What are the major goals that unions may pursue in labor negotiations? Are these ever in conflict with one another?
The most commonly held view of unions is that they seek to obtain the highest income for their members. The difficulty of describing union goals, however, is that there are trade-offs between income and employment (because of the downward-sloping nature of demand for labor). Alternative goals, therefore, include elements on job security. Unions may seek to establish and maintain seniority rules to protect jobs of long-time members; they may seek to expand the size of the union; they may seek some combination of these two extremes. While it is true that unions often have the power to raise wages above the competitive level, unions do not always exercise this power in pursuit of other goals.
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Stocks that offer a guaranteed fixed periodic payment or dividend are known as:
a. common stock. b. restricted stock. c. close-ended stock. d. preferred stock. e. open-ended stock.
In developing countries, farm productivity is low because _____
a. half of the labor force is involved in industrial activities b. half of the labor force is involved in the service sector c. more than half of the population consists of old people d. farming methods are generally primitive e. people prefer leisure over working
The owner of a perfectly competitive firm sets prices based on cost mark-up.
Indicate whether the statement is true or false.
If a tax system is progressive, then
A. the marginal tax rate is greater than the average tax rate as income rises. B. the average tax rate is constant, but the dollar amount paid in taxes increases as income increases. C. the average and the marginal tax rates are equal. D. the marginal tax rate is lower than the average tax rate as income rises.