BUEC 280 Summer 1999 D. Maki Final Examination Instructions: There are 18 questions on this examination, all equally weighted. Answer all questions. For each question, define the concept(s) underlined, and answer the question asked. 1. Why is it sometimes claimed that interest arbitration does not work well? Why is it more used in the public sector than in the private sector? 2. Explain how the distinction between craft unions and industrial unions led to problems in the historical development of trade unions in Canada. 3. If the union is a wage maximizer, will efficient bargains all occur on the demand curve? Explain. 4. Explain what the main terms are in implicit contracts. Would it be expected that enforcement of implicit contracts would differ between union and non-union settings? Explain. 5. Explain how wage discrimination against women could result if male workers are unionized but female workers are not. Would it be expected that this form of discrimination would eventually disappear? Explain. 6. Explain why equal pay legislation is easier to enforce than pay equity legislation. 7. Statistics Canada's Low Income Cut-offs as of a point in time vary for different people based on two characteristics. What are these characteristics, and how do they affect the LICO? 8. What is the difference in the incentive effects of a negative income tax as opposed to welfare? 9. If Statistics Canada were to publish only one measure of unemployment, which do you think it should be? Explain and justify your choice. 10. With regard to the earnings of immigrants versus the native born, what are the entry effect, assimilation effect and cohort effect? 11. Discuss the dynamics of unemployment, including incidence versus duration, and by reason for becoming unemployed. 12. In the labour dispute involving workers at Coca-Cola in Vancouver, what was the main issue? What tactics were used by the union? What tactics were used by management? Explain. 13. Discuss the ways in which unemployment insurance might affect the rate of unemployment. What is the impact of moral hazard and experience rating on this? 14. What were the issues involved and the outcome of the Winnipeg General Strike of 1919? What impact did this event have on syndicalism in Canada? 15. Is there a reason why one would expect equilibrium job vacancies to be equal to equilibrium unemployment? Explain. Does frictional unemployment depend on employer fussiness? Again, explain. 16. Give two reasons why customer discrimination might exist. Would competition be expected to eliminate this type of discrimination? Explain. 17. What were the apparent effects of the reserve clause system and the free agent system on the degree of exploitation of baseball players? 18. Explain how unions can affect productivity using the exit-voice model, featherbedding, and through a shock effect. Does it matter for your answer whether productivity is defined as output per worker versus total factor productivity? Explain.