In an effort to change the balance of negotiations between ___________ and _______________,

	workers and employers; monopsonies were formed
	individual workers and government authorities; labor unions were formed
	workers and employers; labor unions were formed
	lobbyists and employers; labor unions were formed

Labor unions can

	act as a monopoly in the labor market, and bring better gains for their membership.
	be a primary line of defense against suppressed wage levels.
	protect workers' pensions.
	be controversial in a for-profit market driven economy, and all of the above.

According to the theory of ________________ , countries gain from trade because

	absolute advantage; trade makes firms behave more competitively
	comparative advantage; world output can rise when each country specializes in what it does relatively best.
	opportunity cost; each country has an absolute advantage in producing something
	comparative advantage; output per worker in each firm increases

Critics of a labor union might argue one of the following:

	Unions have a higher percentage of women and workers over the age of 40
	Unions can prohibit economic growth if new technology is blocked
	Unions oppose suppression of wages by profit-seeking firms
	Unions have a tendency to gain as much as possible in the long-term

Currently there is a trend in international trade that economist call splitting up the value chain, the value chain:

	Is a calculated value of all the exports in the chain
	Products are produced in one factory and assembled in another factor in the same country
	Describes how products are produced in stages
	Subtracting the value of all the inputs from imported items to determine the cost of goods

The U.S. Government strongly encouraged unions to be formed in the early 1940's because they held the view that unions would help to:

	Strengthen the National Labor- Management relations act of 1935
	Encourage more woman to enter the workforce
	Co-ordinate the all-out production efforts needed during World War 11
	End racial discrimination that was prevalent in American workplaces