Economics 0455 · IGCSE
Trade unions
52 practice questions on Trade unions, with worked solutions and instant marking.
What drawback does a trade union face when representing workers in a company where specialisation has increased?
Feb/March 2016
What is generally a function of a trade union?
Feb/March 2017
At the beginning of 2015, dockworkers on the USA's west coast carried out industrial action in the form of a go-slow, which disrupted imports and exports. Their trade union coordinated this action. Unions in the USA are becoming weaker, especially in the private sector. The majority of workers in the USA are employed in the private sector.
Feb/March 2017
If a trade union manages to push wages in an industry above the equilibrium wage, how would the demand for labour and the supply of labour be affected?
Feb/March 2018
What does the term trade union mean?
Feb/March 2020
A national trade union wants to raise the wages of its members without cutting the number employed. Which factor would make this possible for the union?
Feb/March 2021
Which of the following is not a benefit of belonging to a trade union for a worker?
Feb/March 2023
Serbia ranks as the world’s second largest producer of raspberries, and raspberries have elastic demand. The economic problem is encountered by consumers when they purchase raspberries. Only a small number of raspberry farm workers belong to trade unions. By 2020, trade union membership in Serbia had dropped to 20% of all workers. In that same year, Serbia had a larger number of state pensioners than workers.
Feb/March 2023
In some countries, the number of trade union members has fallen substantially. Who belongs to trade unions?
Feb/March 2025
The table gives the figures for a country’s trade union membership, in millions, from 2008 to 2011. What conclusion can be drawn about the country’s trade union membership over the period 2008 to 2011?
May/June 2015
A trade union and employers set a minimum wage $(W_1)$ that lies above the market equilibrium wage $(W)$ in that industry. What effect does paying the minimum wage $(W_1)$ have?
May/June 2015
Which of the following is not a function of a trade union?
May/June 2015
In some countries, trade union membership is falling, yet in China it is rising. Workers’ industrial action is becoming more frequent in China as workers seek higher wages. A recent strike took place at a car factory in South China, owned by a Japanese multinational company.
May/June 2015
What would a trade union normally be expected to do for its members?
May/June 2016
A government brings in a law aimed at reducing the restrictive practices of trade unions. What would this law most likely be intended to achieve?
May/June 2016
A trade union reaches an agreement with employers in an industry to adopt a ‘closed shop’ policy. How does this work?
May/June 2016
What is meant by the term ‘closed shop’?
May/June 2016
What is most likely to be used to justify a claim for wage increases in an industry?
May/June 2017
The Congress of South African Trade Unions (COSATU) is South Africa’s largest trade union federation. It represents public sector workers. In 2010, its membership increased. In the same year, COSATU’s bargaining power fell. What could explain this?
May/June 2017
Under what circumstances is a trade union likely to have greater power to raise its members’ wages?
May/June 2018
Which factor is most likely to support a trade union’s request for wage increases in an industry?
May/June 2018
What is the most probable reason a business may welcome the arrival of a trade union for its employees?
May/June 2018
In 2016, the UK trade union for doctors was negotiating collectively with the government over proposed alterations to doctors’ contracts. The union believed the purpose of the changes was to lower the government’s cost of supplying healthcare. They could also mean fewer people train to become doctors in the future.
May/June 2018
The diagram illustrates the demand for labour and the supply of labour in an industry. The initial equilibrium is X. A trade union then secures a wage rate of $W$. What shows the resulting change in employment?
May/June 2021
What advantage does a worker gain from joining a trade union?
May/June 2021
In Sweden, trade union membership is far above the level seen in most other countries. During 2019, 70% of Swedish workers belonged to a trade union. Over 85% of Swedish workers work in the tertiary sector, whereas just 2% are in the primary sector. Swedish workers use their incomes to buy a range of products, some of which, for example sweets, are demerit goods. Sweden records the 7th highest consumption of sweets per head in the world.
May/June 2022
Which factor would not make a trade union's bargaining power stronger when trying to increase wages?
May/June 2023
Which trade union activity would be advantageous for firms?
May/June 2023
What is likely to strengthen the bargaining power of a trade union?
May/June 2023
Which definition best describes a trade union?
May/June 2024
What is one role of a trade union?
May/June 2025
At what point would a trade union be less likely to succeed in securing a rise in wages for its members?
Oct/Nov 2015
A national trade union aims to raise the pay of its members without cutting the number of people employed. Which factor would assist the union in doing this?
Oct/Nov 2015
From the figures for the United States (US) in 2011, $7.6$ million public sector workers ($36\%$ of public sector workers) were in trade unions, whereas only $7.1$ million private sector workers ($8\%$ of private sector workers) were members of a trade union. What conclusion can be drawn from this information?
Oct/Nov 2015
What could be a drawback for a trade union when it negotiates for higher pay for its members?
Oct/Nov 2016
What factors could strengthen a trade union’s power to secure a pay rise for its members in a coat factory?
Oct/Nov 2016
In March 2014, teachers in Argentina went on strike after their unions were unable to agree wage rates. The government proposed a 25% pay rise, but the unions were seeking an increase above the country’s 32% inflation rate. The government argued that very large pay rises would create unemployment. It also said that the economy’s outlook would shortly improve because of its devaluation of the country’s exchange rate at the start of the year.
Oct/Nov 2016
At what point is a trade union most likely to achieve the objectives of its members?
Oct/Nov 2017
What factor would make it more difficult for a trade union to raise the wage rate for its members without lowering employment?
Oct/Nov 2018
What factors would help a trade union gain a strong bargaining position when it negotiates higher wages for its members in a certain firm?
Oct/Nov 2018
A trade union manages to push wages in an industry above the existing equilibrium wage. In what way would the demand for labour and the supply of labour alter?
Oct/Nov 2019
In 2016, Argentina's annual inflation stood at 20%, having dropped from 40% in 2015. Inflation had stayed high since 2003. Wages were regularly increased. In addition, some employees pressed for more non-wage benefits. Industrial action, often taking the form of strikes called by trade unions, became more frequent in Argentina.
Oct/Nov 2019
A German car manufacturer sets up a factory in India. Some Indian employees at the factory become members of a trade union. What would the trade union be expected to do for these workers?
Oct/Nov 2020
Which task is not one of the functions of a trade union?
Oct/Nov 2020
The market equilibrium wage rate is $\$10$ per hour. Why might the wage rate that is actually paid be $\$12$ per hour?
Oct/Nov 2021
Some economists argue that heavy government spending and trade unions can generate market disequilibrium. Even so, trade unions can also have an important part in economic development. Singapore has more than 60 trade unions, operating in both labour-intensive and capital-intensive industries.
Oct/Nov 2021
What is a trade union most likely to safeguard?
Oct/Nov 2023
Employees in a country have been worried that their pay is failing to rise as quickly as inflation. In what ways can trade unions help workers secure an increase in pay?
Oct/Nov 2024
Peru’s industries are pressing the government to upgrade the nation’s transport network. Tourism is Peru’s third-largest industry. The Peruvian tourism industry includes many firms. Fruit farming is another major industry in Peru. In recent years, trade union membership in Peru’s fruit-farming industry has risen.
Oct/Nov 2024
What is one characteristic of every trade union?
Oct/Nov 2025
In what ways could a trade union strengthen its bargaining power?
Oct/Nov 2025
What would make a trade union stronger?
Oct/Nov 2025