Test Bank For Industrial Relations in Canada 3rd Edition By Robert Hebdon

Chapter 3 – Economic, Social, and Political Environments

1. According to the Organization for Economic Co-operation and Development, Canada is among the worst countries in the developed world in term of widening income gap.
a. True
b. False

ANSWER: True

2. Globalization has resulted in a greater mobility of capital and decreases in the flow of goods. a. True

b. False

ANSWER: False

3. An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply. a. True

b. False

ANSWER: True

4. An industry is said to be labour intensive if labour costs are a high proportion of total costs. a. True

b. False

ANSWER: True

5. Unions will have more bargaining power when there is little competition in the firm’s product market. a. True

b. False

ANSWER: True

6. A monopsony occurs when an organization is the sole market buyer of a good, service, or labour. a. True

b. False

ANSWER: True

7. A key economic assumption is that labour is perfectly mobile. a. True

b. False

ANSWER: True

8. In theory and in practice, labour markets are always competitive. a. True

b. False ANSWER: False

9. Monopsony exists when a firm is a wage setter but not a wage taker. a. True

b. False

ANSWER: True

10. According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.

a. True b. False