by

(a) increasing the demand for labor,

(b) restricting the supply of labor, and

(c) bargaining for an above equilibrium wage.

Chapter 11

3. How is the pure union wage advantage defined? If in a given labor market wage rate would be $16 without a union and $20 with a union, then what is the pure union wage advantage? Explain how, and in which direction, each of the following might cause the measured union wage advantage to vary from the pure advantage:

(a) the spillover effect,

(b) the threat effect, and

(c) the product market effect, and

(d) the superior worker effect.