2.
Which of the following is NOT a common function of trade unions?
A
Setting prices for goods and services
B
Providing legal support
C
Negotiating wages
3.
What is a strike?
A
A collective work stoppage by union members
B
A bonus payment to employees
C
A mandatory overtime shift
4.
When might a trade union be most likely to achieve a good pay deal for its members?
A
when labour costs are a high percentage of the firm’s total costs
B
when the firm is making large profits
C
when the firm is introducing capital-intensive production
5.
A country experiences a long strike by railway workers.
What would be the macroeconomic impact of such a strike?
A
National output would fall.
B
Railway workers would lose income.
C
The demand for taxi services would rise.
6.
What is collective bargaining?
A
Negotiation of wages and conditions of employment by a union
B
Setting prices for goods and services
C
Individual salary negotiations
7.
When is a trade union likely to have more power to increase its members’wages?
A
when imports are increasing
B
when labour supply is increasing
C
when output is increasing
8.
What would put a trade union in a strong bargaining position to negotiate higher wages for its members in a particular firm?
A
The demand for the product produced by the workers has an inelastic demand.
B
The economy is experiencing high unemployment.
C
Wage costs area high proportion of total costs for firms in the industry.
9.
Which task is not a function of a trade union?
A
deciding on the level of a national minimum wage
B
negotiating working hours and conditions of work
C
providing legal advice on unfair dismissal
10.
What is a trade union ?
A
an organisation that represents the interests of workers
B
an organisation of employers from an industry
C
an area where there are no barriers to trade
11.
A German car manufacturer builds a factory in India. Agroup of Indian workers at the factory join a trade union.
What would this trade union be expected to do for the workers?
A
Promote an advertising campaign to sell more Indian cars.
B
Protect the workers against unfair dismissal by the employer.
C
Negotiate with the German government on tariff reductions for Indian-produced cars.
12.
What will make it harder for a trade union to increase the wage rate for its members,without reducing employment?
A
lower price elasticity of demand for the product
B
growth in an economy and increased demand for labour
C
an increase in the number of substitutes for the product
