Labor Relations Quiz

Arbitration places a dispute before a third party for a binding settlement.

• True

• False

A grievance procedure is an informal method of settling workplace disputes.

• True

• False

The market theory of wage determination states that salaries are best set by management.

• True

• False

Signaling theory assumes that people with college degrees are worth more in the marketplace than those with only high school diplomas.

• True

• False

The theory of negotiated wages states that organized labor helps to determine pay rates.

• True

• False

Which of these would most likely produce an exception to the market theory of wage determination?

• seizure

• signaling theory

• the equilibrium wage rate

• the theory of negotiated wages

In collective bargaining negotiations, who represents the interests of the workers?

• a third party

• a fact-finder

• elected union officials

• elected company officials

Which noncompeting category of workers stands to gain the most from unionization?

• skilled labor

• unskilled labor

• semiskilled labor

• professional labor

Which of these offers an explanation for why a less productive worker might make more than his or her peers?

• seniority

• fact-finding

• the equilibrium wage rate

• the market theory of wage determination

Which of the following is a term for a labor-dispute settlement tactic used by neither unions nor management?

• seizure

• stoppage

• mediation

• arbitration